Definition of halal stocks
Posted: Wed Aug 14, 2024 3:36 pm
Halal stocks are legitimate securities issued by companies whose commercial activities and investments are compatible with the principles of Islamic Sharia. This means that these companies do not participate in businesses or industries prohibited by Sharia, such as alcohol, tobacco, pork, gambling, usurious banks, and illegal weapons industries.
Conditions and criteria that make stocks halal
قائمة الشركات النقية
The company's primary activity:
The company's primary activities must be pure and not prohibited in Islam. This means avoiding companies that operate in sectors such as conventional banks (which rely on usury), as well as alcohol manufacturing companies, gambling companies, and other prohibited activities as well.
The company's financial structure:
The percentage of usurious debts borne by the company should be limited and in line with the percentages accepted in Islamic jurisprudence. The company's cash flow and investments must also be compatible with Sharia.
Financial transactions:
Avoid transactions that involve usurious interest or non-transparent financial practices. Commercial and investment transactions should preferably be in line with the concept of profit and loss sharing (Mudharabah and Musharakah).
Conditions and criteria that make stocks halal
قائمة الشركات النقية
The company's primary activity:
The company's primary activities must be pure and not prohibited in Islam. This means avoiding companies that operate in sectors such as conventional banks (which rely on usury), as well as alcohol manufacturing companies, gambling companies, and other prohibited activities as well.
The company's financial structure:
The percentage of usurious debts borne by the company should be limited and in line with the percentages accepted in Islamic jurisprudence. The company's cash flow and investments must also be compatible with Sharia.
Financial transactions:
Avoid transactions that involve usurious interest or non-transparent financial practices. Commercial and investment transactions should preferably be in line with the concept of profit and loss sharing (Mudharabah and Musharakah).