Could you provide a brief journey of how you arrived where you are today?
UM Financial was a vision to bring quality competitive Islamic financial services to the Canadian Muslim market. As the founder, a business plan was put together and over 100 institutions were approached, showing them the growth of Islamic finance in the US and UK and the potential for the Canadian market.

Our first major contract was a credit union for a Mudarabah commercial facility which we used for Musharakah Islamic mortgages. The pilot started at US$4 million in early 2005 that grew to US$100 million by the end of 2006 in only 18 months.

What does your role involve?
Managing a staff of close to 20 which includes divisions of real estate, legal, investment, retail banking, residential financing, commercial financing and product development. To further grow the industry, much of my time is spent in media interviews and speaking at Islamic finance conferences.

The three largest Canadian newspapers all covered our growth in Islamic finance on the front pages in 2007, bringing much attention to the growing Islamic finance industry that our company is servicing.

What is your greatest achievement to date?
We’re not quite there yet… to reach the US$100 million mark in Islamic retail financing. Many other conventional major banks and mutual funds tried to launch products targeting the close to one million Muslim market in Canada but initial products were all discontinued due to lack of demand.

Being a company formulated from within the community and knowing the dynamics, we have succeeded in proving that as Islamic finance has grown international, there is a tangible demand within Canada.

Which of your products/services deliver the best results?
Islamic mortgages at the grassroots local market have been most rewarding as a significant number of Muslims desire to have a house but want it structured in a Shariah compliant manner. Over the years, we have added Islamic investments and deposit products, and we are working on many other Islamic financial products for the community.

What are the strengths of your business?
A community-based, strong team that can communicate at a grassroots level. We have achieved many firsts: the first competitive Islamic mortgage product, first Islamic deposit product, first Islamic finance Shariah supervisory board, the Canadian sole representative as members of Islamic Financial Services Board (IFSB) and the Accounting & Auditing Organization for Islamic Financial Institutions (AAOIFI).

What are the factors contributing to the success of your company?
An untapped Islamic mortgage market, where we created a competitive Islamic mortgage product. High immigration numbers to Canada, which has a Muslim population that is doubling every 10 years.

What are the obstacles faced in running your business today?
The concentration of financing in a few large institutions in Canada with much red tape. Foreign institutions are not attracted due to Canadian real estate returns of residential (6%) and commercial (8%). Canadian institutions are still hesitant to venture into Islamic finance, especially in view of the recent failure of products launched by major Canadian institutions.

Where do you see the Islamic finance industry, maybe in the next five years?
The Islamic finance explosion at the grassroots level. Islamic finance retail demand penetration in most markets is only 1% to 3%, and with a tenfold increase, would bring Islamic finance to the true forefront.

Name one thing you would like to see change in the world of Islamic finance?
Islamic finance sticking to its roots of promoting trade, equal distribution of wealth and keeping ethical principles ahead of profit motivation. Also have the media stop quoting individuals who disagree with Islamic finance. Not all Muslims eat halal meat, nor do all Jews eat kosher but a significant portion do for religious reasons. We should analyze those who desire the products, not the naysayer of an industry.

UM is a premier Canadian Islamic finance corporation. The company secured a US$120 million facility from Credit Union Central of Ontario in 2004, which was used to finance Shariah compliant real estate residential properties in Canada.

It has structured Shariah compliant banking deposit products with McMaster Savings and Credit Union. UM is the Canadian representative for two of the largest Islamic finance associations: IFSB based in Malaysia and AAOIFI based in Bahrain.