Decision guide
AAOIFI vs DJIM stock screening — which methodology should you use?
The two most widely used shariah screening methodologies — AAOIFI's and the Dow Jones Islamic Market Index's — agree on the general structure but differ on financial ratio denominators. Most retail apps follow one or the other.
AAOIFI Shariah Standards (e.g., S&P Shariah)
Uses market capitalisation as the denominator. Stricter on the debt ratio in practice.
- Debt-bearing liabilities / market cap < 30%
- Cash + interest-bearing securities / market cap < 30%
- Impermissible income < 5%
- Adopted by Bahrain, Pakistan, Sudan, and major Gulf institutions
DJIM (Dow Jones Islamic Market) methodology
Uses 24-month trailing average market cap. Slight differences in cash and receivables tests.
- Debt / trailing 24-month avg market cap < 33%
- Cash + interest-bearing securities / trailing avg market cap < 33%
- Accounts receivable / trailing avg market cap < 33%
- Used by most Western Islamic ETFs and retail apps like Zoya and Musaffa
Our recommendation
For most retail Muslim investors, either methodology is acceptable — pick the one your screening app uses and stay consistent. AAOIFI is preferable if you want the methodology most widely endorsed by Gulf scholars; DJIM is preferable if you invest mostly through Western Islamic ETFs.
Apply this in practice
Open a swap-free Islamic account with our partner broker — structured the way this comparison recommends.