According to Rahyafte(the missionaries and converts website)Considering the fact that “riba” or interest is prohibited in Islam, several religious Canadians are barred from obtaining mortgages or banking services. Due to this, many faithful have been forced to rent while saving enough for a down payment on a home.
Al Rashid has been working for years to find a means to overcome the financial barrier that has hindered Muslims from purchasing a property while being true to their beliefs. As a result, the Edmonton-based Canadian Halal Financial Corporation was established in December of last year.
The Al Rashid Fatwa committee designed the Sharia law-compliant program in collaboration with Thomas Lukaszuk, a former MLA and deputy premier, and Stainton, a lawyer, who are the key executives at the finance organization, to guarantee adherence with both Islamic practice and Canadian law. This Albertan Finance business operates as a partner in real estate purchase while charging fees to sustain profitability and building an Islamic loan program.
Before financing, each transaction is evaluated by the Al Rashid Fatwa committee to ensure that the purchase agreement does not involve interest.
Sharia-compliant finance varies from traditional banking in many ways, the most noteworthy of which being the restriction on collecting interest and investing in morally compatible enterprises.
Similar initiatives exist in other regions of Canada, but they have not received the same permissions and stringent control from Muslim authorities in Alberta. Despite this, hundreds of applications have already been completed.
In recent decades, Islamic finance has risen significantly over the world, becoming one of the fastest growing financial businesses. It’s worldwide assets now surpass $2 trillion and are forecast to reach $3.8 trillion by 2023.
