بِسْمِ اللّهِ الرَّحْمِنِ الرّحِيمِ

Halal Investment Checker

The most advanced Shariah compliance screening tool — powered by AAOIFI, DJIM & S&P Islamic Index criteria. Screen any stock, ETF, or fund in 60 seconds.

AAOIFI Standards DJIM Criteria S&P Islamic Index Free Forever
5Screening Filters
100%Free to Use
3Major Standards
60sAverage Check

Screen Your Investment

Complete 4 simple steps to receive a full Shariah compliance verdict with detailed breakdown.

1
Company
2
Business
3
Financials
4
Income
Result
Shariah Methodology

The 5 Pillars of Halal Investment Screening

Based on globally recognised standards by AAOIFI, Dow Jones Islamic Market Index and S&P Global Islamic.

🏢
Business Activity Screen
Core business must not be prohibited under Shariah. No alcohol, pork, gambling or conventional banking as the primary activity.
Must Pass — Zero Tolerance
📊
Debt Ratio Screen
Total interest-bearing debt must not exceed 33% of the trailing 24-month average market capitalisation.
Threshold: less than 33%
💰
Cash & Receivables
Accounts receivable and cash held in interest-bearing instruments should not dominate the balance sheet.
Cash < 33% — Recv < 49%
🚫
Haram Revenue Filter
Non-permissible income must remain below 5% of total gross revenue per AAOIFI Shariah Standard No. 21.
Threshold: less than 5%
💧
Income Purification
Any unavoidable non-compliant income must be donated to charity (sadaqah) without expecting reward.
Purify Any Impure Income
Global Market Split

Approximate Shariah compliance distribution of global listed equities

Global Equity Compliance Landscape
Halal (approx. 35%)Stocks passing all Shariah screens — primarily tech, healthcare, industrials and halal food sectors.
Mashbooh / Grey Area (approx. 25%)Companies with minor non-compliant income (1–5%). Permissible with purification by most scholars.
Non-Compliant (approx. 40%)Banks, insurance, alcohol, tobacco, gambling, weapons and companies with excessive debt ratios.

Estimates based on DJIM universe research. Figures vary by index methodology.

Standard Comparison: AAOIFI vs DJIM vs S&P Islamic

CriteriaAAOIFIDow Jones IslamicS&P Global Islamic
Debt ThresholdLess than 33% of AssetsLess than 33% of Mkt CapLess than 33% of Mkt Cap
Haram Revenue LimitLess than 5%Less than 5%Less than 5%
Cash / Interest SecuritiesLess than 33% of AssetsLess than 33% of Mkt CapLess than 33% of Mkt Cap
Receivables ThresholdLess than 70% of AssetsLess than 49% of Mkt CapLess than 49% of Mkt Cap
Purification RequiredYesYesYes
Supervisory BoardRequiredNot RequiredNot Required
Weapons / DefenceExcludedConditionalExcluded
Scholarly Foundation

What Makes an Investment Halal? The Islamic Finance Evidence

The Quranic Prohibition of Riba

The foundation of Islamic investment ethics rests on the absolute prohibition of riba (interest/usury). The Quran addresses this in multiple verses, and Islamic economists and jurists unanimously agree that any investment whose core returns are derived from interest is impermissible.

Modern Shariah scholars — including those on the AAOIFI Shariah Board — have extended these principles to cover conventional banking stocks, bond funds, and debt-heavy corporations where interest payments dominate the capital structure.

"
يَا أَيُّهَا الَّذِينَ آمَنُوا لَا تَأْكُلُوا الرِّبَوٰ
"O believers! Do not consume interest, multiplied many times over. And be mindful of Allah, so you may prosper."
Surah Al-Imran 3:130

Maqasid al-Shariah and Maslaha

Modern Islamic finance jurisprudence applies the concept of maqasid al-Shariah (objectives of Islamic law) to investment decisions. The preservation of wealth (hifz al-mal) is one of the five essential objectives — meaning Muslims are not only permitted but encouraged to invest and grow their wealth through permissible channels.

Contemporary scholars including Sheikh Muhammad Taqi Usmani and the Islamic Finance Council UK established that the 5% tolerance threshold was set through scholarly consensus (ijma) under the principle of umum al-balwa (widespread unavoidable hardship).

The Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) — founded in Bahrain in 1990 — remains the most authoritative global standard-setter, with Shariah Standard No. 21 specifically addressing equity investment criteria.

Recognised Scholarly Authorities in Islamic Finance

🎓
Sheikh Muhammad Taqi Usmani
Vice-President, Darul Uloom Karachi. Former Federal Shariah Court Justice, Pakistan.
📖
Sheikh Yusuf Al-Qaradawi
Author of The Lawful and the Prohibited in Islam. International Union of Muslim Scholars.
AAOIFI Shariah Board
Bahrain-based international Islamic finance standard-setter. 57 member countries, 200+ institutions.
🌍
OIC Fiqh Academy
Organisation of Islamic Cooperation. Issues binding resolutions on contemporary financial jurisprudence.
Common Questions

Frequently Asked Questions

Answers grounded in established Islamic finance scholarship.

Is it permissible to invest in the stock market in Islam?+
What is the 5% haram revenue tolerance in Islamic finance?+
Are S&P 500 index funds halal?+
Is cryptocurrency halal or haram?+
What is income purification (tazkiyah) in Islamic investing?+
Are Apple, Microsoft and Tesla halal stocks?+
Disclaimer: This Halal Investment Checker is an educational tool only. It does not constitute financial advice, religious ruling (fatwa), or investment recommendation. Always consult a qualified Islamic scholar and a certified financial adviser before making investment decisions. | AAOIFI | DuaForAll