Canadian Muslim investors seek Shariah-compliant RRSPs

CBC News – February 27, 2012

The deadline for RRSP contributions is nearing, but there’s another important investment concern for Muslims — ensuring the products they rely on for their retirement income comply with Islamic principles.
With nearly a million Muslims in Canada, forming nearly three per cent of the country’s population, there has been an emphasis over the last decade in investment products that adhere to the strict dictates of Shariah law.
As a devout Muslim, Mohammad Khalid, a retired economist living in Oakville, Ont., says Muslims must be careful about their investments, such as securities and equities. Khalid, who manages his own portfolio, invests in sectors such as mining, forestry and technology, and is helping his older children save for their retirement. He says that unless Muslim investors are careful about where their money is going, they could end up in non-compliant products.
A testament to the growing interest in Shariah-compliant investing is Standard & Poor’s introduction of its Shariah stock index (S&P/TSX 60 Shariah Index) into the Canadian market in 2009. The index recategorizes equities on the S&P/TSX 60 and excludes all equities that do not comply with Islamic law, which is based on the Qur’an.

International Financial Centres Battle for Islamic Markets

International investment services compliant with Islamic financial law are competing for a slice of the oil revenue in the Middle East. With the price of crude oil almost doubling in the last year, countries with large Muslim populations and connections – including Singapore, Hong Kong, London, Birmingham and Paris – are vying to act as key centres of expertise in the new boom. A spokesperson for the British Standard & Poor’s claims that, “By preparing the ground for Islamic finance, France can help financial innovation and benefit from the deep pockets of Middle Eastern investors as liquidity has dried up elsewhere in the global financial markets.”

Generally, more and more businesses have come forward to meet demand for Shariah-compliant services. Approximately two-thirds of the world-wide market for Islamic bonds (sukuks), an estimated $100 billion, is currently based in Malaysia, where the industry first took off. Outside of Asia and the Middle East, Britain in particular, is seen as the clear leader, worth about $6.5 billion.

International Financial Centres Battle for Islamic Markets

International investment services compliant with Islamic financial law are competing for a slice of the oil revenue in the Middle East. With the price of crude oil almost doubling in the last year, countries with large Muslim populations and connections – including Singapore, Hong Kong, London, Birmingham and Paris – are vying to act as key centres of expertise in the new boom. A spokesperson for the British Standard & Poor’s claims that, By preparing the ground for Islamic finance, France can help financial innovation and benefit from the deep pockets of Middle Eastern investors as liquidity has dried up elsewhere in the global financial markets. Generally, more and more businesses have come forward to meet demand for Shariah-compliant services. Approximately two-thirds of the world-wide market for Islamic bonds (sukuks), an estimated $100 billion, is currently based in Malaysia, where the industry first took off. Outside of Asia and the Middle East, Britain in particular, is seen as the clear leader, worth about $6.5 billion.