Pioneering Halal Investment with Al Mabrook:An Interview with Fahad Siddiqui, CEO of Al Mabrook

Blending the principles of Shariah with innovative blockchain technology, Al Mabrook Investment stands as a beacon in Islamic fintech. Earlier today, The Halal Times staff had the privilege of speaking with its visionary CEO, Mr. Fahad Siddiqui, to glean insights into this pioneering venture in halal investments. Let’s dive into the journey of Al Mabrook Investment and the future of Shariah-compliant finance in North America and elsewhere.

Q: Mr. Siddiqui, can you start by briefly describing your journey that led to the founding of Al Mabrook Investment?

Fahad: During my Islamic banking career, I witnessed two major pain points within the industry: 1) the Human capital gap, and this is why TAIF was founded back in 2020 to address the gap and have received two awards Alhumdulillah 2) Community-oriented ready-in-box shariah compliant solution which is affordable, scalable and quick to deploy system to empower communities to expand their business, create jobs and return profits to their community members (investors).

Q: How would you define Al Mabrook Investment’s marketing strategy, especially considering the unique nature of Islamic fintech in Canada?

Fahad: We maintain a robust presence on social media platforms to diligently cultivate brand recognition. In addition, we have a series of podcasts aimed at disseminating valuable insights. Looking ahead, we are strategically orchestrating a targeted marketing campaign slated for launch in late Q4 of 2023. Our ongoing efforts involve active collaboration with industry experts through webinars, where our objective is to enrich our audience with valuable knowledge and insights.

Q: How does Al Mabrook Investment plan to educate potential investors about the benefits and intricacies of Sharia-compliant investing?

Fahad: We currently have ongoing posts and podcasts that touch upon Mabrook’s commitment to Shariah compliance. We eagerly anticipate obtaining our Shariah compliance certification, and once secured, we plan to provide our community with comprehensive insights, including detailed product structuring. Meanwhile, we are actively disseminating educational podcasts, posts, and videos, and very soon will be hosting webinars across various social media platforms.

Q: Who do you identify as your primary target audience? And how does Al Mabrook Investment intend to reach and engage this audience?

Fahad: Our primary target audience is individuals looking to invest in Shariah-compliant asset classes, for example, commercial or residential real estate, but who cannot afford to buy. However, they are looking for such opportunities in the market to invest their savings to gain fair profits and start building their portfolio. Mabrook solves this problem by allowing an ordinary retail investor to invest with as little as $100.00.

Q: Given the vision of Al Mabrook Investment, are there any plans for expansion beyond Canada?

Fahad: Canada, being a highly regulated market, gives Mabrook more control over the project and ensures safety for our investors; at the first stage, we will hand-pick profitable and stable opportunities in Canada before expanding in other markets. We do have a plan to expand across the Americas, Europe, and the Middle-east

Q: Why did you incorporate blockchain technology, and how do you see this benefiting your stakeholders?

Fahad: Blockchain is a perfect fit for tokenizing real-world assets for several reasons, including:

• Fractional Ownership of Shariah-compliant assets. Such assets are traditionally illiquid, meaning in our real-estate example, a property can be divided into smaller, tradable tokens, which are easily affordable to our target market.
• Transparency: blockchain offers a transparent and immutable ledger. All transactions are recorded and auditable on the blockchain, providing a clear ownership history.
• Efficiency: Traditional real-asset transactions involve numerous intermediaries and manual processes. Mabrook has streamlined these processes by using smart contracts, automating many aspects of transaction processing, and reducing operational costs.
• Accessibility to Mabrook’s investors: Tokenization makes it easier for Mabrook investors to access different asset classes that were previously inaccessible due to geographical or affordability constraints.
• 24/7 Trading: Blockchain-based real estate tokens can be traded 24/7 into other decentralized exchanges (DEX), providing investors greater flexibility and liquidity.
• Mabrook’s Global Reach: Blockchain tokenization enables global investment in real-world assets. Investors worldwide can participate in real asset ownership or trade tokens, increasing market reach.

Q: Are there any challenges you’ve faced in blending traditional Shariah principles with cutting-edge technology like blockchain?

Fahad: Since Blockchain itself is very new, we took the challenge of setting up shariah control embedded in our smart contracts for the first time to build a tokenization platform that provides a safe and shariah-compliant environment to both our Issuers and Investors.

Q: Can you delve deeper into the importance of AAOIFI accounting standards for Al Mabrook Investment and how this ensures Shariah compliance?

Fahad: For Mabrook, as with any Islamic financial institution, financial reporting standards play a critical role in evaluating the shariah compliance of its operations. In the first phase, Mabrook is complying with AAOIFI standards which emphasizes compliance with Islamic Shariah and its objectives, including information on prohibited earnings and expenditures and providing information to assist in determining Zakah.

AAOIFI has developed a framework to provide the basis for financial accounting standards for Islamic financial institutions. The Framework serves three purposes: 1) establishing a common framework for accounting and financial reporting, 2) reflecting the unique relationship between IFIs and their parties, and 3) meeting the specific information needs of users of financial reports of IFIs. Such a framework was developed by considering various factors in line with the key objectives of financial accounting and reporting.

The AAOIFI standards require the disclosure of information on Mabrook’s Islamic finance products (i.e., Ijarah Musharakah, Wakala, etc.), distinguishing between various trade modes and financing arrangements.

Q: How does Al Mabrook Investment intend to foster and cultivate a sense of community collaboration within Canada’s Muslim community?

Fahad: Mabrook fosters community collaboration within the global Muslim community by upholding Shariah principles and providing an inclusive platform for ethical investments. Through transparent practices and financial education, Al Mabrook empowers individuals to participate in community projects, such as Canadian real estate, promoting halal wealth creation and financial literacy. Additionally, Al Mabrook maintains active Telegram and WhatsApp groups, fostering a supportive unit where people can exchange ideas, seek advice, and collaborate on investment opportunities, strengthening community among its members. Furthermore, we will host engaging community competitions, encouraging members to invite friends and family to join our platform. Through these initiatives, participants have the opportunity to win exciting rewards, fostering a vibrant and supportive community environment. Stay tuned to follow all our social media and groups for more details on how you can participate and contribute to our community’s growth!

Q: What makes Al Mabrook Investment’s opportunities stand out in terms of profitability and security?

Fahad: Mabrook is already working on identifying target shariah-compliant asset classes such as real estate, ESG or sustainable investments, pharmacy, clinics, halal restaurants, Islamic schools, and halal food businesses, to name a few. We will assess local projects, index them based on profitability, and present them to the community to start investing.

Q: With investment options starting as low as $100, how do you ensure these investments remain both halal and profitable?

Fahad: Yes, In’sha’Allah, with the right intention, we are going to scrutinize each project, including Shariah compliance and potential return on investment, to ensure they are both Halal and profitable. A complete model will be presented to the community to ensure all questions are answered before the investment decision to exercise transparency and avoid ambiguity.

Q: What criteria does a project need to meet before being listed on Al Mabrook Investment’s platform?

Fahad: At a high level, the company must be in operation for at least 12 calendar months. KYC, AML, and Criminal and bankruptcy checks will be done at the initial level for all directors of the company before running financial due diligence on the company. At least two references from the community will be interviewed, and a physical site visit will be conducted before the company is approved to roll out the funding campaign on the Mabrook platform.

Q: How has the journey been collaborating with regulators to ensure complete compliance with local and international laws?

Fahad: This is the most complex workstream we have. A quick answer: it’s a work in progress. Blockchain adaptation is still very new, and regulators are working hard to legalize the operations. It’s been over nine months since we have worked with different lawyers; we have a dedicated team of legal and compliance experts ironing out the local and international regulatory compliance work. Results are still not concluded, but In’sha’Allah, we expect some firm updates at the start of next year.

Q: Given the unique blend of fintech, blockchain, and Shariah principles, are there any regulatory challenges you’ve had to navigate?

Fahad: We are blessed with Scholars and Islamic finance experts like Mufti Ismail Desai and Mufti Yousuf Sultan, who are helping us to structure the products by the grace of Allah SWT; we are successful and can align shariah with regulatory requirements.

For the first time, I am taking this opportunity with esteemed Halal time to announce, In’sha’Allah, the Mabrook team is working on the first-ever Islamic finance-tailored blockchain course, which will provide greater and more detailed insight to the Islamic finance professional, and they will be able to learn from experience. They can extend their skill set to roll out similar or other blockchain applications. We also announce a 30% discount for the first 10 Halal Times consumers, using the coupon #halaltimes. (Please spell the code out in an interview)

Q: Given your rich history at Dubai Islamic Bank and consultancy roles with IBM and Scotiabank, how have those experiences influenced the creation and management of Al Mabrook Investment?

Fahad: I say it without any Pride (Kibr/Fakhr). May Allah SWT forgive and protect me from any Riya. It is only Allah SWT mercy and bounties; Dubai Islamic Bank has introduced me to the Islamic Finance world and has trained me on setting up operations in various countries, managing large teams, Islamic retail products development and marketing, its processes, and shariah-compliant core banking system, while my career with Scotiabank and IBM US has exposed me to organize and implementing multi-million payment modernization and Hard tech projects. The combined knowledge of both has enabled me to execute Al Mabrook Investment.

Q: Are there any lessons from your tenure at these organizations that you’ve applied to ensure Al Mabrook Investment’s success and sustainability?

Fahad: Yes, my experience with these multinational corporations has helped me nurture my skill set in both Shariah principles and technology, most importantly, how to implement Good governance practices to build a highly complex technology stack. Effective governance processes are critical to meet software roadmap objectives and adhere to quality, security, and compliance standards.

Thank you, Mr. Siddiqui, for shedding light on the revolutionary work being done by Al Mabrook Investment. Your commitment to both technology and ethics is truly commendable, and we’re excited to see the impact Al Mabrook Investment will have on the global Islamic financial landscape.