Halal Stocks in Canada Market as on 30th November 2023
Islamicly brings you yet another interesting blog on Shariah Compliant stocks in Canada that should comprehensively set you up with all the information on Halal Stocks in Canada. If you are a Shariah sensitive investor interested in trading stocks and equities listed on Canada’s stock exchange, then this blog is for you. Canada is one among those countries which are increasingly moving towards acceptance of Halal investment options.
Just a few years back, there was no market of Halal Stocks nor was there any mechanism of investing in stocks in a Shariah compliant manner in Canada. Moreover, there was real time tool or app with information on Halal stocks, even though Shariah compliant stocks were available in the capital markets of Canada. Alhamdulillah, now the situation has completely changed and you have enough information available on Halal stocks as well as a favorable environment in the country to make investments in Shariah Screened stocks.
Let us discuss some basic concepts that you must know about Shariah compliant investments in general before we deep dive
What is a Shariah Compliant investment?
Any investment that follows Shariah principles can be classified as Shariah compliant. Given the financial world we live in, structuring an investment in a Shariah compliant manner can be complex at times. Hence, Shariah scholars having expertise in finance have laid down certain rules and standards of Shariah compliant investing. The simplest way to begin your Shariah compliant investing is probably by starting with Shariah compliant equity investments.
What are Shariah Compliant Stocks / Halal Stocks?
In simple words, Investments in Shariah screened stocks are known as Shariah compliant or HALAL Stocks.
What is meant by Shariah Screened Stocks?
Shariah rules of investment in the equity of a company comes with certain exclusions. Shariah Screened stocks is the result of screening a listed company for such exclusions. Stocks of such companies that are not involved in or derive less than 5% revenue from prohibited business activities like alcohol, conventional financial services, gambling, pornography, tobacco, and conventional Media & Entertainment are considered to have passed the Shariah compliant business/sector screens.
Stocks passing sector checks need to pass the financial checks also. Those stocks passing sector checks as well as financial checks are considered to be Shariah screened Equities and investments in such shares and equities are permissible as per Shariah principles.
For detailed Shariah screening criteria please Check Here: Shariah Screening Criteria
As a small negligible part of your investment contains incomes from non-permissible business activities, the dividends you receive from such investments have to be purified in that proportion. You can read more details on How to Purify your Dividends in our previous blog.
We have also written a detailed blog on Shariah Compliant Stocks in USA, please do Check here: Shariah Compliant Stocks in USA
List of top 10 Companies in Canada by Market Capitalization and their Shariah Compliance status
(as on 30th November 2023)
| Company | Market Cap. | Compliance | Compliance Risk Factor |
|---|---|---|---|
| Royal Bank of Canada | $142.35B | Not Halal | Low (Not Likely to turn Compliant) |
| Toronto-Dominion Bank | $117.69B | Not Halal | Low (Not Likely to turn Compliant) |
| Canadian National Railway Company | $81.46B | Halal | Low (Not Likely to turn Non Compliant) |
| Enbridge Inc | $77.83B | Not Halal | Low (Not Likely to turn Compliant) |
| Canadian Pacific Kansas City Ltd | $73.42B | Halal | Medium (Less likely to turn Non-Compliant) |
| Canadian Natural Resources Ltd | $70.39B | Halal | Low (Not Likely to turn Non Compliant) |
| Bank of Montreal | $69.49B | Not Halal | Low (Not Likely to turn Compliant) |
| Thomson Reuters Corp | $66.11B | Halal | Low (Not Likely to turn Non Compliant) |
| Bank of Nova Scotia | $58.28B | Not Halal | Low (Not Likely to turn Compliant) |
| Alimentation Couche-Tard Inc | $55.43B | Not Halal | Low (Not Likely to turn Compliant) |
This is encouraging as 4 out of the top 10 largest stocks in Canada are Shariah compliant, and does boost the investors’ confidence looking for Shariah ways of investing.
How many Halal (Shariah Compliant) Stocks are there in Canada Market?
Many Islamic investors in the Canada do not know whether the stocks listed on Canada Stock Exchanges are Shariah Compliant. Yes, a lot of listed companies in Canada are doing HALAL business and they have been classified as Shariah-compliant. You will be surprised to know that more than 58% of total listed stocks in Canada comply with Shariah Principles, as you can see in the graph below:
Shariah Compliant Equities in Canada
Shariah Compliance of various business sectors in Canada.
Listed Companies in Canada Market can be classified into 16 business sectors, broadly. Sector wise Shariah compliance of companies listed in the Canada can be seen below:
Shariah Compliant Stocks in Canada based on Sector Wise
(as on 30th November 2023)
| Sector | Compliant | Not Compliant | Grand Total |
| Basic Materials | 441 | 79 | 520 |
| Capital Goods | 31 | 27 | 58 |
| Communications Services | 0 | 1 | 1 |
| Conglomerates | 1 | 0 | 1 |
| Consumer Cyclical | 12 | 10 | 22 |
| Consumer/Non-Cyclical | 21 | 28 | 49 |
| Energy | 73 | 61 | 134 |
| Financial | 17 | 91 | 108 |
| Gold & Silver | 1 | 0 | 1 |
| Healthcare | 76 | 82 | 158 |
| Investment Services | 1 | 0 | 1 |
| Misc. Financial Services | 0 | 1 | 1 |
| Services | 35 | 126 | 161 |
| Technology | 124 | 48 | 172 |
| Transportation | 10 | 10 | 20 |
| Utilities | 3 | 26 | 29 |
| Grand Total | 846 | 590 | 1436 |
About the Stock Exchange in Canada
The Toronto Stock Exchange – TSX is also known as Bourse de Toronto in Canada. The exchange is the world’s 9th largest stock exchange by market capitalization.
The Toronto Stock Exchange is among the oldest and one of the largest in North America. It was established in 1861 and is a full subsidiary company of TMX Group.
TSX is one of the exchanges managed by its parent company TMX Group. Those exchanges are:
1. Montreal Exchange
2. Toronto Stock Exchange.
3. TSX Venture Stock Exchange
4. TSX Alpha Exchange
5. Shorcan
Halal investment options in Canada
There are certain halal investment options available in Canada such as:
1. Wealth Simple Halal Portfolio
2. Global Oman Fund
3. Halal ETF
4. SPUS ETF – S&P 500 ETF that includes only Shariah compliant stocks.
5. Zoya App for Stocks Screening. This app is trying to offer Shariah compliant screening for stocks listed in USA and Canada. The last we checked it was in beta stage.
General condition of the Halal Market in Canada
Finding Halal Food and HALAL slaughtered meat in Canada has become more accessible now that Zabiha and Halal meat is available everywhere be it on the street or super market.
Today’s Canada is changing and is home to various companies offering halal and Shariah solutions in finance (stocks and mutual funds), tourism, trade, food and lifestyle.
You can also find the Halal meat in Canada with some nice and famous brands like Mina Halal and Hero Burger. More details about the Zabiha certificate is available Here
As the Halal Market in Canada is firming up, there has been a few of Halal initiatives emerging in Canada. One of them is a trade show with innovative ideas to attract Shariah sensitive investors to cater their Shariah compliant investment needs.
The EXPO HUT played an important role to get the HALAL market emerge in Canada.
About Canada
Canada is a beautiful country surrounded by tall Mountains and sprawling sea bordering three oceans: the Pacific on the west, the Arctic to the north, and the Atlantic on the east. Canada has the 2nd largest land area, the 7th largest nominal per capital income, and is ranked 13th highest in the human development index.
The biggest beauty of Canada is it’s multicultural, multilingual and is renowned for its warm welcome to immigrants. The population of Canada is 37.68 million while the Muslim population is 1.054 million which is around 2.8% of total population. If you are someone who is looking for migration, then Canada is an option for you. The migration rate to Canada is 6.38% which is the 8th highest in the world. Canada’s capital is Ottawa. Toronto, Montreal, and Calgary are its largest cities. Canada shares its longest border with USA.
How Islamicly will help you get benefitted from Halal Stocks.
Islamicly App is a credible solution that gives you well researched Shariah compliance information on Stocks listed in Canada and gives instant results. You name the stock, put it in the search box, Islamicly App will tell you the Shariah status. What you are waiting for? Download the App and start investing Islamicly!
