Understanding Halal Investing in Canada: Insights from Manzil’s Founder Dr. Mohamad Sawwaf
In our latest addy podcast episode, Stephen Jagger interviews Dr. Mohamad Sawwaf, founder of Manzil, Canada’s only halal finance platform. Here are the highlights from our conversation on the principles of halal investing, the mechanics of Islamic mortgages, and the potential for halal finance in Canada.
What is Halal Investing?
Halal investing follows Islamic finance principles that prohibit earning or paying interest. Instead, it emphasizes asset-backed, risk-sharing investments. Mohamad explained how this approach ensures transactions align with ethical standards, a key consideration for Muslim Canadians.
Manzil’s Halal Mortgage Options
Manzil offers two types of halal mortgages:
Murabaha: Manzil purchases the property and resells it to the buyer at a profit. This allows clients to make fixed payments without interest.
Musharaka: Manzil and the client co-own the property. Over time, the client buys out Manzil’s shares until they have full ownership.
These options enable Muslim Canadians to buy homes without compromising their beliefs.
The Importance of Halal Finance
For many Muslims, access to halal finance is about financial integrity. Mohamad explained that without it, Muslims are often left renting indefinitely or saving up to buy homes outright. Manzil bridges this gap, offering a way for Muslims to invest in real estate while adhering to their values.
Government Collaboration and Future Growth
Manzil is working with provincial governments, especially in Alberta and Ontario, to make halal finance more accessible and affordable. Alberta has already introduced measures supporting halal finance, setting a promising example for other provinces.
Expanding Beyond Canada
Manzil recently expanded into the U.S. with the acquisition of Aghaz, an Islamic finance platform. This move allows Manzil to bring halal finance solutions to a broader North American audience, marking a significant step in its growth.
For a deeper look into halal finance and Manzil’s mission, watch the full podcast episode with Mohamad Sawwaf on YouTube.
Relevant Links
Manzil’s Official Website
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