Halal Investment Screener

Investing in stocks can be halal if the company passes Shariah compliance screening. The company must not be in a prohibited sector (alcohol, gambling, conventional banking, etc.), its debt ratio should be below 33% of market capitalization, and interest income should not exceed 5% of total revenue. This screener checks all these criteria for you.

A stock is Shariah-compliant when it passes three main screens: (1) Business activity — the company does not derive significant revenue from haram activities. (2) Financial ratios — total debt / market cap < 33%, interest income / revenue < 5%, liquid assets / market cap < 33%. (3) No involvement in prohibited sectors like gambling, alcohol, pork, or conventional interest-based banking.

Scholars differ on cryptocurrency. Those who permit it argue it functions as a medium of exchange (like fiat money). Those who prohibit it cite excessive speculation (gharar) and lack of intrinsic value. If investing in crypto, avoid leveraged trading and speculative tokens. Consult a scholar familiar with Islamic finance for your specific situation.

AAOIFI (Accounting and Auditing Organization for Islamic Financial Institutions) sets globally recognized Shariah standards. Their stock screening criteria include: total debt / market cap must be under 30%, interest-bearing deposits / market cap under 30%, and revenue from prohibited activities under 5%. This screener uses these widely-accepted thresholds.