Halal Stocks List
Screened against AAOIFI Shari’ah Standard 21 guidelines. Every company is checked for interest-bearing debt, non-permissible revenue and dividend purification, using its latest annual report (the SEC filing or, for European companies, the ESEF annual report, where one exists, checked against Yahoo Finance). Largest companies first.
How Halal Stock Screening Works (AAOIFI Standard 21)
1. Business Activity Audit
Companies must not have core operations in prohibited sectors: conventional finance (interest banking), alcohol, pork, gambling, adult media, or tobacco.
2. Financial Ratios
Total interest-bearing debt must remain strictly under 30% of the company’s 36-month average market value, and cash deposits must not exceed 30%.
3. Revenue Purification
Impure interest income or secondary impermissible revenue must not exceed 5% of total gross revenue, and must be purified through charitable donations.
Frequently Asked Questions About Halal Stocks
What makes a stock Halal (Shariah-compliant)?▾
A stock is Halal if its core business is permissible (free from alcohol, conventional banking/interest, gambling, pork, adult entertainment, and weapons) and its financial ratios meet AAOIFI limits: interest-bearing debt under 30% of market value, interest-earning deposits under 30%, and prohibited income under 5% of total revenue.
What is dividend purification in Islamic investing?▾
When a compliant company earns a minor, incidental amount of interest income (under 5%), Islamic scholars recommend purifying that portion by donating an equivalent percentage of the dividend payout to charity without claiming tax deductions or spiritual reward.
How often is Shariah compliance evaluated?▾
A company’s status can change whenever it publishes new financial statements or changes its business. Faithful Invest aims to re-screen every company at least every 60 days against its latest annual report, and each stock page shows the date it was last checked.
Screen your full portfolio for Shariah compliance
Import transactions or search any stock to check compliance, calculate your exact purification amount, and receive notifications when ratings change.