Under Islamicly's Shariah framework, shares in a listed company may be considered permissible to own and trade when two conditions are met. The underlying business activity and the applicable financial criteria must both satisfy the Shariah screening methodology. That methodology is prescribed by AAOIFI standards and reviewed by Islamicly's globally renowned Shariah Supervisory Board.
Shariah Compliance in Canada at a Glance
By number of securities
- Shariah-compliant711
- Non-compliant792
By market capitalisation
- Shariah-compliant80.9%
- Non-compliant19.1%
How Islamicly Screens a Stock
Islamicly applies three-level screening to every listed equity, aligned with AAOIFI Shariah Standard No. 21, with a fourth step governing the income that remains. A company must clear all three screens to earn a compliant rating.
| Screen | What It Requires |
|---|---|
| 1 · Business sector | Companies deriving 5% or more of revenue from alcohol, conventional finance, gambling, tobacco, pork, adult content or deferred gold/silver trading are excluded, as defined by AAOIFI and enhanced by the Islamicly Shariah Board. |
| 2 · Debt ratio | Interest-bearing debt must stay below 30% of the 36-month average market capitalisation. |
| 3 · Cash compliance | (Cash + interest-bearing securities) ÷ market value of equity, on a 36-month average, must be below 30%. |
| 4 · Purification | Any residual non-permissible income that was tolerated during the sector compliance check is purified by donating that proportion of dividends to charity. |
Purification applies to dividends, not capital gains.
View Islamicly's full screening criteriaTop 10 Stocks in Canada by Market Capitalisation
1. NVIDIA
NVIDIA is a US chipmaker and the leading supplier of graphics processors and AI accelerators for data centres. Its shares trade in Canada as Canadian Depositary Receipts (CDRs). NVIDIA's non-permissible revenue is below 5% of total income. The stock therefore passes the business sector screen. It also passes debt compliance and cash compliance.
| Business Activity | Debt Compliance | Cash Compliance |
|---|---|---|
| Pass | Pass | Pass |
NVIDIA is classified Shariah-compliant.
2. Meta Platforms
Meta Platforms is the US owner of Facebook, Instagram and WhatsApp, earning most of its revenue from digital advertising. Its shares trade in Canada as CDRs. Meta Platforms's non-permissible revenue is below 5% of total income. The stock therefore passes the business sector screen. It also passes debt compliance and cash compliance.
| Business Activity | Debt Compliance | Cash Compliance |
|---|---|---|
| Pass | Pass | Pass |
Meta Platforms is classified Shariah-compliant.
3. Broadcom
Broadcom is a US semiconductor and infrastructure software company, which expanded into enterprise software through its 2023 acquisition of VMware. Its shares trade in Canada as CDRs. Broadcom's non-permissible revenue is below 5% of total income. The stock therefore passes the business sector screen. It also passes debt compliance and cash compliance.
| Business Activity | Debt Compliance | Cash Compliance |
|---|---|---|
| Pass | Pass | Pass |
Broadcom is classified Shariah-compliant.
4. Advanced Micro Devices
Advanced Micro Devices is a US chip designer making processors, graphics chips and data-centre accelerators. Its shares trade in Canada as CDRs. AMD's non-permissible revenue is below 5% of total income. The stock therefore passes the business sector screen. It also passes debt compliance and cash compliance.
| Business Activity | Debt Compliance | Cash Compliance |
|---|---|---|
| Pass | Pass | Pass |
Advanced Micro Devices is classified Shariah-compliant.
5. Royal Bank of Canada
Royal Bank of Canada is the country's largest bank, spanning personal and commercial banking, wealth management, insurance and capital markets, and acquired HSBC Bank Canada in 2024. Royal Bank of Canada is a conventional bank whose revenue comes mainly from interest-based lending and investments, well above the 5% threshold. The stock therefore fails the business sector screen. It also fails debt compliance and cash compliance.
| Business Activity | Debt Compliance | Cash Compliance |
|---|---|---|
| Fail | Fail | Fail |
Royal Bank of Canada is classified Shariah non-compliant.
6. Toronto-Dominion Bank
Toronto-Dominion Bank is one of Canada's largest banks, with a large US retail banking business operating as TD Bank. Toronto-Dominion Bank is a conventional bank whose revenue comes mainly from interest-based lending and investments, well above the 5% threshold. The stock therefore fails the business sector screen. It also fails debt compliance and cash compliance.
| Business Activity | Debt Compliance | Cash Compliance |
|---|---|---|
| Fail | Fail | Fail |
Toronto-Dominion Bank is classified Shariah non-compliant.
7. Shopify
Shopify is an Ottawa-founded e-commerce platform that provides online store, payments and point-of-sale software to merchants worldwide. Shopify earns some non-permissible revenue from conventional merchant financing, along with interest income, but together these stay below 5% of total revenue. The stock therefore passes the business sector screen. It also passes debt compliance and cash compliance.
| Business Activity | Debt Compliance | Cash Compliance |
|---|---|---|
| Pass | Pass | Pass |
Shopify is classified Shariah-compliant.
8. CNOOC (ADR)
CNOOC is China's largest offshore oil and gas producer, controlled by the Chinese state, and entered Canada through its 2013 acquisition of Nexen. CNOOC's non-permissible revenue is below 5% of total income. The stock therefore passes the business sector screen. It also passes debt compliance and cash compliance.
| Business Activity | Debt Compliance | Cash Compliance |
|---|---|---|
| Pass | Pass | Pass |
CNOOC (ADR) is classified Shariah-compliant.
9. Uber Technologies
Uber Technologies is a US ride-hailing, food delivery and freight platform operating in markets worldwide. Its shares trade in Canada as CDRs. Uber's non-permissible revenue is below 5% of total income. The stock therefore passes the business sector screen. It also passes debt compliance and cash compliance.
| Business Activity | Debt Compliance | Cash Compliance |
|---|---|---|
| Pass | Pass | Pass |
Uber Technologies is classified Shariah-compliant.
10. Newmont
Newmont is the world's largest gold miner, headquartered in the US, and listed on the Toronto Stock Exchange after acquiring Australia's Newcrest Mining in 2023. Newmont's non-permissible revenue is below 5% of total income. The stock therefore passes the business sector screen. It also passes debt compliance and cash compliance.
| Business Activity | Debt Compliance | Cash Compliance |
|---|---|---|
| Pass | Pass | Pass |
Newmont is classified Shariah-compliant.
Compliance Status Is Dynamic, Not Permanent
A company classified compliant today can fail next period if it takes on interest-bearing debt, parks cash in conventional deposits, or changes its revenue mix. Islamicly monitors available information daily, while financial screening is reassessed when updated financial information becomes available. Use the Islamicly app to be alerted the moment a holding changes status.
Sector-Wise Shariah Screening in Canada
Basic Materials — mainly mining companies — is by far the largest sector, with 689 securities, and clears 62%. Technology clears 57%. Utilities has the lowest rate (12%), with Consumer/Non-Cyclical, Financial and Services all between 20% and 21%.
| Sector | Compliant | Shariah non-compliant | Total | % Compliant |
|---|---|---|---|---|
| Basic Materials | 429 | 260 | 689 | 62% |
| Services | 33 | 122 | 155 | 21% |
| Technology | 86 | 66 | 152 | 57% |
| Financial | 26 | 102 | 128 | 20% |
| Energy | 56 | 63 | 119 | 47% |
| Healthcare | 34 | 75 | 109 | 31% |
| Capital Goods | 24 | 30 | 54 | 44% |
| Consumer/Non-Cyclical | 7 | 28 | 35 | 20% |
| Utilities | 3 | 22 | 25 | 12% |
| Consumer Cyclical | 7 | 13 | 20 | 35% |
| Transportation | 5 | 11 | 16 | 31% |
| Conglomerates | 1 | 0 | 1 | 100% |
| Grand Total | 711 | 792 | 1,503 | 47.3% |
About Islamicly
Islamicly is a Shariah-certified app and web platform for screening Shariah-compliant equities. It provides Shariah compliance information for stocks listed on Canadian exchanges, and for companies listed across global markets.
Screening is carried out against AAOIFI-based standards and reviewed by Islamicly's Shariah Supervisory Board, chaired by Dr. Mohamed A. Elgari (Saudi Arabia), with Dr. Muhammad Amin Qattan (Kuwait) and Dr. Nazih Hammad (Canada). Every classification published by Islamicly, including those in this report, is produced under that framework.
On the app and web platform, investors can check the Shariah status of any listed stock, screen an existing portfolio for non-compliant positions, view a stock's historical compliance data, calculate dividend purification amounts, and receive alerts when a holding changes status. Islamicly also offers Shariah-screened model portfolios, digital gold and silver, mutual funds and managed-investment options, and runs free AMAs and webinars on halal investing.
Check the current Shariah status of any Canadian stock on the Islamicly app or web platform — screen individual stocks, screen an existing portfolio, calculate purification amounts, and get alerted when a holding changes status.
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