How we decide what's halal.
Every DSE-listed company on mCapital goes through the same transparent screening process. Here's exactly how a stock earns its compliance verdict.
Business activity screen
We first check what the company actually does. Any business whose core revenue comes from interest-based finance, alcohol, gambling, tobacco, conventional insurance, or other prohibited activities is marked non-compliant — regardless of its financials.
Financial-ratio screen
Companies that pass the activity screen are tested against financial thresholds: interest-bearing debt relative to market value, non-compliant income as a share of revenue, and the proportion of cash and interest-bearing securities.
Purification guidance
For borderline-compliant stocks that earn a small amount of impermissible income, we estimate the portion you should purify (donate) so the rest of your returns stay halal.
The financial thresholds we apply.
A company must clear all of the following to be considered Shariah-compliant. These thresholds follow widely accepted AAOIFI screening principles.
What a verdict looks like.
A pharmaceutical manufacturer
Core business is permissible, interest-bearing debt sits at 12% of market cap, and non-compliant income is under 1%. Clears every screen — safe to invest with no purification required.
A conventional bank
The core business is interest-based lending, which is a prohibited activity. It fails the business-activity screen outright, so the financial ratios are never even reached.
Screening is an ongoing process — a company's compliance can change as its financials shift each quarter. mCapital re-screens holdings and alerts you if a stock you own moves out of compliance.
See the verdict on every DSE stock.
Open the app to browse the market with a clear halal verdict and full reasoning on every company.
Open the app