Halal investing in Canada
By Jason Heath on December 18, 2020
Investing can be challenging for Muslims, as solutions that are both Shariah-compliant and effective at helping achieve long-term financial goals are limited.
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Canadian Muslims have unique constraints when looking for investment options that fit their religious beliefs, and many mainstream options are unsuitable for these investors.
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The Quran is the Islamic text that guides all aspects of Muslim life. Shariah is the Islamic law that includes guidelines that impact financial decisions for Muslims; these include the prohibition of earning interest from fixed-income investments like bonds, which are a common component of an investment portfolio. Instead of earning interest from lending (a bond is a loan from the investor to the bond issuer), a borrower and lender should share in risks and rewards (like investing in stocks).