Detailed Criteria
A more detailed view of the Halal assessment logic
Use this page when you want a more detailed reference for the business exclusions, financial checks, sustainability overlay, and purification logic that shape the Halal assessment framework.
1. Business Screening
Industries and activities typically screened out
- Interest-based financial services such as banking, lending, and related interest-linked activities.
- Gambling, casinos, betting, pornography, and clearly problematic entertainment exposure.
- Alcohol, pork-related products, and other prohibited food categories.
- Weapons, military exposure, nuclear activity, and related conflict-sensitive sectors.
- Additional controversial engagements when the investor chooses a stricter ethical overlay.
2. Financial Screening
Core threshold categories
Interest income
Interest income is reviewed relative to revenue so that prohibited earnings remain below thresholds fixed by Shariah bodies.
Interest-bearing debt
Debt exposure is reviewed relative to market value to avoid excessive reliance on interest-linked financing.
Interest-bearing securities
Cash, equivalents, and receivable-heavy structures are reviewed to limit indirect interest-linked exposure.
3. Sustainability Overlay
Additional ethical and ESG context
- Controversy-sensitive activities such as animal testing, pesticides, palm oil, and other discouraged exposures can be surfaced separately.
- Environmental, social, and governance research can be layered onto the Halal framework rather than replacing it.
- The overlay is intended to help investors choose a stricter profile when desired, not to redefine the core Halal screen itself.
4. Purification and Zakat
Why the process continues after screening
- Dividend purification is linked to the impermissible-income share within the company’s earnings mix.
- Capital gains are treated differently from dividends because they are not directly the same as distributed impure operating income.
- If a stock turns non-compliant, investors may need a disciplined exit and a practical purification response.
- Zakat-aware portfolio thinking remains part of a complete Islamic finance investing process rather than an afterthought.
Continue with the route that helps you most
Return to the overview if you want the broader framework, or continue into Halal insights if you want a more practical investor-focused explanation.
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