Our Sharia Screening Services for Stocks Include:
- Business Activity Screening
- Financial Ratio Analysis
- Customized Screening Criteria
- Real-time Monitoring and Updates
- Portfolio-level Screening and Analysis
- Purification Calculations
- Stocks Zakah
Business Activity Screening
We conduct detailed analysis of companies’ business activities to determine their compliance with Islamic principles. Our screening process evaluates primary and secondary business activities, to identify any involvement in prohibited sectors such as conventional banking, alcohol, gambling, tobacco, and other activities considered non-compliant with Shariah.
Financial Ratio Analysis
Beyond business activities, companies must meet specific financial criteria to be considered Shariah-compliant. We apply internationally recognized financial screening criteria including debt-to-assets ratios, interest-based loans-to-assets ratio and prohibited income ratios, to ensure investments meet established Islamic investment benchmarks.
Customized Screening Criteria
Different scholars and jurisdictions may apply varying screening criteria. We provide customized screening services that align with specific Shariah interpretations or regulatory requirements relevant to our clients. This flexibility ensures that screening results meet the particular requirements of different investor groups.
Real-time Monitoring and Updates
Shariah compliance status can change due to business developments or financial performance changes. We provide real-time monitoring services that track compliance status of screened stocks and alert clients to any changes that may affect investment decisions.
Portfolio-level Screening and Analysis
For existing investment portfolios, we provide comprehensive screening services that assess overall portfolio compliance and provide recommendations for rebalancing or restructuring to achieve full Shariah compliance. This includes analysis of individual holdings and portfolio-level metrics.
Purification Calculations
When stocks have acceptable non-compliant income components, Islamic jurisprudence requires purification of such income through charitable donations. We provide precise purification calculations and guidance on appropriate charitable distribution to ensure complete compliance.
Stocks Zakah
Calculation of stocks Zakah can be a complex procedure as it requires careful reading of the company’s financial statements, knowledge of accounting practices and benchmarking against Zakah rules. We support our clients by accurately calculating their equities’ Zakah on an annual basis.
