Glossary
Halal stock screening
Definition
The process of filtering publicly listed companies against shariah criteria — activity, debt, and income.
Standard screens have three layers: (1) the primary business must be halal (no alcohol, gambling, conventional banking, adult entertainment, pork); (2) interest-bearing debt to market cap below ~33%; (3) impermissible income below ~5% of revenue, with that portion purified.
The AAOIFI and DJIM methodologies differ on denominators (market cap vs total assets) and exact thresholds. Major providers include Dow Jones Islamic Market Index, S&P Shariah, MSCI Islamic, and Zoya/Musaffa apps for retail investors.