Halal Investment Screener

A stock is considered halal if the company's primary business is permissible (not alcohol, gambling, pork, conventional finance, etc.) and its financial ratios pass Shariah screens — typically debt-to-market-cap below 33%, interest income below 5%, and impermissible revenue below 5%. Companies failing these thresholds are considered non-compliant.

AAOIFI (Accounting and Auditing Organization for Islamic Financial Institutions) sets widely adopted Shariah screening criteria. Their standard evaluates a company's business sector, debt ratio, interest-bearing deposits, and impermissible income against defined thresholds. It is used by Islamic funds, banks, and screeners worldwide as a benchmark for halal investing.

It depends on the fund's holdings. A conventional ETF that tracks the S&P 500 will include non-compliant companies (banks, alcohol, etc.), making it impermissible. However, Shariah-compliant ETFs exist — they pre-screen holdings to exclude haram sectors and purify any residual impermissible income. Always check the fund's screening methodology.

Scholarly opinion is divided. Those who permit it argue crypto is a digital asset with real utility and market value. Those who prohibit it cite excessive speculation (gharar), lack of intrinsic value, and potential for harm. Many scholars allow it with conditions: avoid highly speculative tokens, do not use leverage, and ensure the project has genuine utility. Consult a qualified scholar for your situation.