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Your Questions, Answered (FAQs)
Short, straightforward answers designed to help you invest with clarity and confidence.
How can I tell if a stock is Halal?
Check both the company's business activities and financial ratios. Avoid firms with riba-based debt or significant impermissible income. Tabadulat screens over 40 000 stocks and ETFs daily and notifies you if a holding becomes non-compliant.
Are ETFs Shariah-Compliant?
Some ETFs are halal to invest in if they track Shariah-compliant companies and avoid interest-based structures. For example, SPUS is a halal alternative to the S&P 500 ETF. Always verify that the underlying assets meet Islamic criteria.
How does Tabadulat ensure Shariah-compliance?
Tabadulat adheres to AAOIFI standards, has an independent Shariah board, screens more than 40 000 stocks and ETFs in real time, and provides alerts if your portfolio becomes non-compliant. It also includes a built-in zakat calculator.
What are Halal REITs?
Halal REITs invest in Shariah-compliant property like residential or health care assets, avoid riba-based financing and ensure non-halal income stays below 5%. Tabadulat's screener can help you filter these REITs and monitor compliance.
What are Halal Mutual funds?
Halal mutual funds pool money to buy screened equities; their permissibility depends on the holdings and management practices. Funds like Amana Growth meet these criteria. Use Tabadulat's screener to compare and identify Shariah-compliant mutual funds.
What is a Halal mutual fund?
A halal mutual fund pools money into investments screened to meet Islamic finance principles. It avoids companies with interest income, unethical business activity, or high debt, using AAOIFI-compliant screening methods.
Is gold ETF investing Halal in Islam?
Yes, if the gold ETF is backed by physical gold, allows immediate settlement, and avoids speculative or interest-based structures. A halal gold ETF must comply with Shariah rules on ownership and trade.
What is a Halal REIT?
A Halal REIT is a real estate investment trust that earns income from Shariah-permissible rent sources. It must limit debt, interest income, and avoid leasing to businesses involved in haram activities.
How does a Halal stock screener work?
A Halal Stock Screener checks whether a stock meets Shariah standards based on its core business activity, interest income, cash holdings, and debt levels. Companies must pass all criteria to be considered halal.
What are Islamic bonds?
Sukuk are sometimes referred to as Islamic bonds structured around real assets, not debt. They offer profit-sharing returns without interest and are approved by scholars to ensure they meet AAOIFI standards.
Can Muslim investors buy and sell stocks on the secondary market?
Yes. As long as the stocks are Shariah-compliant. Halal stock screening is essential before buying and selling shares, especially in global stock markets, to ensure all investments and financial products meet Islamic guidelines.
Are conventional banks halal to invest in?
No, conventional banks typically engage in interest-based lending and hold riba-bearing assets. These business activities violate Islamic finance principles and fail AAOIFI screening.
Is the United States stock market halal for Muslims?
Parts of the U.S. stock market are halal but only if individual stocks pass AAOIFI screening for business activity, interest income, debt obligations, and financial system compliance.
How do halal stock screeners determine if a stock is Shariah-compliant?
Tabadulat applies AAOIFI standards: screening core business activity, riba-bearing debt, interest income, and cash ratios. Only stocks passing all criteria are listed as Halal.
What should investors do if a previously halal stock becomes non-compliant?
Sell the position promptly and purify any returns earned while non-compliant by donating that portion to charity. Tabadulat notifies you immediately when a stock changes compliance status.
Do Halal stock screeners cover global markets or only specific countries?
Tabadulat screens more than 40 000 stocks and ETFs across global markets daily, covering US, GCC, European, and Asian exchanges, giving Muslims worldwide access to Shariah-compliant investment options.
Do I need to manually check sources to verify a company's Halal status?
No. Tabadulat automates the entire screening process using AAOIFI standards and updates compliance statuses daily, so you never have to manually verify financial ratios or business activities.
Why might a stock switch from Halal to non-compliant over time?
A company's business activities or financial ratios can change quarterly. If debt levels rise, interest income grows, or it enters a haram sector, it may fail AAOIFI thresholds. Tabadulat monitors this continuously.