Halal Stock Screener - AAOIFI Compliance
Screen stocks for Shariah compliance using AAOIFI standards. Check debt ratios, interest income, and business activities to find halal investments.
وَأَحَلَّ اللَّهُ الْبَيْعَ وَحَرَّمَ الرِّبَا
"Allah has permitted trade and forbidden interest."
— Surah Al-Baqarah (2:275)
Select a Stock to Screen
These are sample stocks with pre-loaded financial data for demonstration.
AAOIFI Screening Criteria
Financial Ratios (All must be < 33%)
- • Debt Ratio: Total Debt / Market Cap
- • Interest Securities: Interest-bearing investments / Market Cap
- • Receivables: Accounts Receivable / Market Cap
Income Screening (< 5%)
Impermissible income (interest, gambling revenue, etc.) must be less than 5% of total revenue. Any such income must be purified through charity.
Impermissible Business Activities
Companies primarily engaged in these activities are not Shariah-compliant:
Alcohol
Production, distribution, or sale of alcohol
Tobacco
Tobacco products manufacturing
Gambling
Casinos, betting, lottery
Conventional Banking
Interest-based financial services
Conventional Insurance
Non-Takaful insurance
Pork & Non-Halal Food
Pork products or non-halal meat
Adult Entertainment
Pornography and related content
Weapons & Defense
Arms manufacturing (disputed)
Music & Entertainment
Music production (disputed by some scholars)
💡 Tips for Halal Investing
- • Use certified screeners: Services like Zoya, Islamicly, or Wahed screen thousands of stocks.
- • Check regularly: A company's compliance status can change with its financial position.
- • Purify dividends: Donate the impermissible portion of dividends to charity.
- • Consider ETFs: Halal ETFs like SPUS or HLAL are pre-screened for compliance.
- • Consult scholars: When in doubt, seek guidance from qualified Islamic scholars.
Note: This tool provides educational guidance based on AAOIFI standards. Different scholars and organizations may have varying criteria. Always verify with official Shariah boards and certified Islamic finance professionals before investing.
Frequently Asked Questions
What makes a stock halal or haram?
A stock is considered halal if it passes both business and financial screening. The company must not be primarily involved in haram activities (alcohol, gambling, pork, conventional banking, etc.) and must meet certain financial ratios - typically debt, interest-bearing securities, and receivables each below 33% of market cap, and impermissible income below 5% of total revenue.
What are AAOIFI standards?
AAOIFI (Accounting and Auditing Organization for Islamic Financial Institutions) is an international Islamic finance standards body. Their screening criteria are widely accepted and used by major Islamic financial institutions, mutual funds, and ETFs to determine Shariah compliance of investments.
What is dividend purification?
Even halal stocks may have a small percentage of impermissible income (up to 5%). When you receive dividends from such stocks, you must "purify" them by donating the equivalent percentage to charity. For example, if a stock has 3% impermissible income and you receive $100 in dividends, you should donate $3 to charity (not as Zakat).
Are tech stocks generally halal?
Many technology companies are Shariah-compliant because their core business (software, hardware, services) is permissible. However, each company must be individually screened as they may have significant debt or interest income. Major tech stocks like Apple, Microsoft, and Google have historically been halal according to most screeners, but status can change.
Can I invest in banks or insurance companies?
Conventional banks and insurance companies are generally considered haram because their primary business involves interest (riba). However, Islamic banks (that operate on profit-sharing principles) and Takaful (Islamic insurance) companies may be halal. Always verify with specific company screening.
Popular Halal Investment Options
📈 Halal ETFs
- SPUS: SP Funds S&P 500 Sharia Industry Exclusions ETF
- HLAL: Wahed FTSE USA Shariah ETF
- SPRE: SP Funds S&P Global REIT Sharia ETF
- UMMA: Wahed Dow Jones Islamic World ETF
ETFs are pre-screened and rebalanced regularly for compliance.
🏠 Real Estate
- • Direct property investment (halal if no mortgage)
- • Halal REITs (must screen for debt levels)
- • Real estate crowdfunding platforms
- • Musharakah-based property investment
Real estate can be halal if structured properly without interest.
📑 Sukuk (Islamic Bonds)
- • Government sukuk (sovereign)
- • Corporate sukuk
- • Sukuk ETFs
- • Green sukuk (sustainable projects)
Sukuk are asset-backed and provide returns without interest.
🌟 Commodities
- • Gold (physical or allocated accounts)
- • Silver and precious metals
- • Agricultural commodities
- • Commodity ETFs (with caveats)
Physical commodities are generally halal; futures trading is disputed.
📱 Popular Stock Screening Apps
Zoya
Comprehensive screening with purification calculator
Islamicly
Real-time screening with portfolio tracking
Musaffa
Global stock screening with detailed reports
Screening Criteria Comparison
| Criteria | AAOIFI | DJIM | S&P Shariah |
|---|---|---|---|
| Debt Ratio | < 33% | < 33% | < 33% |
| Interest Securities | < 33% | < 33% | < 33% |
| Receivables | < 33% | < 49% | < 33% |
| Impermissible Income | < 5% | < 5% | < 5% |
| Denominator | Market Cap | Avg Market Cap | Market Cap |
⚠️ Important Considerations
- • Regular rebalancing: A stock's compliance status can change quarterly. Review your portfolio regularly.
- • Different methodologies: Different scholars and organizations may have varying criteria. Choose one methodology and stick to it.
- • Purification is mandatory: If you hold halal stocks with any impermissible income, you must purify dividends.
- • Options and futures: Most scholars consider these haram due to uncertainty (gharar) and gambling elements.
- • Margin trading: Buying stocks on margin involves interest and is not permissible.
📋 Disclaimer
This tool is for educational purposes only and should not be considered financial advice. Stock screening requires accurate, up-to-date financial data from official company filings. For investment decisions, please consult with certified Islamic finance professionals and use certified halal stock screening services. Shariah compliance is a religious matter - when in doubt, consult qualified scholars.