Our Halal Screening Methodology
Transparent, scholar-informed criteria based on AAOIFI standards — so you always know exactly how we determine halal status.
Standards We Follow
AAOIFI
Accounting and Auditing Organization for Islamic Financial Institutions — the global standard-setter for Islamic finance.
DJIM Criteria
Dow Jones Islamic Market Index screening methodology, widely used by institutional halal investors globally.
Scholarly Review
Our criteria are informed by an internal review process with reference to contemporary Islamic finance scholarship.
The 5 Screening Criteria
A company must pass all five criteria to receive a halal designation.
Debt-to-Assets Ratio
Threshold: < 33%Excessive debt resembles riba-based financing. Companies that rely heavily on interest-bearing debt derive indirect benefit from riba, making them impermissible.
Haram Revenue
Threshold: < 5%Revenue derived from alcohol, tobacco, weapons manufacturing, adult entertainment, pork products, or conventional financial services is prohibited under Sharia.
Interest Income
Threshold: < 5%Income generated from interest-bearing instruments (bonds, conventional savings, loans) is considered riba and is therefore prohibited in Islamic finance.
Cash & Receivables Ratio
Threshold: < 33%When a company's assets are predominantly cash and receivables, purchasing its shares at market price can resemble buying money at a discount — a form of riba.
Non-Compliant Investments
Threshold: < 33%Investments in businesses that are themselves non-Sharia-compliant are not permissible, as this constitutes indirect participation in haram activities.
The Scoring System (0–100)
Each stock receives a compliance score from 0 to 100, calculated as a weighted average of how comfortably a company falls within each criterion's threshold:
80 – 100
Permissible
60 – 79
Questionable
0 – 59
Not Permissible
Scores reflect the margin of safety relative to each threshold. A company scoring 94 on debt ratio (18% vs 33% threshold) contributes more points than one at 32% — even though both technically pass.
Important Disclaimers
Our screening is algorithmic and educational — it is not a fatwa and does not carry the authority of a religious ruling.
Sharia scholars may differ on certain rulings. What one school considers permissible, another may not.
Always consult a qualified Islamic finance scholar before making personal investment decisions.
Stock compliance status can change as companies update their financial structure. We recommend regular re-screening.