Shariahscreened

Shariahscreened is a term used to describe investments or financial products that are vetted to ensure compliance with Sharia, the Islamic legal code. This screening process typically involves adhering to principles that prohibit certain activities and financial instruments deemed unlawful in Islam.

Key prohibitions in Sharia-compliant finance include the charging or receiving of interest (riba), which is forbidden. Investments that are considered excessively speculative or involve excessive uncertainty (gharar) are also generally avoided. Furthermore, industries and businesses involved in activities such as alcohol production, pork, gambling, conventional financial services based on interest, and adult entertainment are typically excluded from Sharia-screened portfolios.

The screening process is often conducted by Sharia scholars or Sharia advisory boards who review the underlying assets and business practices of companies or funds. Investments that meet the criteria are then considered Shariah-compliant. This allows observant Muslims to invest their wealth in a manner consistent with their religious beliefs.

There are various organizations and platforms that offer Shariah-screened investment options, ranging from mutual funds and exchange-traded funds (ETFs) to individual stocks and sukuk (Islamic bonds). The availability and specific methodologies for screening can vary between different providers. The concept aims to provide ethical and religiously permissible investment opportunities for a global Muslim population seeking to align their financial activities with Islamic values.