Shariah Compliant Stocks: The Complete Halal Investing Guide
What makes a share Shariah compliant, who decides, how to find compliant stocks yourself and the mistakes beginners make along the way.
Stock market insights and practical guides to halal investing and personal finance
Too many savers keep their money in cash to avoid riba while inflation slowly eats into it. Waleed Qaisar works in Islamic wealth management and writes here about halal ways to grow that money, along with global markets, the Pakistan Stock Exchange and personal finance.
Browse by topic
Stock marketHow shares, exchanges and prices work.
InvestingBuilding and holding a long-term portfolio.
Halal investingShariah screening, halal stocks and platforms.
PSX and PakistanInvesting in Pakistan, from home or abroad.
Personal financeIncome, inflation, saving and retirement.
CalculatorsDividend, DRIP and retirement calculators.
New to investing? Read these four in order
Start with how the market works and finish with the most common mistake new investors make.
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Learn how the market works
What Is the Stock Market and How Does It Work?
What people mean when they say the market was up today.
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Make a start
How to Start Investing in Stocks: A Beginner's Guide for 2026
For anyone who wants to invest but doesn't know where to begin.
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Pick your approach
Stock Investing vs Stock Trading: Understanding the Difference
Two very different ways to use the market, and which suits a beginner.
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Avoid the common mistake
A Common Investment Mistake Most People Make, and How to Avoid It
Why investing money you'll need soon catches out so many new investors.
Halal investing, from global markets to the PSX
A share counts as Shariah compliant only when it passes two tests. The company's core business has to be permissible, and its balance sheet has to stay inside set limits on interest-bearing debt, non-compliant investments and non-compliant income.
The exact limits depend on which rulebook a screener follows. Many global screeners use AAOIFI's Shariah Standard No. 21, while on the Pakistan Stock Exchange the screens decide which companies can enter the KMI-30 and the PSX-KMI All Share Index. A company can move in or out as its accounts change, so check a stock's current status before you buy.
What changed in 2026
In February 2026 the SECP approved stricter screening for the PSX-KMI All Share Index. The ceiling on interest-bearing debt fell from 37% to 33% of total assets, and qualifying companies now get a three-, four- or five-star compliance rating. Plenty of guides online still quote the old 37% figure.
Source: SECP announcement, reported by Business Recorder, 26 Feb 2026
Understand what you're buying
How exchanges work, what the numbers in a company's accounts mean, and when a share price is actually good value.
What Is a Stock Exchange? How It Works and How Listings Happen
The regulated marketplace where listed shares are bought and sold.
Fair Value & Earning Power: How to Tell If a Stock Is Worth Buying
Why two analysts can look at one stock and reach different fair values.
Key Financial Ratios & Statement Terms Every Stock Investor Should Know
Reading the business behind the share price, not just the chart.
What Are Mutual Funds and How Do They Work?
How pooled funds buy a spread of assets on behalf of many investors.
Personal finance
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Inflation vs Compounding: Why Your Money Is Shrinking and How Investing Helps
Why cash sitting in a bank account can quietly lose value.
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Passive vs Active Income: Key Differences, Examples, and Taxes
Income you work for versus income your assets earn, and how each is taxed.
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Why Most People Never Experience the Real Power of Stock Market Compounding
The gap between the returns people expect and the ones they actually get.
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How to Track Your Investment Portfolio Using Yahoo Finance
One place to see how your stocks, ETFs, funds and crypto are doing.
Calculators
Run the numbers before you decide.
- Dividend yield calculatorWork out the yield on any dividend stock.
- Dividend reinvestment (DRIP) calculatorSee how reinvested dividends grow a holding.
- How long will my money last?Test a savings balance against a withdrawal rate.
- QQQ dividend calculatorYield, payment dates and growth rate for Invesco QQQ.
- Yield maintenance calculatorEstimate a commercial mortgage prepayment penalty.
About Waleed
Waleed Qaisar is a Business Development Manager, Wealth at Hejaz, a global Islamic finance group. From Western Australia he works with wholesale and high-net-worth investors, professionals and business owners who want to move out of cash savings and conventional products into Shariah compliant funds, superannuation and home finance.
After a degree in Accounting & Finance he chose Islamic finance over conventional banking. He has supported more than 100 clients, from first-time investors to high-net-worth Muslims moving their whole portfolio to Shariah screened investments, and he runs community sessions on compounding, inflation and ethical investing.
This site is where he shares his own opinions and guides, for readers in Pakistan, Australia and anywhere else Muslims want their savings to grow without interest.
Views on this site are Waleed's own and do not represent Hejaz or any other employer. Articles are general information and education, not personal financial advice or a religious ruling. Share prices can fall as well as rise. Check a company's current Shariah status and your own circumstances before you invest. Read the full disclaimer