Back to Learn ✅ Halal Screening
Compliant, Non-Compliant, and Doubtful
March 30, 2026 · 1 min read
When a stock is screened against Sharia criteria, it receives one of three statuses.
Compliant
The company passes both business activity and financial ratio screening. Its core business is permissible and its financial ratios fall within acceptable thresholds. This does not mean the company is "perfectly halal" — it means it meets the criteria of the chosen screening standard.
Non-Compliant
The company fails one or both parts of screening. Common reasons include:
- Core business involves prohibited activities (banking, alcohol, gambling)
- Financial ratios exceed the allowed thresholds
- Insufficient financial data available for screening
Doubtful (Mashbooh)
The company falls in a gray area. This may happen when:
- Financial data is incomplete or outdated
- Ratios are very close to the threshold boundaries
- The business model has mixed elements that scholars interpret differently
Important Context
Compliance status is based on a specific methodology and specific financial data at a specific point in time. It is a screening result, not a religious ruling. Statuses can change as company finances change.