Shariah Methodologies

Every stock passes a business-sector screen, financial-ratio screen and dividend purification before earning a halal rating — aligned with AAOIFI Shariah Standard No. 21 and re-checked daily across 50,000+ stocks.

1. 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.

2. 2
   Debt ratio

   Interest-bearing debt must stay below 30% of the 36-month average market capitalization.

3. 3
   Cash compliance

   (Cash + Interest Bearing Securities) / Market value of Equity (36 month average) < 30%

4. 4
   Purification

   Any residual non-permissible income (0–5%) is purified by donating that proportion of dividends to charity.

In Shariah, gold is thaman — a medium of exchange. It must therefore be bought and sold on a spot basis with full ownership taken, never on a deferred, leveraged or speculative footing.

1. 1
   Spot settlement

   Price and possession are settled in the same sitting (qabd) — no deferment on either side.

2. 2
   Full backing

   Every unit is backed by allocated physical gold, not a paper claim or IOU.

3. 3
   No riba or leverage

   No interest, margin or forward contracts — gold cannot be sold before it is truly owned.

4. 4
   Purity & custody

   Investment-grade purity, stored in audited, segregated vaults.

Like gold, silver is treated as thaman in Islamic law. The same rules of immediate spot exchange and full possession apply, making it a permissible store of value.

1. 1
   Spot exchange

   Bought and sold with immediate settlement and possession — no deferment.

2. 2
   Physical backing

   Backed by allocated physical silver held in secure custody.

3. 3
   No deferral

   No forward, margin or interest-based structures of any kind.

4. 4
   Transparent pricing

   Priced against real market spot rates, not synthetic derivatives.