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 the UAE at a Glance
By number of securities
- Shariah-compliant92
- Non-compliant84
By market capitalisation
- Shariah-compliant62.6%
- Non-compliant37.4%
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 the UAE by Market Capitalisation
1. International Holding Company
International Holding Company is an Abu Dhabi-based conglomerate with holdings spanning healthcare, real estate, food, utilities and technology, including stakes in PureHealth, Ghitha and Alpha Dhabi. IHC earns a small amount of non-permissible revenue from conventional finance and investment services, but this stays below 5% of total revenue, and it reports no interest 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 |
International Holding Company is classified Shariah-compliant.
2. ADNOC Gas
ADNOC Gas processes and markets natural gas for the UAE and export markets. It is majority-owned by the Abu Dhabi National Oil Company and listed on ADX in 2023. ADNOC Gas's revenue comes from natural gas liquids and other gas products, with no involvement in non-permissible business activities and no interest 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 |
ADNOC Gas is classified Shariah-compliant.
3. First Abu Dhabi Bank
First Abu Dhabi Bank is the UAE's largest bank, formed in 2017 through the merger of National Bank of Abu Dhabi and First Gulf Bank. First Abu Dhabi Bank offers both conventional and Islamic banking, and interest and other non-permissible income make up most of its revenue, far 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 |
First Abu Dhabi Bank is classified Shariah non-compliant.
4. Emirates NBD
Emirates NBD is Dubai's largest bank, majority-owned by the Investment Corporation of Dubai, and owns Emirates Islamic and Türkiye's DenizBank. Emirates NBD offers both conventional and Islamic banking, and interest and other non-permissible income make up most of its revenue, far 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 |
Emirates NBD is classified Shariah non-compliant.
5. Emirates Telecommunications Group (e&)
e&, formerly Etisalat, is the UAE's main telecommunications operator, with international holdings including a controlling stake in Maroc Telecom and a large stake in Vodafone. e& earns some non-permissible revenue from television entertainment services and conventional banking, along with interest income, but together these stay below 5% of total revenue. The stock therefore passes the business sector screen and also passes cash compliance. However, its interest-bearing debt exceeds 30% of its 36-month average market capitalisation, so it fails debt compliance.
| Business Activity | Debt Compliance | Cash Compliance |
|---|---|---|
| Pass | Fail | Pass |
Emirates Telecommunications Group (e&) is classified Shariah non-compliant.
6. Dubai Electricity and Water Authority
DEWA is Dubai's state-controlled electricity and water utility, listed on the Dubai Financial Market in 2022. A review of DEWA's electricity, water and district cooling revenue found no involvement in non-permissible business activities, with interest income 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 |
Dubai Electricity and Water Authority is classified Shariah-compliant.
7. Abu Dhabi Commercial Bank
Abu Dhabi Commercial Bank is one of the UAE's largest banks, and merged with Union National Bank and acquired Al Hilal Bank in 2019. Abu Dhabi Commercial Bank offers both conventional and Islamic banking, and interest and other non-permissible income make up most of its revenue, far 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 |
Abu Dhabi Commercial Bank is classified Shariah non-compliant.
8. Emaar Properties
Emaar Properties is the Dubai developer behind Burj Khalifa and Dubai Mall, with property development, shopping malls and hospitality businesses. Emaar earns some non-permissible revenue from tenants whose businesses are not Shariah-compliant and from alcohol sales in its hospitality business, along with interest income. 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 |
Emaar Properties is classified Shariah-compliant.
9. ADNOC Drilling
ADNOC Drilling provides onshore and offshore drilling services, mainly for ADNOC, and listed on ADX in 2021. A review of ADNOC Drilling's drilling, oilfield services and rig rental revenue found no involvement in non-permissible business activities, with interest income 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 |
ADNOC Drilling is classified Shariah-compliant.
10. Abu Dhabi Islamic Bank
Abu Dhabi Islamic Bank is one of the UAE's largest Islamic banks, with retail, corporate and private banking operations in the UAE, Egypt and other markets. Abu Dhabi Islamic Bank operates as a fully Islamic bank, offering Mudaraba savings accounts, Ijarah home finance and other Shariah-compliant products. As per the Shariah screening methodology, Abu Dhabi Islamic Bank has a Shariah scholars board to supervise the activities of the bank. It also has a pronouncement from the Shariah board that the activities of the bank are Shariah-compliant. 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 |
Abu Dhabi Islamic Bank 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 the UAE
Every listed Healthcare (6) and Energy (5) company is Shariah-compliant, and Services clears 66%. Financial, the largest sector with 78 securities, clears 37% — a higher share than in most markets, because it includes Islamic banks, takaful insurers and Shariah ETFs.
| Sector | Compliant | Shariah non-compliant | Total | % Compliant |
|---|---|---|---|---|
| Financial | 29 | 49 | 78 | 37% |
| Services | 27 | 14 | 41 | 66% |
| Capital Goods | 8 | 9 | 17 | 47% |
| Transportation | 5 | 6 | 11 | 45% |
| Consumer/Non-Cyclical | 5 | 4 | 9 | 56% |
| Healthcare | 6 | 0 | 6 | 100% |
| Energy | 5 | 0 | 5 | 100% |
| Technology | 3 | 1 | 4 | 75% |
| Basic Materials | 2 | 1 | 3 | 67% |
| Utilities | 1 | 0 | 1 | 100% |
| Consumer Cyclical | 1 | 0 | 1 | 100% |
| Grand Total | 92 | 84 | 176 | 52.3% |
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 ADX, DFM and Nasdaq Dubai, 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 UAE 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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