Fintech company Manzil is to roll out in two weeks an Islamic robo-investment platform that will mark its first US product and then make a debut of real estate investment trusts, or REITs, in its Canadian home base.
The offerings are central to the strategy of the Ontario-based Manzil to more than double assets under management (AuM) at the firm, from a current US$100 million to US$250 million by the end of 2025 and US$500 million by 2026.
Manzil started as a Shariah compliant mortgage platform in 2020, diversifying into activities that included a Halal prepaid Visa card run in partnership with Toronto fintech firm Koho and the writing of Islamic will services by Muslim Will, which it acquired later.
Manzil also bolstered its wealth management capability with the 2024 takeover of Canadian Islamic Wealth.
Now, the company is setting its sights south of the Canadian border. After acquiring US-based Avaz Invest in 2024 and rebranding it as Manzil Invest, it is preparing to launch within the next week or two a robo-investment platform that will be operational across all the 50 US states.
“Over the last three years, our focus has been really on product expansion,” Group CEO and Co-Founder Mohamad Sawwaf told IFN Investor in an interview.
“Our focus right now is just on the Manzil Invest platform, which is a robo-investment advisory platform.”
A robo-adviser, or automated investment adviser, provides algorithm-driven financial planning and investment management with minimal human supervision.
Mohamad said Manzil Invest’s activities will largely mirror that of its Canadian parent, with initial thrust on investment accounts and exchange-traded funds before expansion into mortgage and consumer banking products.
The US unit will also attempt to differentiate itself by focusing on specific themes not covered by rival services, while offering competitive pricing, attractive risk-adjusted returns and Halal standards benchmarked to the AAOIFI.
“Young, energetic and ready”
The foray into unrivaled spaces will see Manzil as a group exploring opportunities in commercial financing for religious structures like mosques, as well as social causes such as community centers and other not-for-profit projects.
The company is also laser focused on the growth potential in Shariah compliant REITs, Mohamad said.
“When it comes to real estate demand, it’s really, really high in both Canada and the US. There are lots of Muslims who want to get into those markets because growth and equity in real estate is very, very stable, with very strong growth potential.”
While Manzil has yet to offer Islamic REITs anywhere in North America, it plans to introduce them in Canada over the next 12 to 18 months. This, the company, estimates could easily add US$50 million to US$100 million to its AuM within a year.
The REIT offerings, providing fractional ownership in physical real estate, align with Manzil’s broader strategy of doubling its AuM to US$250 million by the end of 2025 and reaching US$500 million by 2026.
Key to the REIT growth strategy will be geographic expansion within Canada that targets markets beyond Ontario, Alberta, Quebec and British Columbia, and the securing of enough retail and institutional distribution partners to help demand for the products to scale.
Mortgage deployment — the process of originating, underwriting and allocating loans to property borrowers — also plays to Manzil’s strength as mortgage has been its biggest business since launch, doubling in size annually, Mohamad said.
With a team of approximately 20 employees aged between 30 and 45 years, Mohamad said Manzil was poised to tap into the growing market for Shariah compliant financial services in both Canada and the US.
“We are young, energetic and ready.”
