What is halal investing?
Investing in a way that passes three tests: what the business does, how the contract works, and how the balance sheet is financed.
- Business activity - excludes conventional finance, alcohol, gambling, pork, adult entertainment, tobacco and conventional armaments
- Contract - excludes riba (interest), excessive gharar (uncertainty) and maysir (gambling)
- Financial structure - ratio limits on debt, interest-bearing cash and non-permissible income, with purification of the incidental remainder
The tests are applied against a named standard, by a Shariah board or adviser, and reviewed over time.
Factual and educational information only. Nothing on this page is financial product advice, a recommendation, or a Shariah ruling. Consider your circumstances and the product's disclosure documents, and seek licensed advice and qualified scholarly guidance before acting.