Shariah-aware research

Understand why, not just whether

Plain-English explainers on Islamic finance, and written assessments of investment product types measured against a named screening standard, with the working shown.

Educational research only. Not a fatwa and not personalised financial advice.

Sample assessment: screened index fund

Product typeScreened index fund
Standard appliedAAOIFI SS 21
Open questionPurification basis
ReviewedJune 2026

Illustrative. Not an assessment of any named fund or provider.

Where to start

What we cover

The prohibitions

Riba, gharar and maysir, defined and then applied to products you can actually buy.

Contract structures

Murabaha, ijarah, mudarabah, musharakah and sukuk, and what each one asks of both parties.

Screened funds and ETFs

What a halal index screen tests, when it is re-applied, and what happens between review dates.

Accounts and deposits

Fixed-return deposits, broker and app account features, and staking arrangements.

Screening standards

Why AAOIFI, Dow Jones, FTSE and MSCI disagree, and how to read a certificate's scope.

Workplace pensions

Default funds, self-select options, and the questions to put to a scheme administrator.

Foundations

What halal investing actually asks of you

Islamic finance rules out three things in an investment: a stipulated return on money lent, contracts whose subject matter is unclear, and gains manufactured from chance. Most questions you have about a product resolve into one of those three, so the explainers start there before they reach any product.

Prohibition

Interest, and where the line sits

riba

Any stipulated increase over the principal of a loan, however the terms label it. Qur’an 2:275-281 is the usual starting reference.

Prohibition

Uncertainty in a contract

gharar

Ambiguity about price, subject matter or delivery. Minor uncertainty is tolerated; uncertainty that turns the exchange into a wager is not.

Prohibition

Speculation and gambling

maysir

Where one party’s gain is the direct result of another’s loss and the outcome turns on chance. The distinction from ordinary commercial risk is the whole question.

Method

The four checks behind every assessment

01

Name the standard

Every assessment states which published screening standard it is measured against, and cites the clause rather than a summary of it.

02

Read the documentation

Terms, prospectuses and scheme rules as published by the provider. Not marketing pages, not a certificate badge.

03

Record the disagreement

Where recognised scholars reach different conclusions, the note states each position and attributes it.

04

Date and publish the sources

Standards and documents change. Each assessment carries a review date and the list of documents it was read against.

Assessments

Recently published

How to read these

Each assessment describes a product type as documented, under a named standard, on a stated date. It is not a fatwa, not advice, and not a verdict on any provider. Where recognised scholars differ, the note says so and says whose view is whose.

Under review

Funds

Screened index funds tracking a halal benchmark

The screen is re-applied on a published cycle. What the fund holds between review dates, and how purification is handled, decide most of the question.

AAOIFI Shariah Standard 21 · Reviewed June 2026

Non-compliant

Deposits

Fixed-return deposit accounts

A return stipulated as a percentage of the sum deposited is an increase over principal, whatever the product literature calls it.

AAOIFI Shariah Standard 1 · Reviewed March 2026

Compliant

Sukuk

Ijarah sukuk backed by identified assets

Where the lease is genuine, the asset is identified and ownership risk sits with the certificate holder, the structure holds under the standard.

AAOIFI Shariah Standard 17 · Reviewed May 2026

If you are starting from cash

A reading path for beginners

1

Learn the three prohibitions

Riba, gharar and maysir. Almost every product question reduces to one of them.

2

Learn one contract structure

Murabaha is the most common, and understanding it makes the others legible.

3

Read an assessment in full

Follow the working rather than the verdict, so you can repeat it on a product we have not covered.

4

Take it to a scholar and an adviser

Bring the specific documentation. That is the conversation this site is designed to prepare you for.

Questions

What readers ask first

No. We are not a Shariah board and we do not issue rulings. We apply published screening standards to documented product types, cite the clause, and state where scholars differ. A ruling on your particular circumstances has to come from a qualified scholar.
Because they apply different standards, and those standards use different tests and different denominators. AAOIFI, Dow Jones, FTSE and MSCI do not agree with one another, so two methodologies can reach opposite conclusions about the same company in good faith. Read which standard an app applies before you read its answer.
No. We assess product types, such as a fixed-return deposit, a screened index fund or a staking arrangement, so the reasoning transfers to whichever provider you are reading. Naming a company in a verdict would be a claim about that company that we have no standing to make.
Where a holding earns a small amount of impermissible income, several standards require the investor to calculate that share and give it away rather than keep it. Standards differ on the basis of the calculation and on what is included, which is why our explainer sets out more than one method.
No, and it would be unlawful for us to try. This is educational research. Investment carries risk, including loss of capital, and any decision should be taken with a licensed financial adviser.

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This is educational content, not a fatwa or personalised financial advice. Investment carries risk, including loss of capital. Verify any specific product with a qualified Shariah scholar and a licensed financial adviser before investing.

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