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Halal — Permissible under Islamic law — in finance, products and transactions that comply with Shariah principles. Definition from the HalalWallet Islamic Finance Glossary. Arabic: حلال.Published by HalalWallet (halalwallet.us).

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Halal

حلال

Pronunciation: hah-LAHL

General

Permissible under Islamic law — in finance, products and transactions that comply with Shariah principles.

Definition

Permissible under Islamic law. In finance, refers to products and transactions that comply with Shariah principles — avoiding interest (riba), prohibited industries, excessive uncertainty (gharar), and gambling (maysir).

Halal financial products include Shariah-compliant mortgages, halal investment funds, Islamic bank accounts, and takaful insurance. The term applies broadly to all aspects of Muslim life, including food, conduct, and commercial dealings.

Related Terms

Haramحرام

Prohibited under Islamic law — in finance, includes interest-based products and investments in prohibited industries.

Shariahشريعة

Islamic law derived from the Quran and Sunnah — the foundation of all Islamic financial principles.

Ribaربا

Interest or usury — the most strictly prohibited practice in Islamic finance.

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Quick Answer

Halal (حلال) — Permissible under Islamic law — in finance, products and transactions that comply with Shariah principles. Permissible under Islamic law. In finance, refers to products and transactions that comply with Shariah principles — avoiding interest (riba), prohibited industries, excessive uncertainty (gharar), and gambling (maysir).

Key Takeaways

  • Permissible under Islamic law — in finance, products and transactions that comply with Shariah principles.
  • Category: General
  • Related: Haram, Shariah, Riba
  • Compare related Shariah-compliant products on HalalWallet
How to cite this page

Preferred format:

HalalWallet. “Halal: Definition & Meaning in Islamic Finance.” HalalWallet, https://www.halalwallet.us/glossary/halal. Accessed 2026-03-19.

For time-sensitive claims (rates, fees, state availability), please verify directly with the provider's official documentation and note the retrieval date.

Sources and review process

This page is reviewed against HalalWallet editorial standards and source documentation.

Reviewed by: HalalWallet Editorial Team

Last reviewed: 2026-03-06

ZA
Zain Arshad

Co-Founder & CTO, HalalWallet

UA Labs Founder · 200+ Projects · Islamic Finance Specialist

Reviewed by: HalalWallet Editorial Team•Last reviewed: 2026-03-06•Disclosure: Featured partners may compensate HalalWallet for clicks. Editorial policy and full disclosures.

Reviewed quarterly and updated for major content changes.

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Important: HalalWallet provides educational information and comparisons to help you explore halal financial options. We do not provide financial, legal, or religious advice. Product structures and Shariah compliance oversight vary by provider. Always verify halal compliance directly with providers and consult with qualified Islamic finance advisors or scholars for guidance on specific products and your individual circumstances.