Is Skillful Craftsman Education Technology (EDTK) stock Halal?

Skillful Craftsman Education Technology is a China-based company that specializes in providing online educational courses and services. The primary function of Skillful Craftsman is to offer vocational education through an internet-driven platform, giving learners from a multitude of sectors access to a variety of skill-enhancing courses. Predominantly focusing on vocational training, this company caters to sectors such as information technology, healthcare, construction, and e-commerce, empowering individuals with the skills necessary for career advancement and growth. For Muslim investors, though, the most pressing question is simpler: is Skillful Craftsman Education Technology a Halal investment?

Is Skillful Craftsman Education Technology Shariah compliant?

Food, household goods and everyday retail are permissible activities, with one watch item: incidental revenue from alcohol, tobacco or conventional financial services must stay below the 5% ceiling of AAOIFI Shariah Standard No. 21. For Skillful Craftsman Education Technology, that is usually the screen worth reading first.

Does Skillful Craftsman Education Technology pass the business activity test?

The activity screen is only part of the picture this month: Skillful Craftsman Education Technology currently fails the non-permissible income screen, so the overall verdict is not compliant regardless of the business itself. The watch item is the product mix: any alcohol, tobacco or similar lines count against the 5% ceiling.

Is Skillful Craftsman Education Technology's income Halal?

No. Skillful Craftsman Education Technology'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 Skillful Craftsman Education Technology meet AAOIFI's debt and investment ratio requirements?

Yes. Both caps hold this month: interest bearing investments and interest bearing debt each stay below 30% of market capitalisation. Because the caps move with the share price, our Shariah Supervisory Board has EDTK re-screened every month, and the result above always shows the latest verdict.

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 four screens? Read What is Halal Investing? A Guide to Halal Stocks and Islamic Finance