It's not just a label for meat: halal investments target Islamic customers

Whether it's mutual funds, savings accounts or stock trading, millions of Canadians depend on investments for their financial future. 

But for some Muslims, faith took many monetary options off the table because of religious restrictions around concepts like paying — or being paid — interest.

It meant for years Canadians like Ammar Maqsud, who observes those religious tenets, couldn't even put money in a standard savings account from his bank. 

"They didn't have any halal options available; I kept it all chequing. So basically I was losing money [due to] inflation, because it was not invested for many years," said Maqsud, who works as an engineer in Calgary's energy sector. Halal is an Arabic term that translates to "permitted" or "allowed" in English.

Nearly five per cent of Canada's population identifies as Muslim, according to Statistics Canada. That could mean up to 1.8 million people faced similar problems if their religious beliefs match practices like Maqsud's.

While Islam does not typically ban investment, many practising community members cannot invest in companies that produce or sell religiously restricted products, which means it can be difficult to invest in accounts or financial products that may touch various sectors of the economy.

"I think a lot of the Muslim community is shy of investing, period," he said.

"They're like, hey I'm not going to invest at all to begin with, and that is holding them back for sure."

However, Maqsud is one of many Muslims taking advantage of an emerging market in Canadian investments — targeting customers who want "halal" options, or those that match his religious requirements.

Calgary's Hash Assad is a financial consultant with IG Wealth Management who focuses on this community. Maqsud is one of his clients.

"To be brutally honest with you, a lot of Muslims do not have a handle on what they can and cannot do," Assad told CBC News.

Most products that a Canadian investor would purchase from a financial institution are incompatible with the Islamic prohibition on interest, or riba.

"That makes most, if not all, conventional investments off-limits for Muslims. Things as simple as a savings account, not allowed.... Guaranteed investment certificate? Not allowed.... Bonds, mutual funds, exchange traded funds," he listed.

According to Assad, there are many other economic areas to avoid as well, and his job is to carefully select stocks and investments that do not touch any of them.