Latest news with #AccountingandAuditingOrganizationforIslamicFinancialInstitutions
Time Business News
19-05-2025
- Business
- Time Business News
Halal Investing in Canada: Navigating Ethical Finance for Muslim
As interest in values-based investing grows, many Muslim investors in Canada are exploring financial strategies that align with Islamic principles. Halal investment in Canada provides a framework for pursuing financial goals while adhering to Islamic values—emphasizing ethical conduct, risk-sharing, and the avoidance of prohibited activities. This article offers an overview of halal investment options in Canada—including its foundations, investment vehicles, regulatory landscape, and some of the key platforms facilitating access to Sharia-compliant markets. Halal investing involves selecting financial products and services that comply with Islamic law. Investments must avoid: Interest-based income (riba) High uncertainty or speculation (gharar and maysir) Industries considered unethical, such as those involving alcohol, tobacco, gambling, pornography, or conventional banking Compliance is often verified through screening methodologies based on standards set by organizations like the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI). Investments may be reviewed by Sharia advisory boards or scholars for guidance. The Canadian market now offers a broader range of halal-compliant investment options, thanks in part to the development of Islamic finance and fintech. Equities and ETFs , post Sharia screening , post Sharia screening Sharia-compliant mutual funds Sukuk (Islamic bonds) (Islamic bonds) Gold and certain commodities Real estate , when structured without interest-based financing , when structured without interest-based financing Islamic savings accounts Private equity and venture capital, under Sharia-compliant structures Traditional interest-bearing bonds and loans Interest-accruing savings accounts Derivatives and speculative instruments (e.g., forex, binary options) Several platforms in Canada and North America now offer tailored access to halal portfolios. These include Wealthsimple, WahedInvest, Manzil, and ShariaPortfolio, among others. Investors also increasingly work with specialized advisors, such as Canadian Islamic Wealth, to build portfolios aligned with both ethical and financial objectives. Private equity and venture capital are emerging as areas of interest for Muslim investors looking to support early-stage companies aligned with ethical principles. These investments, while generally higher risk, can be structured in accordance with Sharia by ensuring that underlying business models and financial terms are compliant. Platforms such as focus on providing access to Sharia-compliant startup investments. These services typically include ethical screening, compliance reviews, and collaboration with Islamic scholars to evaluate investment terms. While venture capital is not suitable for all investors, it is becoming a more recognized component of a diversified halal investment strategy—particularly for those seeking long-term participation in sectors like healthcare, sustainability, and technology. Despite expanding interest and infrastructure, halal investing in Canada still faces several notable challenges: Limited Sukuk access : Most Sukuk are issued internationally and are not easily available through domestic financial institutions. : Most Sukuk are issued internationally and are not easily available through domestic financial institutions. Shortage of trained advisors : Few professionals have expertise in both conventional investing and Islamic finance principles. : Few professionals have expertise in both conventional investing and Islamic finance principles. Misconceptions about performance : Some investors associate ethical screening with reduced returns, despite evidence that Sharia-compliant indices can perform comparably to broader markets. : Some investors associate ethical screening with reduced returns, despite evidence that Sharia-compliant indices can perform comparably to broader markets. Need for education: Greater awareness around halal investment standards, portfolio construction, and due diligence practices remains essential for both investors and advisors. Halal investing continues to grow as a subset of the broader responsible investing movement in Canada. While it addresses the specific needs of Muslim investors, many of its principles—transparency, fairness, and ethical conduct—resonate more widely across diverse investor groups. Access to platforms such as along with the development of Sharia-compliant fintech and advisory services, suggests a growing infrastructure that can support long-term growth in the sector. As halal investing evolves, it remains rooted in the idea that financial decision-making can be both principled and productive – balancing religious obligations with modern financial tools. TIME BUSINESS NEWS
Daily Tribune
23-04-2025
- Business
- Daily Tribune
Ahli United Bank participates in AAOIFI 23rd Annual Shari'a Boards Conference
A delegation of Shari'a supervisory representatives from Ahli United Bank Group recently concluded its participation in the AAOIFI 23rd Annual Shari'a Boards Conference, organized by the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) in cooperation with the Central Bank of Bahrain and held in Bahrain. AUB's participation stems from its keenness to develop the Islamic banking industry and continue supporting the advancement of financial products and services in compliance with Shari'a rules and principles, as the conference is one of the most prominent gatherings of Shari'a scholars and decision-makers to discuss various topics and developments in the Islamic financial industry worldwide. The conference convened Shari'a scholars, leaders, and experts in the Islamic finance industry, alongside senior officials from central banks and supervisory authorities. Across five panel discussions held over two days, the conference explored the Shari'a aspects pertinent to the Islamic finance industry, focusing on Shari'a governance frameworks for its institutions. The event also featured several live and virtual dialogue sessions where prominent figures in Islamic finance presented their visions for the industry's development, addressing challenges in upholding Shari'a principles in transactions and tackling current issues. Following this, four workshops were conducted, focusing on the governance and financial accounting standards issued by AAOIFI. AUB Group's participation in the conference represented an opportunity to exchange ideas, visions, and concepts with leading specialists in the Islamic banking industry, and to review the most important issues and topics in Islamic banking that require practical solutions and applications, especially that the Islamic banking sector needs continuous research and development efforts to address various issues facing its development. AAOIFI, established in 1991 and based in Bahrain, is the leading international not-for-profit organization primarily responsible for development and issuance of standards for the global Islamic finance industry. It has issued a total of 100 standards in the areas of Shari'a, accounting, auditing, ethics, and governance for international Islamic finance. It is supported by a number of institutional members, including central banks and regulatory authorities, financial institutions, accounting and auditing firms, and legal firms from over 45 countries. Its standards are currently followed by leading Islamic financial institutions across the world and have introduced a progressive degree of harmonization to International Islamic finance practices.
Daily Tribune
22-04-2025
- Business
- Daily Tribune
Ahli United Bank Concludes Participation in AAOIFI 23rd Annual Shari'a Boards Conference
A delegation of Shari'a supervisory representatives from Ahli United Bank Group recently concluded its participation in the AAOIFI 23 rd Annual Shari'a Boards Conference, organized by the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) in cooperation with the Central Bank of Bahrain and held in Bahrain. AUB's participation stems from its keenness to develop the Islamic banking industry and continue supporting the advancement of financial products and services in compliance with Shari'a rules and principles, as the conference is one of the most prominent gatherings of Shari'a scholars and decision-makers to discuss various topics and developments in the Islamic financial industry worldwide. The conference convened Shari'a scholars, leaders, and experts in the Islamic finance industry, alongside senior officials from central banks and supervisory authorities. Across five panel discussions held over two days, the conference explored the Shari'a aspects pertinent to the Islamic finance industry, focusing on Shari'a governance frameworks for its institutions. The event also featured several live and virtual dialogue sessions where prominent figures in Islamic finance presented their visions for the industry's development, addressing challenges in upholding Shari'a principles in transactions and tackling current issues. Following this, four workshops were conducted, focusing on the governance and financial accounting standards issued by AAOIFI. AUB Group's participation in the conference represented an opportunity to exchange ideas, visions, and concepts with leading specialists in the Islamic banking industry, and to review the most important issues and topics in Islamic banking that require practical solutions and applications, especially that the Islamic banking sector needs continuous research and development efforts to address various issues facing its development. AAOIFI, established in 1991 and based in Bahrain, is the leading international not-for-profit organization primarily responsible for development and issuance of standards for the global Islamic finance industry. It has issued a total of 100 standards in the areas of Shari'a, accounting, auditing, ethics, and governance for international Islamic finance. It is supported by a number of institutional members, including central banks and regulatory authorities, financial institutions, accounting and auditing firms, and legal firms from over 45 countries. Its standards are currently followed by leading Islamic financial institutions across the world and have introduced a progressive degree of harmonization to International Islamic finance practices.
Biz Bahrain
06-02-2025
- Business
- Biz Bahrain
Sukuk Market Will Likely Have More Time To Adopt AAOIFI Standard 62, Report Says
At the beginning of February, the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) held a couple of public hearings on Sharia Standard 62. In S&P Global Ratings' view, this standard will shape the future of the sukuk market. (See 'Sukuk Brief: More Time To Adopt AAOIFI Standard 62') The AAOIFI will likely give issuers more time to implement Sharia Standard 62. In its public hearing over the weekend, the AAOIFI mentioned that it is likely to approve Standard 62 in 2025, and that issuers will likely have between one and three years to implement the new requirements, depending on the AAOIFI's final decision. 'Depending on the final timeline that the AAOIFI gives the market, this development could give sukuk structurers more time to develop structures that strike a balance between complying with the new requirements and making the sukuk attractive to fixed-income investors, if this is still possible,' said S&P Global Ratings credit analyst Mohamed Damak. 'However, the adoption of the standard could cause a decline in sukuk issuance,' Mr. Damak added. If adopted as proposed, Sharia Standard 62 will, in our view, result in the sukuk market shifting away from structures in which the sukuk sponsors' contractual obligations underpin their repayments, to structures in which the underlying assets have a more prominent role. Notwithstanding the fact that issuers will have more time to adjust to the new requirements, investors will likely face new risks relating to asset performance and value. We continue to believe that if the standard is adopted as proposed, some investors and issuers may choose alternatives to the sukuk market, as issuing sukuk might become more onerous from a risk/reward perspective. This could also encourage some adopters to transition away from the standards if their ability to tap the capital markets is significantly restricted.
