Issues and Challenges Faced by Islamic Financial Institutions in Canada

Abstract

Despite the fact that Canada is a major and important host for Muslim individuals, that it has a long history welcoming Muslims and that it generally respects minority rights, religions and cultures, Islamic Finance is still at its infancy stage in the country. This paper aims at studying the reasons of this stagnant stage including the issues and challenges behind these reasons. After a thorough study done with managers of Islamic Financial Institutions in Canada, different issues and challenges emerged. These are connected in some cases and independent in others with the major ones being Government inertia towards Islamic Finance, Muslim community inertia towards asking for their rights as well as the failure of some Islamic Financial Institutions.