Is Alset (AEI) stock Halal?

Alset is an innovative company that specializes in sustainable real estate development and management. It primarily focuses on integrating sustainable practices and cutting-edge technology into its projects, aiming to create environmentally friendly and energy-efficient living spaces. With a commitment to renewable energy solutions, Alset has significantly impacted urban development and the real estate sector, promoting eco-friendly living and smart city concepts. Before any of that matters to a Muslim investor, one question comes first: is Alset stock Halal?

Is Alset Shariah compliant?

No. In the October 2026 screening Alset (AEI) does not pass AAOIFI screening: it fails the non-permissible income and interest-bearing investments screens. Real estate begins from a strong position in Shariah screening: buildings and land are permissible assets. What AAOIFI Shariah Standard No. 21 examines for Alset is the mortgage financing behind the portfolio, capped at 30% of market capitalisation, and whether tenant income includes impermissible sources beyond the 5% ceiling.

Does Alset pass the business activity test?

The activity screen is only part of the picture this month: Alset currently fails the non-permissible income and interest-bearing investments screens, so the overall verdict is not compliant regardless of the business itself. The watch item is the tenant roll: rental income from impermissible businesses counts against the 5% ceiling.

Is Alset's income Halal?

No. Alset's income from impermissible sources currently exceeds AAOIFI's 5% revenue ceiling, which makes the stock non-compliant on this screen regardless of the others. The screen is reassessed monthly, so the status can change when new financial statements arrive.

Does Alset meet AAOIFI's debt and investment ratio requirements?

Not in full. Interest bearing investments currently exceed the 30% cap, measured against a market capitalisation of $29.5M (market data as of 1 October 2026), while the other ratio stays within it. One breach is enough to fail the screening; the ratios are reassessed monthly under our Shariah Supervisory Board.

Why do other halal screeners show a different verdict for Alset?

Screeners can disagree without either being wrong. AAOIFI Shariah Standard No. 21, which Tabadulat applies, measures interest bearing debt and investments against market capitalisation with a 30% ceiling. MSCI and FTSE measure them against total assets with a 33% ceiling, and S&P and Dow Jones Islamic use a multi year average of market capitalisation. Data dates differ too, because each provider reads filings and prices on its own schedule. The same company can therefore pass one standard and fail another in the same month. Tabadulat publishes one answer, the AAOIFI result as of October 2026, and re-screens it every month.

Tabadulat is an ADGM regulated brokerage whose license covers Shari'a Compliant Regulated Activities, as the FSRA permission names them. New to the terminology? Gharar and Maysir, Sukuk, Zakat and purification are all explained in plain English.

New to the screening method? Read REITs: Halal Real Estate for Muslim Investors