Short answer
Buying shares in a company with a lawful business is permitted: a share is a stake in ownership (International Islamic Fiqh Academy, resolution 63). Companies whose main business is unlawful are excluded by everyone. For lawful companies that borrow or invest at interest, the Academy lays down the principle of prohibition; AAOIFI and Islamic indices accept them within thresholds, with purification.
What the institutions say
Official positions, with their reference. The badge sums up the institution’s position, not an opinion of Assabile.
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International Islamic Fiqh Academy Organisation of Islamic Cooperation, JeddahUnder conditions
Shares in companies with a lawful business are permitted; those whose main business is unlawful are prohibited; for lawful companies that borrow or invest at interest, “the principle is prohibition”, and the decision was postponed for further study.
Resolution 63 (1/7), Jeddah, 1992; resolutions 77 (8/8), 1993, and 87 (4/9), 1995
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AAOIFI Accounting and Auditing Organization for Islamic Financial Institutions, BahrainUnder conditions
Accepts shares in lawful companies whose interest-bearing debt and interest-bearing investments stay below 30% of market capitalisation and whose non-compliant income stays below 5%, on condition that this income is purified.
Shariah standard 21 (financial papers: shares and bonds)
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Permanent Committee Council of Senior Scholars and Permanent Committee for Research and Fatwa, Saudi ArabiaDivided views
Saudi scholars are divided: some forbid shares in companies that deal in interest, others accept them within thresholds with purification; lists of “pure shares” are published for the Saudi market.
Fatwas of Saudi scholars on “mixed” companies
Positions are reported as they stand; other scholars may hold other views. Method and disclaimers
Depending on your country
- France
- The PEA (French share savings plan) accepts European shares: apply the screen to each company (balance sheet in the universal registration document). No Islamic ETF was eligible for the PEA in October 2026: see the fund directory.
- Morocco
- The Casablanca Stock Exchange does not publish an official Islamic index; you apply the screen yourself to the accounts of listed companies.
- Türkiye
- Borsa İstanbul publishes participation indices (BIST Katılım) whose composition follows compliance criteria; “katılım endeksine uygun” (eligible for the participation index) means that a share meets these criteria as of the review date.
- Gulf states
- Compliance lists are published for the Saudi, Emirati, Kuwaiti and Qatari stock exchanges by Shariah boards and research firms.
- United States
- The screener in this section pre-fills the figures for US-listed companies from their official reports.
A share is a stake in ownership
When you buy a share, you become a co-owner of a business and share in its profits and losses: it is a form of partnership, lawful in principle. The International Islamic Fiqh Academy confirmed this for companies with a lawful purpose (resolution 63 (1/7), 1992).
Three cases
- Unlawful main business (conventional banking or insurance, alcohol, gambling, weapons according to some, adult entertainment, tobacco…): forbidden by everyone.
- Lawful business, with no interest and no unlawful income: permitted; such companies are rare.
- Lawful business, but interest-bearing debt or investments, or a small unlawful activity: this is the case for almost all listed companies. The Academy laid down the principle of prohibition and postponed its decision (resolutions 77 and 87). AAOIFI and the Shariah boards of Islamic indices and banks accept them within thresholds, relying on the rule that the majority takes the ruling of the whole, and on the need to invest; other scholars maintain the prohibition.
The thresholds
For AAOIFI: interest-bearing debt and interest-bearing investments each below 30% of market capitalisation, and non-compliant income below 5% of revenue. Islamic indices (Dow Jones, S&P, MSCI, FTSE) use similar thresholds (33%), measured against average market capitalisation or total assets. The Shariah screener calculates these ratios for a company, method by method; the guide how to screen a stock explains where to find the figures.
Purification
The company’s share of non-compliant income, applied to your dividends, is given away: see dividends and the purification tool.
What remains forbidden in the way you invest
Buying on credit with interest, short selling, using options and contracts without delivery: see short selling and margin and options and derivatives.
The verses
ٱلَّذِينَ يَأْكُلُونَ ٱلرِّبَوٰا۟ لَا يَقُومُونَ إِلَّا كَمَا يَقُومُ ٱلَّذِى يَتَخَبَّطُهُ ٱلشَّيْطَٰنُ مِنَ ٱلْمَسِّ ذَٰلِكَ بِأَنَّهُمْ قَالُوٓا۟ إِنَّمَا ٱلْبَيْعُ مِثْلُ ٱلرِّبَوٰا۟ وَأَحَلَّ ٱللَّهُ ٱلْبَيْعَ وَحَرَّمَ ٱلرِّبَوٰا۟ فَمَن جَآءَهُۥ مَوْعِظَةٌ مِّن رَّبِّهِۦ فَٱنتَهَىٰ فَلَهُۥ مَا سَلَفَ وَأَمْرُهُۥٓ إِلَى ٱللَّهِ وَمَنْ عَادَ فَأُو۟لَٰٓئِكَ أَصْحَٰبُ ٱلنَّارِ هُمْ فِيهَا خَٰلِدُونَ ٢٧٥
Those who consume interest cannot stand [on the Day of Resurrection] except as one stands who is being beaten by Satan into insanity. That is because they say, "Trade is [just] like interest." But Allāh has permitted trade and has forbidden interest. So whoever has received an admonition from his Lord and desists may have what is past, and his affair rests with Allāh. But whoever returns [to dealing in interest or usury] - those are the companions of the Fire; they will abide eternally therein.
يَٰٓأَيُّهَا ٱلَّذِينَ ءَامَنُوا۟ لَا تَأْكُلُوٓا۟ أَمْوَٰلَكُم بَيْنَكُم بِٱلْبَٰطِلِ إِلَّآ أَن تَكُونَ تِجَٰرَةً عَن تَرَاضٍ مِّنكُمْ وَلَا تَقْتُلُوٓا۟ أَنفُسَكُمْ إِنَّ ٱللَّهَ كَانَ بِكُمْ رَحِيمًا ٢٩
O you who have believed, do not consume one another's wealth unjustly but only [in lawful] business by mutual consent. And do not kill yourselves [or one another]. Indeed, Allāh is to you ever Merciful.
Frequently asked questions
Are Apple, Tesla or LVMH shares halal?
Assabile does not publish a list: the status depends on the method and on the latest accounts, which change. The Shariah screener shows you the ratios for each method based on the company’s figures.
Can a share that was compliant yesterday stop being compliant?
Yes: if the company’s debt rises or its share price falls, a ratio may exceed the threshold. Indices review their lists every quarter; check your shares at least once a year.
Are shares in an Islamic bank permitted?
Yes in principle, since its business is compliant, subject to its Shariah supervision.