Screened shares
Part-ownership of listed companies whose business and accounts pass a Sharia screen.
ConceptA portfolio concept with demo data. It is not an investment offer, and no money can be deposited.
The screen (a common one, shown as an example)
- Business
- The core business must be halal: no alcohol, gambling, interest-based lending or similar.
- Debt
- Interest-bearing debt below 30% of the company's market value.
- Cash
- Interest-bearing deposits below 30% of market value.
- Income
- Non-halal income below 5% of revenue. Your share of it is given to charity, not kept.
This quarter's screen
| Step | Companies |
|---|---|
| Reviewed | 1,240 |
| Passed the business test | 412 |
| Passed the ratios too | 186 |
What can go wrong
Share prices can fall sharply. A company can fail the screen later; its shares are then sold, sometimes at a loss.
Shares and zakat
Scholars differ. Shares bought to trade are often counted at market value; shares held for dividends may be counted by the company's zakatable assets per share. Ask a qualified scholar.