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 France at a Glance
By number of securities
- Shariah-compliant99
- Non-compliant359
By market capitalisation
- Shariah-compliant43.9%
- Non-compliant56.1%
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 France by Market Capitalisation
1. L'Oréal
L'Oréal is the world's largest cosmetics and beauty company, with brands spanning consumer, luxury, dermatological and professional products, including Lancôme, Garnier and Maybelline. A review of the revenue segments found no involvement in non-permissible business activities, with interest revenue below 5% of total revenue. The business sector screen therefore passes. The stock passes both debt compliance and cash compliance, and is classified Shariah-compliant.
| Business Activity | Debt Compliance | Cash Compliance |
|---|---|---|
| Pass | Pass | Pass |
L'Oréal is classified Shariah-compliant.
2. LVMH Moët Hennessy Louis Vuitton
LVMH is the world's largest luxury goods group, with businesses in fashion and leather goods, wines and spirits, perfumes and cosmetics, watches and jewellery, and selective retailing. LVMH earns revenue from non-permissible activities — its Wines and Spirits business and gold and silver hedging — alongside interest income, and together these exceed 5% of total revenue. The stock therefore fails the business sector screen. Debt compliance and cash compliance both pass, but a clean balance sheet cannot offset the business activity result.
| Business Activity | Debt Compliance | Cash Compliance |
|---|---|---|
| Fail | Pass | Pass |
LVMH Moët Hennessy Louis Vuitton is classified Shariah non-compliant.
3. TotalEnergies
TotalEnergies is an integrated energy company producing and marketing oil, natural gas and liquefied natural gas, with a growing electricity and renewables business. A review of the revenue segments found no operating revenue from non-permissible areas, with interest income below 5% of total revenue. The business sector screen therefore passes. The stock fails debt compliance, with interest-bearing debt above 30% of its 36-month average market capitalisation. Cash compliance passes.
| Business Activity | Debt Compliance | Cash Compliance |
|---|---|---|
| Pass | Fail | Pass |
TotalEnergies is classified Shariah non-compliant.
4. Schneider Electric
Schneider Electric provides energy management and industrial automation products, software and services for buildings, data centres, infrastructure and industry. A review of the revenue segments found no involvement in non-permissible business activities, with interest revenue below 5% of total revenue. The business sector screen therefore passes. The stock passes both debt compliance and cash compliance, and is classified Shariah-compliant.
| Business Activity | Debt Compliance | Cash Compliance |
|---|---|---|
| Pass | Pass | Pass |
Schneider Electric is classified Shariah-compliant.
5. Airbus
Airbus designs and manufactures commercial aircraft, helicopters, and defence and space systems. It is incorporated in the Netherlands and listed in Paris. A review of the revenue segments found no involvement in non-permissible business activities, with interest revenue below 5% of total revenue. The business sector screen therefore passes. The stock passes both debt compliance and cash compliance, and is classified Shariah-compliant.
| Business Activity | Debt Compliance | Cash Compliance |
|---|---|---|
| Pass | Pass | Pass |
Airbus is classified Shariah-compliant.
6. Hermès International
Hermès is a family-controlled luxury house best known for leather goods, silk and ready-to-wear, produced largely in its own French workshops. A review of the revenue segments found no involvement in non-permissible business activities, with interest revenue below 5% of total revenue. The business sector screen therefore passes. The stock passes both debt compliance and cash compliance, and is classified Shariah-compliant.
| Business Activity | Debt Compliance | Cash Compliance |
|---|---|---|
| Pass | Pass | Pass |
Hermès International is classified Shariah-compliant.
7. Safran
Safran is an aerospace and defence group producing aircraft engines, aircraft equipment and cabin interiors, including engines built through its CFM International joint venture with GE. A review of the revenue segments found no involvement in non-permissible business activities, with interest revenue below 5% of total revenue. The business sector screen therefore passes. The stock passes both debt compliance and cash compliance, and is classified Shariah-compliant.
| Business Activity | Debt Compliance | Cash Compliance |
|---|---|---|
| Pass | Pass | Pass |
Safran is classified Shariah-compliant.
8. BNP Paribas
BNP Paribas is one of Europe's largest banks, providing retail, corporate and investment banking, asset management and insurance. BNP Paribas is a conventional bank. Conventional banking is a non-permissible sector. 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 |
BNP Paribas is classified Shariah non-compliant.
9. Air Liquide
Air Liquide supplies industrial and medical gases, together with related technologies and services, to industry and healthcare. A review of the revenue segments found no involvement in non-permissible business activities, with interest revenue below 5% of total revenue. The business sector screen therefore passes. The stock passes both debt compliance and cash compliance, and is classified Shariah-compliant.
| Business Activity | Debt Compliance | Cash Compliance |
|---|---|---|
| Pass | Pass | Pass |
Air Liquide is classified Shariah-compliant.
10. AXA
AXA is one of the world's largest insurance groups, offering property and casualty, life, health and savings products, and asset management. AXA's core business is conventional insurance, a non-permissible activity. The stock therefore fails the business sector screen. It also fails debt compliance; cash compliance passes.
| Business Activity | Debt Compliance | Cash Compliance |
|---|---|---|
| Fail | Fail | Pass |
AXA is classified Shariah non-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 France
Healthcare clears the highest share of the larger sectors, at 43%. Financial is the lowest, at 3% — one of 38 — and Services, the largest sector, clears just 8%.
| Sector | Compliant | Shariah non-compliant | Total | % Compliant |
|---|---|---|---|---|
| Services | 9 | 103 | 112 | 8% |
| Technology | 27 | 47 | 74 | 36% |
| Healthcare | 28 | 37 | 65 | 43% |
| Capital Goods | 12 | 41 | 53 | 23% |
| Consumer Cyclical | 4 | 36 | 40 | 10% |
| Financial | 1 | 37 | 38 | 3% |
| Basic Materials | 9 | 14 | 23 | 39% |
| Consumer/Non-Cyclical | 3 | 20 | 23 | 13% |
| Transportation | 1 | 9 | 10 | 10% |
| Utilities | 2 | 8 | 10 | 20% |
| Energy | 2 | 6 | 8 | 25% |
| Beverages (Nonalcoholic) | 0 | 1 | 1 | 0% |
| Biotechnology & Drugs | 1 | 0 | 1 | 100% |
| Grand Total | 99 | 359 | 458 | 21.6% |
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 Euronext Paris, 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 French 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.
No comments yet — be the first to share your thoughts.