Assad Wealth Management anticipates its Halal Donor-Advised Fund, the first of its kind in Canada, to double in size to CA$60 million (US$41.83 million) by the end of 2025 on the back of growing appetite for Shariah compliant investment and financial services.
Hash Assad, an executive financial consultant with Assad Wealth Management, confirmed with IFN Investor that since the fund was launched in February 2024, it has amassed CA$30 million (US$20.92 million) in assets under management (AuM).
With this fund, the company aims to assist its Muslim investors to fulfil their moral obligations and leave a lasting legacy, as Assad Wealth Management has structured the Halal Donor-Advised Fund to enable its depositors to donate funds out of the profits.
“The Canadian Islamic finance environment is still evolving, as there are limited options for Muslim investors who have access primarily to gold mutual funds, WSHR ETF and Mackenzie Halal Fund as well as Halal-vetted individual stocks,” Hash explained.
Nonetheless, what is striking is that the demand for Shariah compliant investments is growing. Fortunately, there has been some progress made to address the lack of Islamic financial instruments.
In fact, recent government consultations and policy proposals such as those in the federal budget aim to foster a more inclusive financial landscape by supporting the development of Halal mortgages and other Islamic finance products.
“It is encouraging that these steps have been taken by the authorities, as it should help ensure that investments and savings for Muslim Canadians are increasingly aligned with their ethical and religious values,” explained Hash.
In the past, the Canadian financial system had been slow to adapt to the needs of a diverse population. This was partly attributed to the fact that there was a limited availability of Islamic financial products as well as the fact that regulatory frameworks were not designed with Shariah compliant structures in mind.
Elaborating further, Hash said: “It is especially important as the evolving landscape suggests that, while there are significant success stories, further innovation and policy support are needed to ensure full financial inclusion for all members of the community.
“It is also significant since Canada is going through an intergenerational wealth transfer from baby boomers to Gen X’s and millennials. It is estimated that CA$1 trillion (US$687,13 billion) will be passed on to next generation. In case of Muslim investors we have to make sure that the process is Halal.”
Investment growth opportunities are particularly relevant in areas such as mutual funds, exchange-traded funds and Sukuk.
Hash observes that the Muslim community possesses the wealth but oftentimes, they lack the expertise in identifying Halal products to invest into. “So, the majority of them are still investing in non-Halal options because they don’t know what else exists out there.”
Estimated to hit 2.7 million by 2030, around 50-60% of Canada’s Muslim population of two million are in the middle- to upper-class bracket. Many Muslim Canadians, particularly those established in professional and entrepreneurial sectors, have achieved a level of financial wellbeing that can be characterized as upper middle class.
Yet, some segments face challenges not only in accessing conventional financial services but also in finding products that respect their religious principles. The recent emergence of Halal mortgages, Shariah compliant investment portfolios and ongoing policy efforts are promising signs that the financial needs of Muslim Canadians are beginning to be met more comprehensively.
