Halal Investment Screener
Check whether a stock is Shariah-compliant. Enter the business type and a few figures from the company's financials, and we'll run the standard activity and ratio screens.
How the screening works
Shariah scholars assess a stock in two stages. First the business-activity screen: the company's core business must be permissible — it cannot derive its main income from alcohol, gambling, conventional (interest-based) banking or insurance, pork, adult entertainment, tobacco or weapons. If it fails this, no ratio matters.
If the business is permissible, the financial screens check that the company isn't too dependent on interest:
- Debt ratio — interest-bearing debt ÷ market cap should be below ~30%.
- Liquidity ratio — (cash + interest-bearing securities) ÷ market cap should be below ~30%.
- Receivables ratio — accounts receivable ÷ market cap should be below ~49%.
- Impure income — non-compliant income ÷ total revenue should be below 5%.
If a small slice of income is impure, you "purify" your return by donating that same percentage of your dividends to charity.
Halal investing FAQs
Only if they hold screened, compliant companies. Dedicated Shariah-compliant ETFs and funds do this for you; broad conventional index funds usually include non-compliant stocks.
Scholars differ. Some permit utility-based tokens and avoid interest-bearing or purely speculative ones; others advise caution. Seek a qualified ruling for the specific asset.
Re-screen periodically. If a holding fails, most scholars advise exiting in a reasonable timeframe and purifying any impure gains.