Halal Screening
The process of evaluating stocks and investments for compliance with Islamic principles.
Definition
The process of evaluating stocks, funds, and other investments for compliance with Shariah principles. Screening typically involves two layers: (1) Business activity screening — excluding companies that derive significant revenue from haram industries (alcohol, tobacco, gambling, pork, conventional finance, weapons, adult entertainment); and (2) Financial ratio screening — excluding companies with excessive debt-to-asset ratios, interest income, or impure revenue above established thresholds. Major screening providers include AAOIFI, MSCI, Dow Jones, and S&P.
U.S. halal investment platforms like Wahed Invest, Azzad Asset Management, and Saturna Capital apply these screens to their fund offerings.
Related Terms
Shariahشريعة
Islamic law derived from the Quran and Sunnah — the foundation of all Islamic financial principles.
Halalحلال
Permissible under Islamic law — in finance, products and transactions that comply with Shariah principles.
Purificationتطهير
The practice of donating the haram portion of investment returns (such as interest income) to charity.
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Quick Answer
Halal Screening — The process of evaluating stocks and investments for compliance with Islamic principles. The process of evaluating stocks, funds, and other investments for compliance with Shariah principles. Screening typically involves two layers: (1) Business activity screening — excluding companies that derive significant revenue from haram industries (alcohol, tobacco, gambling, pork, conventional finance, weapons, adult entertainment); and (2) Financial ratio screening — excluding companies with excessive debt-to-asset ratios, interest income, or impure revenue above established thresholds.
Key Takeaways
- The process of evaluating stocks and investments for compliance with Islamic principles.
- Category: Investment
- Related: Shariah, Halal, Purification
- Compare related Shariah-compliant products on HalalWallet
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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
Co-Founder & CTO, HalalWallet
UA Labs Founder · 200+ Projects · Islamic Finance Specialist
Reviewed quarterly and updated for major content changes.