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Executive Summary

Wahed (Wahed Inc.) is a global financial technology company offering Shariah-compliant investment services through an online platform and mobile app. Founded in New York in 2017, Wahed’s mission is to make “Halal investing made simple” – providing accessible, diversified portfolios that are free from interest (riba) and unethical industries . The company operates as a robo-advisor targeting Muslim and ethically-conscious investors worldwide, allowing clients from all income brackets to invest according to Islamic finance principles. All investments are rigorously screened by a Shariah Supervisory Board to ensure compliance with Islamic law (no dealings with alcohol, gambling, etc., and no interest-based income) . Wahed offers diversified portfolios of halal assets (including stocks, Sukuk bonds, gold, and other Shariah-compliant securities) and has even launched its own halal index funds/ETFs. Today, Wahed serves clients in over 130 countries with offices in the US, UK, and UAE . It holds regulatory licenses in multiple jurisdictions (U.S., U.K., Malaysia, and others) to ensure compliant operations. Notably, in Canada Wahed’s services are available via its global platform, but the company does not yet have a local Canadian regulatory license . Canadian investors can open accounts with Wahed, though the offerings and account types differ slightly from those in markets where Wahed has a direct presence. The report below provides a comprehensive overview of Wahed’s business model, products, global reach, and operations – with a special focus on its status and offerings in Canada – complete with references to official and regulatory sources.

Company Overview: Mission, Target Audience & Core Services

Wahed’s Mission and Ethos: Wahed’s core mission is to provide an efficient and ethical investment platform that aligns with Islamic values. In Wahed’s own words, its goal is to “eradicate Riba (usury) and champion a riba-free financial future,” delivering halal returns to clients . The company is aimed primarily at investors seeking ethical, Shariah-compliant opportunities – a demographic largely underserved in many Western markets . By targeting Muslim investors (as well as non-Muslims interested in ethical finance), Wahed addresses a niche where compliant investment options were previously scarce or expensive . Wahed’s research found many such investors kept wealth in cash or real estate due to lack of halal investment products, leading to poor diversification . Wahed’s platform was created to solve this problem by making halal investing accessible online.

Business Model & Core Services: Wahed operates as a discretionary portfolio manager (robo-advisor) that manages client funds in line with a chosen investment portfolio. Clients sign up through Wahed’s app or website, complete a suitability questionnaire, and are assigned a risk-appropriate portfolio which Wahed then manages on a discretionary basis . The portfolio management service is fully automated and overseen by professionals – clients deposit funds and Wahed handles the asset allocation, stock/bond selection, and periodic rebalancing. Unlike self-directed brokerage, Wahed bundles everything into a seamless service: it selects halal investments, monitors them, and rebalances quarterly, charging a single wrap fee (details in a later section). This is appealing for novice investors or those who prefer hands-off investing. Wahed does not provide individualized investment advice or stock picking tips; instead, it offers pre-designed model portfolios and general financial tools .

Target Audience: Wahed’s marketing emphasizes inclusion of investors “from all income brackets” and a user-friendly experience . A minimum of $500 USD opens an account , making it accessible compared to many traditional wealth managers. Its primary audience is Muslims who want to invest without compromising their religious values, though Wahed also frames its approach as ethical investing that can attract any value-driven investor. According to Reuters, Wahed was “the first robo-adviser to cater to Muslim investors through a sharia-compliant platform” when it launched . This faith-based niche is large – e.g. an estimated 4 million Muslims in the U.S. alone, many of whom are affluent – but was underserved by mainstream finance . By focusing on halal, socially responsible investing, Wahed effectively positions itself similarly to a conventional robo-advisor, but with all products vetted for Islamic compliance.

Services and Features: In addition to its investment portfolios, Wahed has introduced features tailored to its Islamic audience. For example, the platform provides an automatic Zakat calculator and annual purification reports . “Purification” refers to identifying any incidental non-compliant income (for instance, minor interest earnings from cash holdings) and suggesting it be donated to charity, thereby purifying the remainder of the investment . Wahed’s portfolios are also periodically rebalanced (quarterly) to maintain target allocations . These services are included in the management fee. Wahed’s value proposition is a one-stop halal investing solution – users get a professionally managed, globally diversified portfolio that adheres to strict Islamic guidelines, with convenience and transparency.

Investment Products and Islamic Finance Compliance

Shariah-Compliant Portfolios: Wahed’s main product is a set of diversified investment portfolios constructed in accordance with Islamic finance principles. All portfolios are fully Shariah-compliant, meaning they exclude any investment in prohibited industries or instruments. An independent Ethical Review/Shariah Board monitors Wahed’s investments to ensure they remain aligned with Islamic values . As a result, “the investment company cannot involve [itself with] liquor, firearms, gambling or tobacco industries, nor can they generate [income from] interest” (riba) . Instead of conventional interest-bearing bonds, Wahed uses Sukuk, which are Islamic bonds structured as profit-sharing or asset-backed notes. Wahed’s portfolios thus contain a mix of equities and Sukuk, and may also include halal alternatives like gold or real estate investment (via Shariah-compliant funds) to enhance diversification . According to a Canadian finance publication, “Wahed Invest is a Sharia-compliant robo-advisor available globally… They exclusively offer Halal investment portfolios including Sukuk (Islamic bonds) and Sharia-compliant stocks.” In practice, this means Wahed clients invest in a blend of stocks and fixed-income that have passed stringent Islamic screens.

Portfolio Options: Wahed typically offers several risk-profiled portfolios, from very conservative to very aggressive. Each contains different proportions of asset classes. For example, an aggressive portfolio might be almost all equities (halal stocks in the U.S. and international markets), whereas a conservative portfolio might be primarily Sukuk and cash. Wahed’s disclosures illustrate these allocations: a “Very Conservative” model might be ~99% Sukuk (for capital preservation), while a “Very Aggressive” model could be ~99% equities . Middle risk portfolios include mixes of U.S. stocks, global stocks, Sukuk, plus a small allocation to gold (a tangible asset often included for diversification) . This multi-asset approach aligns with Islamic investment guidelines and modern portfolio theory, aiming to balance risk and return. All included stocks are screened against Shariah criteria (for permissible business activities and financial ratios), using indexes or screening tools that filter out non-compliant companies . Notably, Wahed launched a Halal Stock Screener app in 2018 that allowed users to check the Shariah compliance of thousands of stocks , reflecting the company’s commitment to transparency in the screening process.

Wahed’s ETFs and Funds: In addition to the core managed accounts, Wahed has developed its own exchange-traded funds (ETFs) to expand halal investment offerings. In July 2019, Wahed introduced the Wahed FTSE USA Shariah ETF (ticker: HLAL) – the first Shariah-compliant equity ETF listed in the United States . This fund tracks a Shariah-screened index of U.S. stocks, allowing investors (including non-Wahed clients) to invest in a broad halal stock basket via the Nasdaq exchange. More recently in 2022, Wahed launched the Wahed Dow Jones Islamic World ETF (ticker: UMMA), which invests in Shariah-compliant equities from international (non-U.S.) markets . These ETFs underscore Wahed’s product strategy of offering low-cost, index-based vehicles aligned with Islamic principles. They also feed into Wahed’s portfolios – Wahed often uses its proprietary ETFs as building blocks within client portfolios (e.g. the HLAL ETF for U.S. equity exposure), but does not “double-dip” on fees when doing so . In other words, if Wahed includes its own fund in a portfolio, it rebates or avoids charging the fund management fee on top of the robo-advisor fee . This practice keeps costs transparent and compliant with ethical expectations.

Beyond ETFs, Wahed’s portfolios may hold other Shariah-compliant mutual funds or commodity holdings. For instance, a small allocation to physical gold is included in several portfolio models , since gold is considered a halal asset and a hedge against inflation. Wahed does not use any leverage or derivatives that would violate Islamic rules. It also forgoes securities lending or margin trading on client accounts, as those could generate interest or excessive uncertainty (gharar). Overall, Wahed’s investment products are designed to mirror conventional diversified portfolios (stocks and bonds mix) but replace non-permissible elements with halal equivalents. This approach has been compared to socially responsible investing: “Islamic investment products use filters to adhere to religious guidelines such as bans on tobacco, alcohol and gambling, in much the same way as socially responsible funds” . The result is a spectrum of portfolio options that cater to different risk appetites while remaining within the bounds of Islamic law.

Compliance Oversight: Wahed’s adherence to Islamic finance standards is overseen by its Shariah Supervisory Board, comprised of qualified Islamic scholars. This board certifies that Wahed’s products and processes meet AAOIFI Shariah standards. For example, they review the ETF indices, the purification methodology, and the selection of Sukuk. Wahed discloses that it conducts annual purification of any impure income and provides guidance for Zakat (annual almsgiving on wealth) – features that traditional investment firms typically do not offer. These compliance measures ensure that devout Muslim investors can trust the platform. It’s worth noting that Wahed’s model portfolios also undergo ongoing rebalancing and monitoring. If a particular stock in the portfolio were to become non-compliant (say a company takes on excessive debt or enters a forbidden business line), Wahed would remove or replace that holding to maintain Shariah purity. This active monitoring is a key part of Wahed’s service, sparing clients from having to track compliance issues themselves. In summary, Wahed’s investment products are distinguished by being 100% halal by design, combining modern robo-advisory with Islamic ethical constraints to deliver a unique value proposition in the investment landscape .

Global Reach and Operations

Geographic Footprint: Since its inception, Wahed has rapidly expanded its global presence. As of 2022, Wahed reported serving over 300,000 customers worldwide . The platform is accessible in 130+ countries, making it what Wahed calls the “first globally-accessible halal robo-advisor” . Wahed is headquartered in New York City, with regional offices in Washington D.C., London, and Dubai to manage operations across different markets . Key milestones in its geographic expansion include:

• United States (2017): Wahed’s launch market. The U.S. remains a primary focus, with Wahed Invest LLC based in New York and serving as an SEC-registered adviser for U.S. clients . Here Wahed offers taxable brokerage accounts as well as retirement accounts like Halal IRAs (Individual Retirement Accounts) , catering to the needs of American Muslim investors.

• United Kingdom (2018): Wahed expanded to the UK in 2018, becoming one of the first Islamic robo-advisors in Britain . In the UK, Wahed is authorized by the Financial Conduct Authority (FCA) and offers its service under a local entity (Wahed Invest Ltd). It even supports tax-advantaged wrappers like the Stocks & Shares ISA (Individual Savings Account) for its UK clients . Wahed’s UK operations are notable for partnering with a domestic custodian: client assets in the UK are held by WealthKernel Ltd, which acts as Wahed’s custody and ISA manager . This partnership illustrates how Wahed adapts to local financial infrastructure while maintaining overall control of the investment strategy.

• Malaysia (2019): Wahed entered Malaysia as its first foray into Asia. The Malaysian Securities Commission granted Wahed a license as the country’s first Islamic Digital Investment Manager (robo-advisor) in October 2019 . Launching in Malaysia was strategically important, as Malaysia is a majority-Muslim country with a mature Islamic finance sector. Wahed’s Malaysian subsidiary (Wahed Technologies Sdn. Bhd.) is regulated by the SC and operates under Malaysia’s Digital Investment Management framework . Through this entity, Wahed offers its platform to Malaysian residents in local currency (MYR), integrated with local banks. Winning Malaysia’s first Islamic robo-advisor license was a significant validation of Wahed’s model .

• Middle East – UAE and beyond (2020–2022): Wahed has made inroads into the Gulf region, supported by investors from Saudi Arabia and the UAE. By 2020, Wahed received a license to operate in Saudi Arabia’s Fintech Lab (and reportedly was developing a Saudi subsidiary) . In 2022, Wahed officially launched in the United Arab Emirates, establishing its regional hub in Abu Dhabi . Wahed’s UAE operation is conducted under the Abu Dhabi Global Market (ADGM) financial center: Wahed Invest Limited is authorized by ADGM’s Financial Services Regulatory Authority as an Islamic Financial Business . Under this license, Wahed can manage assets in a Shariah-compliant manner for UAE residents. Wahed uses Abu Dhabi Commercial Bank as the custodian bank for UAE client assets . The presence in ADGM allows Wahed to passport its services to other Gulf countries and MENA region as regulations permit. The company has also signaled plans to expand into other Muslim-majority markets like Indonesia, India, Nigeria, and the Central Asia (CIS) region .

• Other Regions: Wahed’s services are available (often in a limited capacity) in numerous other countries via its global platform. According to the company, it can onboard residents of dozens of countries across Europe, Africa, and Asia where local law doesn’t prohibit it . Additionally, Wahed has obtained regulatory approvals in several jurisdictions to facilitate future growth. For example, Wahed is registered with the Financial Sector Conduct Authority (FSCA) in South Africa, has an license from the Astana Financial Services Authority (AFSA) in Kazakhstan, and is approved by regulators in India (SEBI) and Indonesia (OJK) . These approvals, as reported, mean Wahed is legally permitted to offer investment services in those countries, reflecting a broad strategy to operate in key Islamic finance markets . Wahed also holds a license in Mauritius (from the FSC) , possibly as an international investment platform for certain regions. In sum, Wahed has built a global operational network, mixing fully localized services in some countries with a generalized “Global” offering for others.

Operational Adaptations: While Wahed’s core product (halal diversified portfolios) is consistent globally, the company tailors its operations to local market requirements:

• Regulatory Structure: In each country where Wahed formally operates, it does so via a locally regulated entity or in partnership with one. For instance, in the UK, Wahed Invest Ltd is directly FCA-regulated (FRN 833225) , but actual investment management and execution is delegated to a UK-licensed partner (WealthKernel) for efficiency . Wahed retains responsibility to the client but leverages WealthKernel’s existing brokerage platform to handle trade execution, custody, and ISA administration . This structure allowed Wahed to enter the UK market faster by using an established custodian while meeting all FCA rules on client asset protection.

• In the UAE (ADGM), Wahed runs its own licensed firm and has a direct arrangement with a local bank for custody , as noted earlier. In Malaysia, Wahed operates through a locally incorporated company with a Digital Investment Manager license , complying with Malaysia’s specific guidelines for robo-advisors (such as limits on certain asset types and required local Shariah advisors).

• Localized Products: Wahed also adapts the account types and services to each region. In the U.S., it offers Halal retirement accounts (e.g. rollover 401k and IRA accounts) to capture Muslim investors saving for retirement in a Shariah-compliant way . In the U.K., it offers the Stocks & Shares ISA and even a Junior ISA, which are tax-sheltered accounts popular in the UK . These localized offerings are made possible by complying with local regulations and partnering with custodians as needed (e.g., WealthKernel is the official ISA manager in the UK for Wahed’s clients ). In Malaysia, Wahed’s app connects with local bank accounts via the national interbank GIRO system, and it offers portfolios in Malaysian ringgit tailored to local investor preferences.

• Cultural and Customer Support: With a global customer base, Wahed provides multilingual support and educational content on Islamic finance. Its website and app are offered in multiple languages (English, Malay, Arabic, etc.), and it frequently publishes articles on halal investing to raise awareness. Wahed’s branding also varies slightly by region to resonate with local audiences – for example, employing prominent Muslim athletes (like UFC champion Khabib Nurmagomedov and footballer Paul Pogba) as brand ambassadors to build trust .

• Scale and Technology: Because Wahed’s operations are largely digital, scaling to new countries is more about regulatory permission than physical infrastructure. Wahed uses a cloud-based platform that can onboard users from many jurisdictions remotely. This allowed it to claim “globally accessible” status early on. A 2020 TechCrunch report noted that at that time Wahed had over 100,000 clients globally and aimed to secure regulatory approval in 20 countries as part of its expansion plan . By 2022, the client count had tripled, reflecting successful expansion in multiple regions . The company’s goal is to continue entering new markets, especially those with large Muslim populations, in a compliant manner.

In summary, Wahed now spans North America, Europe, Asia, the Middle East, and Africa through a mix of local licenses and cross-border services. It has proven agile in navigating different regulatory environments to offer a fairly uniform product (halal portfolio investing) with local tweaks. This global reach is underpinned by significant fundraising – e.g., a $25 million Series A led by Saudi Aramco’s venture arm in 2020 to fuel international growth . Wahed’s worldwide operations make it a leading player in Islamic fintech, with an ambition to become a universal halal investment platform accessible to Muslims in any country.

Regulatory Status and Licenses in Key Markets

From a regulatory standpoint, Wahed maintains compliance by obtaining the necessary licenses or registrations in the jurisdictions where it actively operates. Below is an overview of Wahed’s regulatory status in key countries:

• United States: Wahed Invest LLC is registered with the U.S. Securities and Exchange Commission as an SEC-Registered Investment Advisor (RIA) . This registration permits Wahed to offer investment advisory services (including automated portfolio management) to U.S. clients. As an RIA, Wahed must adhere to SEC regulations and fiduciary standards. It does not hold customer assets directly; instead, client brokerage accounts are held with Apex Clearing Corporation, a FINRA/SIPC member that acts as Wahed’s custody and execution partner in the U.S. . Apex provides the brokerage infrastructure (trade execution, account statements, etc.), while Wahed provides the advisory overlay. U.S. client assets are thus protected by SIPC insurance (up to $500,000) through Apex, similar to other U.S. robo-advisors. Wahed is not a broker-dealer itself in the U.S., which is why it piggybacks on Apex’s licenses for trading. The SEC registration is crucial – Wahed makes clear it “does not intend to offer or solicit” customers in jurisdictions where it’s not registered , underscoring that it abides by U.S. laws and only engages non-U.S. clients via appropriate exemptions or separate entities.

• United Kingdom: In the UK, Wahed operates via Wahed Invest Ltd, which is an appointed representative and now directly an FCA-authorised firm. Wahed Invest Ltd is authorised and regulated by the Financial Conduct Authority under Firm Reference Number 833225 . This authorization allows Wahed to provide discretionary investment management services in the UK. Under its FCA permissions, Wahed offers its robo-advisory product to UK residents, including management of Stocks & Shares ISA accounts (as noted earlier). Notably, Wahed’s UK entity outsources the actual portfolio management implementation to WealthKernel (an FCA-regulated investment firm) as a sub-advisor/custodian . WealthKernel executes trades and safeguards assets, while Wahed focuses on client acquisition, portfolio design, and overall responsibility to clients. U.K. clients’ cash and investments are held in custody under FCA client asset rules (typically protected by the FSCS scheme up to £85,000). The FCA license signals that Wahed met local capital, compliance, and disclosure requirements. Being FCA-regulated also means Wahed must provide risk warnings (the FCA classifies this type of investing as high-risk) and adhere to UK rules on marketing financial products.

• Malaysia: Wahed’s Malaysian subsidiary, Wahed Technologies Sdn. Bhd., is licensed by the Securities Commission Malaysia (SC) as a Digital Investment Manager. License number eCMSL/A0359/2019 was awarded in 2019 . This made Wahed the first Shariah-compliant robo-advisor in Malaysia . Under Malaysian law, Digital Investment Manager licensees are allowed to offer automated discretionary portfolio management to the public. The SC’s framework also requires Shariah certification for Islamic offerings – Wahed complies through its Shariah board and was granted an Islamic fund management permission as part of its license . Malaysian regulation imposes certain limits (for example, a cap on leverage and requirements on technology risk management), which Wahed adheres to. Wahed Malaysia must file reports to the SC and is subject to local audits and oversight. Malaysian investors’ funds are custodied with a local trustee as per SC rules. Overall, Wahed’s licensure in Malaysia is a strong indicator of regulatory robustness, as the SC is known for stringent standards. It also reflects Malaysia’s openness to fintech innovation in Islamic finance.

• Abu Dhabi / United Arab Emirates: Wahed obtained a license in the Abu Dhabi Global Market (ADGM) – an international financial free zone in the UAE. Wahed Invest Limited (ADGM) holds a Financial Services Permission from the ADGM’s Financial Services Regulatory Authority (FSRA) to operate as an Islamic Financial Business . The permission covers Managing Assets and Arranging Custody in a Shari’a-compliant manner (FSP No. 220065) . Being regulated in ADGM means Wahed meets the UAE’s financial regulations for fintech, including having a local office and compliance staff in Abu Dhabi. The ADGM license allows Wahed to sign up clients in the UAE (and potentially broader GCC, subject to cross-border rules). Under this framework, Wahed uses Abu Dhabi Commercial Bank (ADCB) as the custodian for client assets , ensuring that customer funds and securities are held with a reputable local bank under FSRA supervision. Wahed’s activities in the UAE must conform to both the FSRA’s rules and Shariah governance – ADGM actually has specific provisions for Islamic finance which Wahed follows. The ADGM authorization is an important part of Wahed’s regulatory footprint since it covers the Middle East region where many of its target users reside.

• Other Notable Jurisdictions: Wahed’s strategy has included securing regulatory footholds in various countries:

• In Saudi Arabia, Wahed was approved in 2018/2019 to join the Saudi Arabian Monetary Authority (SAMA) regulatory sandbox, and by 2020 it had received a license to operate an investment advisory service (through the Capital Market Authority) on a trial basis . This was mentioned as part of Wahed’s plan to establish a Saudi subsidiary with support from Aramco’s investment arm.

• In India, Wahed has registration from the Securities and Exchange Board of India (SEBI) as an investment advisor . This suggests Wahed can offer services to Indian investors (likely high-net-worth or via a tie-up) in compliance with SEBI’s regulations.

• In Indonesia, Wahed is reported to be licensed or working under the Financial Services Authority (OJK) for Islamic investments . Indonesia is another large Muslim market targeted by Wahed.

• Wahed is also noted to be regulated by the Financial Services Commission (FSC) of Mauritius . Mauritius is sometimes used as a base for international investment operations in Africa/Asia, implying Wahed might use a Mauritius entity for certain cross-border offerings.

• In South Africa, Wahed has obtained approval from the Financial Sector Conduct Authority (FSCA) , enabling it to legally accept South African clients and market its services there.

The above demonstrates that Wahed proactively pursues proper regulatory status in each market rather than operating informally. According to Wikipedia (citing company and news sources), “Wahed is regulated in the following jurisdictions: SEC (USA), FCA (UK), SEBI (India), OJK (Indonesia), AFSA (Kazakhstan), SC (Malaysia), FSC (Mauritius) and FSCA (South Africa).” . This broad regulatory compliance helps build trust with users and authorities alike. It also ensures that Wahed’s customers are afforded some level of investor protection under local laws. For example, UK clients have recourse to the Financial Ombudsman and FSCS, Malaysian clients are protected by SC Malaysia’s investor safeguards, etc.

It’s important to note that in countries where Wahed is not licensed, it generally does not actively solicit clients . However, Wahed’s website does allow global sign-ups from many regions (including some where it has no on-the-ground license) – these are typically routed through one of Wahed’s licensed entities in another jurisdiction. Wahed’s terms state it will not accept clients in jurisdictions where that service would be unlawful . In practice, this means Wahed might restrict or terminate service to residents of certain countries under sanctions or with strict investor laws. The company’s FAQ lists over 130 countries from which it can onboard residents (ranging from Canada to countries in Africa, Asia, etc.) . Those clients likely contract with Wahed’s U.S. entity or another international entity on an advisory basis. This allows Wahed to have a wide reach, but it also means in some cases clients are investing under a foreign regulatory umbrella rather than a local one.

Fees and Transparency: A note on Wahed’s fee structure (which is a regulated disclosure aspect): Wahed charges a wrap fee for its portfolio management service. Globally, the standard fee is 0.49% per year of assets managed, plus a small fixed fee for smaller accounts . Accounts under $100,000 USD incur an additional $2.50 per month ($30/year) custody fee in some regions, bringing the total to effectively 0.99% or less for modest balances . Larger accounts ($100k and up) pay 0.49% with no fixed surcharge . Wahed’s fees are competitive with other robo-advisors and notably lower than fees charged by many actively managed Islamic funds . The company emphasizes that it does not charge performance fees or trade commissions, and it avoids layering fees when using its own ETFs . In jurisdictions like the UK and Malaysia, Wahed’s fee schedule has to be reviewed by regulators for fairness and clear disclosure, which it has been. Overall, Wahed’s regulatory compliance and licenses in multiple countries demonstrate a commitment to operating legally and transparently in the Islamic fintech space.

Wahed in Canada: Offerings, Operations & Regulatory Status

Availability of Service: Wahed does serve Canadian clients, but via its global platform rather than through a dedicated Canadian entity. Canada is on Wahed’s list of supported countries for onboarding , meaning Canadian residents can sign up on Wahed’s website or app. The experience for a Canadian user is similar to that of any global user: one can open an account online, complete the risk questionnaire, and have their funds invested in one of Wahed’s Shariah-compliant portfolios. However, Wahed has not yet launched a locally incorporated service in Canada. As one Canadian financial publication notes, “Wahed Invest is available globally, though not yet in Canada.” . This somewhat paradoxical statement highlights that while Canadians can technically use Wahed, the company does not have a Canadian regulatory license or office as of this writing. There is no “Wahed Canada” subsidiary registered as a portfolio manager or dealer in Canada’s securities regulatory system (a search of the Canadian Securities Administrators’ registrant database yields no Wahed entity, confirming the lack of local registration).

Regulatory Status in Canada: Because Wahed is not registered with Canadian provincial regulators, it is not directly overseen by IIROC/CIRO or any provincial securities commission. In practical terms, this means Wahed is operating under the radar of Canadian regulation by treating Canadian users as clients of a foreign entity (likely the U.S. SEC-registered Wahed LLC or the ADGM entity). This is a common approach for international robo-advisors testing a market; Canadian securities law provides certain exemptions that allow foreign advisors to take on a very limited number of Canadian clients under specific conditions (for example, the “international adviser exemption” for clients who are institutional or high-net-worth). It’s unclear which exemption Wahed relies on, but the absence of a Canadian license implies any Canadian using Wahed is engaging with an offshore service. Investor protections differ as a result: Client accounts are not covered by the Canadian Investor Protection Fund (CIPF), since Wahed is not a member of CIRO (the self-regulatory body for investment dealers in Canada). Instead, any asset protection would fall under the custodian’s regime (for instance, if Canadian accounts are held with Apex Clearing in the U.S., they’d be covered by U.S. SIPC insurance , but not CIPF). Similarly, Canadian clients would not have access to OBSI (Ombudsman for Banking Services and Investments) for dispute resolution, because Wahed is not a registered Canadian firm. They also would not receive Canadian-specific disclosures like the Fund Facts or relationship disclosure information mandated by CSA rules. Wahed likely includes in its terms that Canadian clients are contracting under foreign law (e.g., U.S. or ADGM law) and must acknowledge the different regulatory context.

In terms of regulatory developments, as of early 2025 there have been no public announcements of Wahed obtaining a Canadian license. This contrasts with some competitors; for example, U.S.-based ShariaPortfolio did establish a registered Canadian advisory firm (ShariaPortfolio Canada) a few years ago, and local Canadian firms (like Wealthsimple) have introduced halal investment options. Wahed’s choice not to register in Canada might be due to the cost and complexity of regulation for what is a relatively smaller Muslim population (~1.5 million) compared to the U.S. or UK markets. It could also be that Wahed is still evaluating partnerships or awaiting a larger user base before committing to Canadian operations. Until then, Canadians can and do use Wahed, but on a “use at your own risk” basis with respect to Canadian regulation. The company makes no specific marketing push in Canada – notably, its website does not list Canada as a region with bespoke services (unlike US, UK, Malaysia, EU, etc., which have dedicated pages), and there are no known partnerships with Canadian financial institutions.

Services for Canadian Clients: Canadian clients who sign up with Wahed have access to the same core services as global users: a choice of halal portfolios (very conservative to very aggressive), managed by Wahed’s team. The investment process is entirely online:

1. Account Setup: The client selects “Global” or the appropriate region on Wahed’s site (Canada currently falls under “Global”). They provide personal information, complete the risk tolerance questionnaire and verify their identity (likely providing passport/ID, since Wahed must comply with anti-money laundering rules even offshore).

2. Funding: Since Wahed has no Canadian domestic integration, funding an account likely involves an international bank transfer or wire. Clients would send money from their Canadian bank to Wahed’s designated custodian (possibly in the U.S. or ADGM). There may not be a CAD-denominated option – funds might need to be converted to USD (or another currency) to invest via Wahed, unless Wahed accepts CAD and converts it. This can incur forex costs for clients, which is a consideration. (Wahed’s documentation for global clients doesn’t explicitly list a CAD account; it’s an area of inconvenience compared to local Canadian robo-advisors.)

3. Portfolio Assignment: Once funds arrive, the client is assigned a portfolio based on their risk profile. For example, a middle-aged Canadian investor with moderate risk might get a “Moderate” portfolio containing roughly 50% in global equities (via halal ETFs like HLAL and perhaps other Shariah-compliant equity funds) and ~50% in Sukuk and gold . An aggressive Canadian investor would get more equity (including U.S. and emerging market stocks) , while a very conservative one would mostly hold Sukuk . These allocations are the same models used for other global clients.

4. Account Types: Importantly, Canadian users only have access to a standard taxable investment account with Wahed. Registered accounts like TFSA or RRSP are not available, because Wahed is not a Canadian financial institution or dealer that can create such accounts. Canadian law requires TFSA/RRSP to be administered by registered Canadian trust companies or dealers. Therefore, any investments with Wahed by a Canadian would be considered a normal investment account (and one held abroad, at that). This means Canadian investors would need to track and report any income (dividends, capital gains) from the Wahed account to the CRA on their own. There are no tax shelters on Wahed for Canadians, unlike say using a TFSA with a local provider. This is a significant difference from Wahed’s offerings in other countries (e.g., the IRA in the US or ISA in the UK) where they do integrate with local tax-advantaged accounts.

5. Management and Reporting: Wahed provides an online dashboard and app where Canadian clients can monitor performance, make additional deposits or request withdrawals. Portfolio rebalancing occurs automatically each quarter, and clients would receive periodic statements. All investments are in liquid securities, so clients can request withdrawal at any time. Wahed would liquidate the necessary holdings and return cash to the client’s bank (likely via wire transfer). Withdrawals to Canada might take several business days given international banking.

6. Fees: Canadian clients pay the same fee schedule as other global clients. Wahed’s fee for an account under $100k USD is 0.49% annually plus $60 USD per year . For example, if a Canadian invested $10,000 USD (~$13,500 CAD) with Wahed, the annual fee would be 0.49% of $10k ($49) + $60, totaling $109 (which is about 1.09% of the account value). For larger amounts, the flat $60 is waived above $100k. These fees are charged in USD. Wahed’s fee covers all trading commissions and services; the client does not pay additional custody or transaction fees. Compared to Canadian robo-advisors, this fee is a bit higher – many Canadian robo-advisors charge ~0.4% and no fixed fee – but Wahed’s unique service (halal focus) may justify it for those seeking Shariah compliance. It’s also still generally lower than fees for mutual funds or bespoke halal portfolio managers historically.

Differences from Local Canadian Offerings: In contrast to Canadian-based investment providers, Wahed in Canada lacks some conveniences. As noted, no TFSA/RRSP option is a drawback. Additionally, currency exchange is an implicit cost; Canadian investors may have to convert CAD to USD to use Wahed, whereas a local provider would allow staying in CAD. There’s also the matter of customer support and time zones – Wahed’s support for global users might be U.S. or UK based, so response times could be outside North American business hours. On the other hand, Wahed brings something novel to Canada: a fully managed Halal portfolio service. Before Wahed, Canadian Muslim investors had only a few choices: invest on their own in halal funds/ETFs, or use a Canadian advisor who might construct a halal portfolio (often at higher fees and higher minimums). Wahed provides an easy, app-driven solution. It’s worth mentioning that competition is slowly emerging: e.g., Wealthsimple (a major Canadian robo-advisor) introduced a Halal portfolio option and even launched the Wealthsimple Shariah World Equity Index ETF (WSHR) in 2023 as Canada’s first Shariah-compliant ETF . These moves indicate the Canadian market for halal investing is growing. Wahed’s presence, even if unofficial, has likely spurred these developments.

Partnerships and Local Integration: Currently, Wahed does not list any Canadian banking partnerships (such as integration with Interac e-Transfer or a Canadian custodian). Some fintechs entering Canada partner with a local IIROC dealer for custody, but Wahed has not announced such a tie-up. If Wahed were to fully launch in Canada, it might pursue registration as a Portfolio Manager with the Ontario Securities Commission (OSC) and other provincial regulators, or register as an Investment Dealer and join CIRO to be able to solicit retail investors. This would enable it to offer registered accounts and have CIPF protection. As of now, though, Wahed operates in a regulatory gray area in Canada – it is available to those who seek it out, but it’s not actively marketing or fully regulated domestically. Canadian users should understand they are effectively dealing with a foreign entity. Wahed’s client agreement likely specifies that any disputes are to be resolved in the jurisdiction of the entity (for example, U.S. law or ADGM law) , which is another difference from dealing with a Canadian firm.

Regulatory Outlook in Canada: Wahed’s expansion history suggests that when a market shows sufficient demand, the company moves toward proper licensing. If the Canadian Muslim investor segment grows or if Wahed sees significant assets coming from Canada, it may decide to formalize operations. This could involve opening a Toronto office and getting licensed as a restricted portfolio manager focusing on Islamic investing. To date, no such application is public. The Canadian regulators (like OSC and CSA) would likely welcome an innovative fintech that serves a niche need, provided investor protections are in place. For now, Canadian investors using Wahed should be mindful of the differences: their accounts are held outside Canada and not subject to Canadian regulatory oversight. This doesn’t inherently mean higher risk with Wahed’s management, but it does mean, for example, that Canadian law protections (CIPF insurance, binding arbitration through OBSI, etc.) do not apply. Any issues would have to be dealt with through Wahed’s internal processes or foreign courts.

Summary of Wahed’s Canadian Offering:

• Services: Halal robo-advisor portfolios (same models as global), accessible via web/app.

• Accounts: Personal (taxable) investment accounts only. No TFSA, RRSP, or RESP support. Account base currency likely USD.

• Fees: ~0.5% annual management fee; plus $60/year for balances under $100k (waived above $100k) . No trading commissions.

• Investments: Globally diversified, Shariah-compliant portfolios of equities and Sukuk. Likely uses Wahed’s ETFs (HLAL, UMMA) and other funds.

• Regulation: No Canadian regulatory registration. Service provided under Wahed’s foreign licenses (e.g., U.S. SEC RIA). Not a member of Canadian regulatory organizations.

• Custody: Assets held by third-party custodian (e.g. Apex Clearing in the U.S.) under foreign jurisdiction . Not held by a Canadian institution.

• Investor Protection: SIPC coverage via U.S. broker for cash/securities (up to $500k USD) – CIPF not applicable. No Canadian Ombudsman service.

• Differences: Cannot directly contribute in CAD without conversion; no local tax shelter; regulatory recourse is foreign. Conversely, offers a level of service (automated halal investing) not widely available from domestic Canadian firms.

For Canadian Muslims exploring Wahed, these factors should be weighed. Wahed’s advantage is delivering a proven halal investing solution and the backing of a global fintech, whereas the disadvantages revolve around its current unofficial status in Canada. Prospective users in Canada might want to monitor if Wahed obtains Canadian regulatory approval or partners with a local entity, which would enhance its offering (for example, enabling TFSA accounts in the future). Until then, Wahed remains a global Islamic fintech platform that Canadians can use, but not a Canada-regulated financial service .

Conclusion

Wahed has established itself as a pioneering halal investment platform with a clear mission to democratize Islamic finance for the masses. Its business model combines the automation and low-cost structure of robo-advisors with specialized Shariah oversight, effectively opening the door for Muslim investors to participate in global markets without compromising their beliefs. Wahed’s product suite – primarily diversified managed portfolios and affiliated halal ETFs – illustrates how ethical constraints can be integrated into modern investing. The company’s global expansion has been impressive: from its U.S. launch to gaining licenses across the UK, Malaysia, the Middle East and more, Wahed has built a presence in major financial hubs and emerging markets alike. It operates under reputable regulatory regimes including the SEC and FCA, providing credibility and oversight .

In Canada, Wahed’s footprint is still nascent. While Canadian residents can access Wahed’s services, the lack of local regulatory status sets this offering apart from Wahed’s other regional operations. Canadian clients effectively invest via Wahed’s foreign entities, which means the service comes with some limitations (no TFSA/RRSP, different investor protection frameworks). Wahed has not yet obtained approval from Canadian regulators to operate as a domestic advisor, which is an important consideration for users seeking full regulatory reassurance. Despite this, Wahed fills a valuable gap for Canadian investors seeking halal portfolios, and its entry (even indirect) has likely spurred growth of Islamic finance options in Canada.

Official sources and disclosures confirm Wahed’s commitment to Shariah compliance and regulatory adherence. The company’s licenses in multiple countries and its transparent disclosures (e.g., SEC filings, FCA authorizations, SC Malaysia license) demonstrate a level of seriousness and governance expected of a financial institution . As Wahed continues to grow, one can expect further localization of its services and possibly a formal Canadian launch if demand proves strong. For now, Wahed remains an innovative, globally-oriented halal investment platform that has successfully married fintech with faith-based investing. It offers Muslim investors worldwide – including those in Canada – a practical solution to grow their wealth in line with their values, thereby advancing the broader mission of ethical finance.

Sources: Official company disclosures and regulatory records were referenced in preparing this overview. Key references include Wahed’s website/FAQ , regulatory information from the FCA and ADGM , news reports from reputable outlets like Reuters and TechCrunch that detail Wahed’s expansion and licensing , and a Canadian financial publication confirming Wahed’s availability in Canada (albeit without local registration) . These sources provide a factual basis for the descriptions of Wahed’s business model, investment products, global operations, and status in Canada as of 2025. The information portrays Wahed as a compliant and forward-looking fintech firm, while also highlighting jurisdictional nuances relevant to Canadian users.

“indices: Halal investing made simple - Wahed ; Reuters – first robo-advisor for Muslim investors ; Wikipedia (Wahed) – Islamic principles and regulators ; Money.ca – Wahed’s global halal portfolios (not yet in Canada) ; Wahed Pricing page – features (Zakat, Purification, etc.) ; Wahed FAQ – countries served including Canada ; Wahed website – fee schedule ; FCA Register/Wahed UK legal – FCA authorization ; Wahed ADGM disclosure – ADGM license & custodian ; TechCrunch – Malaysia license (first Islamic robo) .”

Platform	ROI (Est. Avg. p.a.)	Fees (Management + Other)	Coverage (Assets)	Key Features	Availability
Wahed Invest	6%–10% (equities)	0.49%–0.99% + ETF fees (~0.50%)	Global ETFs, Sukuk, Gold	Robo-advisor, Sharia-certified	US, UK, UAE, MY, etc.
Islamicly	7%–12% (stocks/ETFs)	0.24%–0.75%	GCC & Global Stocks, ETFs	Direct stock investing, low fees	UAE, KSA, UK, US
Yielders (P2P)	5%–8% (fixed)	1%–2% service fee	UK/EU Property & SMEs	Rent-based profit, illiquid	UK, EU
Blossom Finance	4%–6% (sukuk)	0%–1% (varies)	Short-term Sukuk	Ethical projects, low minimum	US, Global
Saturna Capital(Amana Funds)	8%–12% (long-term)	0.75%–1.25% (fund fees)	US & Global Equities	DIY mutual funds, low-cost	US
Zoya(Screening)	N/A (DIY)	Free (premium features paid)	Global Stocks	Sharia stock screener	Worldwide

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