Manzil and Alpaca Launch Shariah-Compliant Investment for US Muslims

In a groundbreaking move for Islamic finance in the United States, Manzil, a Canadian Islamic fintech pioneer, has partnered with Alpaca, a U.S.-based self-clearing broker-dealer, to launch Manzil Invest USA, a digital investment platform tailored specifically for American Muslims. Announced on July 15, 2025, this initiative marks a significant step toward addressing the financial needs of the growing Muslim population in the U.S. by offering Shariah-compliant investment solutions that align with Islamic principles. This collaboration combines Manzil’s expertise in halal financial products with Alpaca’s robust brokerage infrastructure, creating a seamless and accessible platform for Muslim investors seeking ethical, faith-based wealth-building opportunities.

A Growing Need for Shariah-Compliant Investments

The Muslim population in the United States, estimated at over 3.45 million according to a 2020 Pew Research Center report, represents a diverse and economically significant demographic. With a purchasing power that exceeds $170 billion annually, Muslim Americans are increasingly seeking financial products that align with their religious and ethical values. Shariah-compliant investing adheres to Islamic law, which prohibits investments in industries such as alcohol, tobacco, gambling, and weapons, as well as practices involving interest (riba) or excessive uncertainty (gharar). Despite the growing demand, the U.S. has historically lacked accessible, technology-driven platforms catering to these needs, leaving many Muslim investors underserved.

Manzil, founded in 2017 in Toronto, has built a reputation as Canada’s first Islamic fintech company compliant with the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI). Its mission is to provide halal financial solutions, including mortgages, investments, wills, and savings products, to Muslim consumers. The launch of Manzil Invest USA extends this vision to the U.S., addressing a critical gap in the market. As Khurram Agha, Chief Investment Officer and head of Manzil USA, noted in a recent interview with BetaKit, “Muslim Americans have a lot of purchasing power, but the fintech investment platforms that meet their needs are few and far between.”

Strategic Partnership with Alpaca

The partnership with Alpaca, a Financial Industry Regulatory Authority (FINRA)-registered broker-dealer, is central to the success of Manzil Invest USA. Alpaca’s brokerage infrastructure API provides the technological backbone for the platform, enabling seamless account creation and trading capabilities. Unlike traditional investment platforms, Alpaca’s self-clearing model allows for greater efficiency and scalability, which is critical for delivering Shariah-compliant financial products to a broad audience. Yoshi Yokokawa, CEO and Co-founder of Alpaca, emphasized the significance of this collaboration, stating, “Our partnership with Manzil underscores Alpaca’s commitment to fostering financial innovation and accessibility. We are excited to support Manzil’s vision for inclusive finance by providing the infrastructure they need to deliver Shariah-compliant investment opportunities to millions of Muslims in the United States.”

This partnership builds on Alpaca’s recent efforts to expand Shariah-compliant offerings globally. Just days before the Manzil announcement, Alpaca partnered with ZAD, a Kuwait-based investment platform, to provide Shariah-compliant U.S. stocks and ETFs to investors in the Gulf Cooperation Council (GCC) region. These initiatives reflect a growing global demand for Islamic finance, with assets surpassing $5.5 trillion in 2024 and projected to reach $7.5 trillion by 2028, according to Standard Chartered.

Features of Manzil Invest USA

Manzil Invest USA is designed to make investing accessible, efficient, and compliant with Islamic principles. The platform allows users to open accounts with minimal friction, enabling them to start investing in as little as five to 10 minutes. This user-friendly approach is particularly appealing to younger Muslim investors, including millennials and Gen Z, who are increasingly exploring Shariah-compliant financial products. According to a 2024 Global Islamic Finance Forum report, over 21% of Muslim millennials have started exploring halal investment portfolios, provided they are transparent and Shariah-screened.

The platform offers a range of Shariah-compliant investment options, including:

• U.S. Stocks and ETFs: Carefully screened to exclude companies involved in haram (forbidden) industries such as alcohol, tobacco, gambling, or weapons.

• Halal Mutual Funds: Diversified funds that adhere to Shariah guidelines, providing exposure to ethical industries.

• Asset-Backed Investments: Structured to avoid interest-based transactions, aligning with Islamic principles of risk-sharing and fairness.

• Low-Cost Trading: Competitive fees to ensure accessibility for investors of all income levels.

• Mobile Accessibility: A refined mobile app that simplifies account management and trading on the go.

These features are supported by Alpaca’s robust API, which ensures secure and efficient transactions. The platform’s Shariah compliance is overseen by Manzil’s team of Islamic finance experts, ensuring that all investments meet AAOIFI standards.

Acquisition of Aghaz Investments

Manzil’s entry into the U.S. market was facilitated by its acquisition of Aghaz Investments, a U.S.-based Islamic fintech startup, in 2024. This strategic move provided Manzil with Aghaz’s team, technology, and SEC registration as a Registered Investment Advisor. Over the past eight months, Manzil has transformed these assets into Manzil Invest USA, a rebranded, mobile-first platform designed to meet the needs of Muslim American investors. The acquisition also brought Khurram Agha, Aghaz’s former CEO, to Manzil, where he now leads the U.S. operations. Agha’s expertise in Islamic finance and his vision for inclusive financial solutions have been instrumental in shaping the platform.

The acquisition aligns with Manzil’s broader goal of becoming “the halal version of Wealthsimple,” a Canadian robo-advisor known for its user-friendly investment platform. By combining Aghaz’s U.S. market knowledge with Manzil’s experience in Shariah-compliant finance, the company is well-positioned to capture a significant share of the growing Islamic finance market in the U.S.

The Broader Context of Islamic Finance

The launch of Manzil Invest USA comes at a time when Islamic finance is gaining traction globally. The industry, valued at over $4 trillion, is driven by demand from Muslim-majority countries such as Saudi Arabia, Malaysia, Kuwait, and the UAE, as well as growing markets in Southeast Asia and Africa. In the U.S., the increasing diversity of the workforce and the doubling of the Muslim population between 2001 and 2021 (from 2% to 4.9% of the total population) have created a fertile ground for Shariah-compliant financial products.

Other recent developments in Islamic finance underscore this trend. For example, Binance, the world’s largest cryptocurrency exchange, launched Sharia Earn on July 10, 2025, a multi-token staking platform certified by Amanie Advisors. Available in 29 countries, including the UAE and Saudi Arabia, Sharia Earn allows Muslim investors to earn passive income from cryptocurrencies like BNB, ETH, and SOL in a halal manner. Similarly, in Pakistan, BankIslami and ZLK Islamic Financial Services have partnered to promote riba-free banking, highlighting the global push for ethical, faith-aligned financial solutions.

Challenges and Opportunities

Building a Shariah-compliant investment platform presents unique challenges, particularly in ensuring compliance with Islamic law while integrating with modern financial systems. For instance, margin trading and options trading, which are common in conventional finance, must be restructured as asset-backed lending models to avoid riba. Manzil and Alpaca have addressed these challenges by leveraging Alpaca’s scalable Broker API, which allows for customized financial products that adhere to Shariah principles.

The opportunities, however, are immense. With nearly three in 10 Muslim Americans born in the U.S. and a significant portion immigrating from countries like Pakistan, Iran, and Morocco, the demand for accessible, Shariah-compliant investment options is expected to grow. Moreover, the rise of fintech platforms has lowered barriers to entry, enabling smaller investors to participate in wealth-building opportunities. Manzil’s focus on low-cost, mobile-first solutions positions it to capture this market, particularly among younger, tech-savvy Muslims.

Community Impact and Future Prospects

Manzil Invest USA is more than a financial platform; it represents a commitment to financial inclusion and empowerment for Muslim Americans. By providing halal investment options, Manzil is enabling a historically underserved community to build wealth in alignment with their values. The platform’s emphasis on transparency, ethical investing, and accessibility resonates with the broader principles of Islamic finance, which prioritize fairness, risk-sharing, and social responsibility.

Looking ahead, Manzil aims to expand its offerings in the U.S., potentially including halal mortgages and savings products similar to those offered in Canada. The company’s partnership with Alpaca also opens the door to further innovations, such as Shariah-compliant margin trading and high-yield cash accounts, which are already being developed in collaboration with ZAD in Kuwait. As the Islamic finance market continues to grow, Manzil Invest USA is poised to become a leader in the U.S., offering a model for how fintech can bridge faith and finance.

The launch of Manzil Invest USA in partnership with Alpaca marks a pivotal moment for Islamic finance in the United States. By addressing the unique needs of Muslim American investors, Manzil is not only filling a critical gap in the market but also setting a new standard for inclusive, ethical financial solutions. With its user-friendly platform, Shariah-compliant investment options, and strategic partnership with Alpaca, Manzil is well-positioned to empower a new generation of Muslim investors to achieve their financial goals while staying true to their faith.