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AAOIFI vs Other Screening Standards
March 30, 2026 · 1 min read
Several organizations have developed Sharia screening methodologies. While they share the same principles, the specific thresholds and denominators differ.
Major Standards
- AAOIFI (Standard 21): Uses market capitalization as the denominator. Debt and interest thresholds at 30%. Widely used globally.
- Dow Jones Islamic Market (DJIM): Uses 24-month average market cap. Thresholds at 33%.
- S&P Shariah: Uses 36-month average market value. Debt and cash at 33%, receivables at 49%.
- MSCI Islamic: Uses total assets as denominator. Thresholds at 33.33%.
- FTSE Shariah (Yasaar): Uses total assets. Debt and cash at 33.33%, receivables at 50%.
Why They Differ
Different scholars and advisory boards weigh the same principles differently. Some prefer market cap (reflecting market sentiment), others prefer total assets (a more stable accounting measure).
Consistency Is Key
A stock might pass under one standard but fail under another. Rather than searching for the most lenient standard, many scholars emphasize choosing one methodology and applying it consistently across all holdings.