The Halal Investing Guide

A halal investment is an investment in which it is permissible for Muslims to participate according to the Islamic ethico-legal system (Shari`ah)1. A halal investment fund is a one that is structured, managed, and operated so as to offer investors access to halal investments. A certified halal investment fund is one that has been reviewed, audited, and inspected by an independent panel of experts in Islamic ethics and law who have issued (and thereafter periodically re-issue) a formal certificate of compliance stating that the fund is in fact halal. It should be noted that in order for the fund to be found to be halal, the management must also comply with the principles of the Shari`ah in matters pertaining to the operations of the fund. At Wahed, we have a full time Ethical Review Board that reviews our systems, business practices, and investments in order to ensure the strict Shari`ah compliance of the platform.

Halal investing brings a sense of responsibility to bear on how investments generate returns by preserving a concern for ethics and values. Investments in domains that may cause harm to human beings or other elements of creation, for that matter, (i.e. the environment) are prohibited. This is where socially responsible investing (SRI) and halal investing overlap (we’ll be discussing similarities and differences towards the end of the article). We are proud to make this form of investing accessible at Wahed with low account minimums and seamless online account opening and funding.

This simple guide will provide you with some practical tips to identify halal investment options.

Or, if you’d like to watch our educational series on YouTube with Sheikh Dr. Yasir Qadhi, click here.

1) AAOIFI-Conformant Shari’ah Board

Standards matter. Each and every halal investment fund must have appointed a Shari’ah board whose membership conforms to the competency standards of the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI), the leading standards issuing body for the halal financial services sector. There must be three members, at least two of whom are recognized Shari`ah experts with mufti-class. The Shari`ah Board’s role is to review, monitor, and advise on the structure, policies, and activities of the fund managers so as to insure that returns are permissible. A consistent, periodic, expert review aims to reduce the chances of generating returns from impermissible sources. Having a full time Shari’ah board is a necessity, which can not be satisfied by merely having a third party annual review.

2) Business and Financial Screening

There are two main screening levels for halal investments. A business screening by default refers to the review of a company’s business practices, products sold, and revenue sources. A company is prohibited from generating returns from the selling or producing of alcohol, pork products, weaponry, gambling, adult entertainment, or Riba (interest). The main business screening criteria are highlighted below:

  • Prohibition of interest (Riba)
  • Profit and loss sharing between the lender and the borrower
  • Prohibition of hazard or uncertainty (gharar), notably speculation
  • The lack of existence of an underlying asset, i.e. the obligation to back all investments with real assets
  • Prohibition of investments in forbidden assets (haraam)

To add on, there are certain limits imposed on a company’s debt levels to better control for excessive risk taking. The financial screen lays out three broad pre-defined financial ratios mentioned below.

  • Conventional debt/Total market capitalization < 30%
  • (Cash + Interest-bearing deposits)/Total market capitalization < 30%
  • (Total interest + income from non-compliant activities)/Revenue < 5%

Investments are considered halal only if a company’s financial ratios conform to those of AAOIFI set standards. Usually, if a company’s cumulative revenue from non-compliant activities and non-operating interest income exceeds 5%, it is required to purify its assets by giving that money to charity in order to maintain its halal status.

3) Operational Level Compliance

The company operating and managing the investment fund must also comply with Shari’ah regulations. The management company must refrain from taking on interest bearing debt and follow certain business practices.

4) Investment Policy

A fund must also establish an Islamic investment policy where the Shari’ah Board vets the investment products for Shari’ah compliance, and conducts ongoing due diligence on them. The policy will clearly outline the screening methods employed, the criteria used, and investment methodology implemented (selection process, absence of day trading, among other restrictions).

5) Purification Reports

Following up on point number one, a more transparent Shari’ah board will also provide the investors with a “purification report”. This will highlight any returns that may have been generated from impermissible sources, which are advised to be donated to charity to purify one’s income. Although this is not necessary, it helps the investors gain peace of mind by knowing the exact sources of their income. At Wahed, we provide our clients with an annual purification report to assure them that their returns are permissible, which further highlights our commitment to halal investing.

Final Tip – Socially Responsible and Halal Investing: Similarities and Differences

While many may think that halal investing is the same as SRI there are a few differences between the two concepts. SRI and halal investments both prohibit investments in certain industries such as alcohol, gambling and weaponry. The main difference is that halal investing prohibits the use of interest (Riba) and follows the aforementioned criteria on company leverage. SRI on the other hand focuses business ethics and practices such as community engagement and company diversity. The below Venn diagram will help you visualize the two concepts.

It is key to understand the criteria that defines halal investing to ensure that your returns inshaAllah will be halal. Unfortunately the “halal” stamp can be abused to attract business, so it is your duty as a Muslim or Muslimah to review the investment you’re getting into, and inshaAllah Allah will grant you barakah in your ventures.

1 These principles of the Shari`ah are derived from the Qur’an and authoritative life example (sunnah, literally ‘custom’) of the Prophet Muhammad (upon whom be peace).



  • abdurRaheem

    assalamu ‘alaykum wrwb

    what about ira and 401k plan offered by companies?

  • Wahed Support

    Wa Alaikum Assalam AbdurRaheem,

    Thank you for your interest! You would have to check the companies or instruments that these IRAs and 401(k) plans invest in. They may include bonds (which pay out interest) or companies operating in non-compliant industries such as conventional banking. The investment funds we invest in have been screened, reviewed and approved as halal by our Ethical Review Board. If you open an individual account, IRA, or rollover a 401(k) with Wahed, your money would be invested in approved and compliant funds.

    Feel free to reach out to us at [email protected]


  • Saheed

    Are cryptocurrency investments halaal?

  • Wahed Support

    Salam Saheed, thank you for your interest! We cannot give an answer to that question yet, but it is a topic that we will cover soon.

  • Aqeela majeef

    Is it for Canadian people too?

  • zia

    i am from pakistan, i ve few questions
    is it for pakistan as well?
    what i slimit of investment, minimum

  • Wahed Support

    Hello Zia, thanks for reaching out! We’re currently only on-boarding clients in the US but will be expanding internationally soon. Feel free to register at to stay informed!

  • Alvi Almas

    I am very much interested. I am an Indian. Can I join Wahed? How can I follow Wahed? What is the procedure to be part of Wahed?

  • Bamanga Raji

    Is your expansion drive covers West Africa and Nigeria inclusive? Do you partner with company’s that are into similar businesses ? Best regard.

  • Wahed Support

    Hello Bamanga, thank you for reaching out! We’ll send you more information shortly.

  • Ali

    Is buying a house on mortgage allowed?

  • Mulikat

    are there options for investing for non-US residents? I currently reside in the United Kingdom

  • admin

    Hello Mulikat,

    At the moment we are accepting US clients, we are unable to provide an exact date for our UK launch. InshaAllah we will be launching later in 2018.

    If you wish, you can go to and take our ‘Free Portfolio Recommendation’ in three minutes. This will show you how your portfolio would look like if you joined, and also enable us to inform you once we launch in the UK.

    Please let us know if you have any questions, we’re always happy to help!


  • Mustspha

    Right now I’m investing in 401k offred by my company Ecolab
    Can I rollover the 401k with you guys and how this is working ?

  • admin

    Salam Mustspha, thank you for your interest! it’s possible to rollover your 401k with us, we’ll email you more information on this shortly.

    Team Wahed

  • Saghir Adeel

    Asslam O Alakum WRT
    i am new to this investment, i want to understand how it work. let say if i invest $1000 and and how much halal profit i will be getting?

  • admin

    Hello Saghir, thank you for your interest!

    Your expected return depends on your risk profile and asset allocation. Users with a conservative profile are expected to earn less and be exposed to less risk than users with an aggressive profile, who will be exposed to more risk in exchange for a possibility of higher returns.

    You can view our portfolios’ historical performance at the end of the risk questionnaire. You can get started by clicking here.

    Please note that historical returns are not an indication or guarantee of future results.

  • T. Fiarz kamaldeen


    With strict screening policies and a sharia advisory comity , still how can there be “any returns that may have been generated from impermissible sources”

    Value your kind clarification.

    Jazakallah Kahira

  • Abdulazeez

    Am from Nigeria. Can I join you Halah Program?

  • Aamir

    As salamu Alaikum
    I am from India and wanted to know if I can invest in your fund? Secondly is there any tax banefit for investing in this fund under section 80(c)?

  • admin

    Wa Alaykum AlSalam Amir,

    We will be accepting clients from India soon!

    Team Wahed

  • admin

    Hi Abdulazeez,

    We will be accepting clients from Nigeria soon!

    Team Wahed

  • Mohammed Uddin

    What will be the exact contract between customer (me) and investment company (Wahed invt). Can we get details of the contract.
    Will the investment be done by Wahed exclusively in the Halal company OR Does it has to be on behalf of the customer?

    Just want to understand if the customer does not want to be part of the second contract between Wahed and Halal company whose share s will be purchased.

  • Ibrahim

    Salaam Wahed, please am in Ghana and I would like to know if I can be an investor of your company

  • Wahed Support

    Wa Alaikum Assalam, thank you for your question! Yes we do strict and thorough review prior to adding any security to the portfolio. However, in some cases, and since companies release financials quarterly or semi annually, we might find that some profits were generated from impermissible sources in newly released statements. In that case, we would like to advise our clients about this so that we’re as transparent as possible. If you have any questions please email us at [email protected]

  • admin

    Hello Ibrahim,

    You can definitely be an investor!

    To get started, please visit our website at http://www.wahedinvest.comand click on the ‘Free Portfolio Recommendation’. The report will show you how your potential portfolio would look like.

    Please let us know if you have any questions, we’re happy to help!


    Team Wahed

  • RS

    Assalam alaikum,

    Is it possible for someone from India to invest in your portfolios?

    Thank you.

  • Muhammad muhiddin musa

    Please I’m from Nigeria and already registered with you guys the only thing that left is funding.please can I continue the process or you are not available in our country Nigerian.

  • Wahed Editors

    Wa Alaikum Assalam, yes you can – we will email you more information shortly!

  • Wahed Editors

    Hello Muhammad, thank you for reaching out! We’ll email you more information shortly.

  • Deen Farooq

    Asalaamualaikum, could you please reference/link to an explanation or ruling as to why it is acceptable to invest in companies with up to 5% of impermissable earnings.

    JazakAllah khair

  • Farhaan

    Hello, I’m 17 years old I love trading but the case for halal , is there a beguinner training tool and how the system works (is it like other stock exchange) ???


    Hi, i have an account and founded(transferred) with 500/USD, I want to invest 5000+USD , my profile is Moderately Conservative ,
    I don’t know about the estimated/expected profit/ loss i might have, is there some one I can consult with, so that i can decide i will go with this or other investment opportunity i have.

    Jazak Allah Khair.

  • Sinan


    I was wondering how you get approval for companies which have interest based loans within their companies.
    Is there a list of global equities which you probably invest in and the Sharia compliancy of it?

    When do you expect to be active in Netherlands?

    thanks sinan

  • Qazim

    Eselamu Alejkum!

    Very great for this opportunity!
    I am from Kosovo and vet interesting to be an investor here wahedinvest is possible?

  • Wahed Editors

    Salam Ali,

    Thank you for your interest in Wahed!

    We currently do not deal in Cryptocurrencies. They are under review by various Islamic Scholars, however, we cannot comment on its permissibility at the moment.

    If you would like to learn more about Wahed and how your account works, you can watch an explainer video here:

    To get started, please visit our website at http://www.wahedinvest.comand click on the ‘Free Portfolio Recommendation’. The report will show you how your potential portfolio would look like.

    Please let us know if you have any questions, we’re happy to help!


  • Wahed Editors

    Wa Alaykum Alsalam Qazim,

    Unfortunately, we are not accepting clients from the Republic of Kosovo at the moment.


  • Mohammad yussuf

    I am indian working in Qatar can I invest my money in wahed invest


    Asslamualaikum………It would be better if you have Fund Transfer using Debit Cards…Is it possible in the near future?

  • Wahed Editors

    Wa’alaykum Assalaam,

    Thank you for your interest in Wahed!

    We are pleased to inform you that we are now accepting clients from India and Qatar!

    Our process is very simple and can be done in a few clicks.

    We’re making halal investing much more accessible. You do not have to worry about managing your investment we’ll do it for you. Our process is simple:

    – You answer a few questions, which would enable us to evaluate your risk tolerance and ideal strategy
    – We recommend a portfolio that matches your risk profile
    – Sign up and fund your account
    – Sit back and monitor your performance

    You may visit this link to get started

    Please let us know if you have any other questions.

  • Wahed Editors

    Unfortunately, we do not support Credit/Debit cards at the moment. We are looking to add this payment method in the future but cannot confirm a timeline at this stage.

    Right now we only support the normal wire transfer through clients’ banks and TransferWise.

  • Stanley Kelvin

    Am from Nigeria I would love to join but I don’t know I am going to be able

  • Ajayi Fatima

    salaam alaikum I am from nigeria can I invest with wahed


    Assalamou ralaykoum Brother Wahed,

    I would like if you can elaborate on different portfolios and how much you can start with each one of them? Also if you do have some videos for beginners like me that explain how to invest in an easy way.


  • Wahed Editors

    We are pleased to inform you that we are now accepting clients from Nigeria!

    Our process is very simple and can be done in a few clicks. First, you sign up and open an account with Wahed. You can then choose the level of risk you wish to take. Once your account is active, you can immediately fund it and we will place the trades on your behalf in a diversified portfolio. All you need to do then is sit back and monitor your performance.

    You may visit this link to get started

    Please let us know if you need any assistance and we will be glad to help you.

  • Wahed Editors

    We are pleased to inform you that we are now accepting clients from Nigeria!

    Our process is very simple and can be done in a few clicks. First, you sign up and open an account with Wahed. You can then choose the level of risk you wish to take. Once your account is active, you can immediately fund it and we will place the trades on your behalf in a diversified portfolio. All you need to do then is sit back and monitor your performance.

    You may visit this link to get started

    Please let us know if you need any assistance and we will be glad to help you.

  • Wahed Editors

    Wa’alaykum Assalaam,

    Thanks for reaching out.

    Wahed is an online halal investment platform, our aim is to make Halal investment accessible all around the world with 3 different platforms, US, UK & Global. It is the first robo-advisor aimed towards Halal investing with a Sharia-compliant platform with as low as $100 investment.

    Based on the questionnaire filled by you, we work on optimizing the portfolio by finding the correct combination of securities that can provide the highest potential return with your risk appetite. We use the Modern Portfolio Theory to optimize and manage your portfolio at a fraction of the cost of most conventional wealth managers.

    Our process is very simple and can be done in a few clicks. First, you sign up and open an account with Wahed. You can then choose the level of risk you wish to take.

    Once your account is active, you can immediately fund it and we will place the trades on your behalf in a diversified portfolio. All you need to do then is sit back and monitor your performance.

    You can also watch a short video on our Youtube channel which explains how your money would be invested,

    Please feel free to reach out if you have more questions.

    Team Wahed

  • abdullahi

    assalamu alaykum

    i would like to know if the platform is available for investors in kenya?

  • Wahed Editors

    Hi Abdullahi,

    Yes, we are accepting clients from Kenya!

    Team Wahed

  • Auwal M.

    How soon will you be accepting clients from Nigeria?

    Thank you

  • Mehmood Saddique

    I am from pakistan, i have few questions
    is it for pakistan as well?
    If yes then how can i deposit in my account?

  • Wahed Editors

    Hello Mehmood, thank you for reaching out! We are pleased to inform you that our platform now accepts clients from Pakistan. To start investing, please download our App (Wahed Invest) which is available for both Android and IOS users. You can conveniently fund your Wahed account using any credit/debit card. If you have any further questions, please email us at [email protected] and we’d be happy to assist you!

  • Abdullah

    Aslmo alkum sir I am from Pakistan how minimum money invest in wahad trading? Sir there is copy /monterize trading options have or not Sir I want to invest in wahad halal trading only just to monterize my acount and Sir there options of online banking I want to fund online meth

  • biliamonu saleem

    i am from nigeria. can i also invest as well

  • Muhammad

    Salaam alaikum,
    I was very pleased to hear you’re now accepting clients from Nigeria, as I myself am Nigerian and have been waiting for such an opportunity. However, when I followed the link you provided: it is instead telling me about a wait list. Is this normal or have your Nigerian operations not kicked off yet?


  • azan

    aslam o alikum
    im from pakistan azan imran
    im intersted to invest can you plz guide me and tell how to invest and use that

  • Wahed Editors

    Wa Alaikum Assalam Muhammad,

    Thank you for your interest!

    Please visit to get started 🙂

  • Wahed Editors

    Salam Auwal,

    Thank you for your interest! Yes of course 🙂

    Visit to get started today.

    If you have any questions you can email us at [email protected]

  • Md Wasim Khan

    I am from India, can I invest in wahed?

  • Amiri Hajj

    Salam Aleikum, bro Wahed!

    I am from Sweden, can i invest in Wahed?

  • Wahed Editors

    Salaam Amiri,

    Thank you for your interest!

    We are working towards launching in Sweden but cannot provide a timeline at this point.

    You may join our waitlist by visiting this link: This will also enable us to notify you once our service is available in your country.

    We look forward to serving you as an investor soon.

  • Abdul Latif

    السلام عليكم و رحمة الله و باركاته

    I am looking to invest.

    Few questions I have:

    1. If I invest regularly around £100 per month what returns can I expect.

    2. If my financial status changes and I need to withdraw all of my funds how easily is this done?

    3. How soon can I withdraw profits after my initial investment?

  • Wahed Editors

    Salaam Abdul, thank you for your interest! The answers to these questions, and more, are available on the FAQs page of our website. You may visit our website then click LEARN > FAQs or simply click this link for UK investors:

    Should there be any further questions that are not available on the FAQs page, you may email them to [email protected]. Thank you!

  • Javid

    Mr Azan,
    Have you invested with Wahedinvest?
    How is your experience?

  • ghazali

    salam. any affiliate plan for wahed invest?

  • Wahed Editors

    Salaam Ghazali,

    Please email us at [email protected] for us to assist you more efficiently regarding your question on our affiliate programs.

    Thank you!

  • Ifteakar mohammad sadi


    Can I meet with the instructor of WAHED Malaysia branch to start my trading? Because I want to invest my money in halal business.

  • Wahed Editors

    Salaam, thank you for your interest! Can you please send us an email to [email protected] so we can assist you better? Looking forward to hearing from you. Thank you!

  • hena

    can i join from bangladesh………….?

  • Wahed Editors

    Hi, thank you for your interest!

    Yes, you absolutely can.

    Kindly visit download our app to get started or simply visit If you require any assistance in signing up, feel free to email us at [email protected].

  • Huzaif


    what if the Financial screening Ratios change for worse in subsequent years after we have invested ?


  • Wahed Editors


    Financial screening ratios are being revisited and re-evaluated by the fund manager. This is usually done on a quarterly basis where the companies will be reviewed after the financial statements are released and they remove/add companies accordingly. For any further questions, please email us at [email protected] so we can assist you more efficiently. Thank you!

  • Fahad ahmed

    Sir i m from pakistan and i m intrested in investing in wahed can i be investor from pakistan

  • Wahed Editors

    Thank you for your interest in Wahed. Yes, we are now accepting clients from Pakistan. Kindly visit our website at to get started!

  • ahmed galal

    are accepting clients from egypt?
    Also, do you offer investment options that offer only halal companies with zero debt/interest ?
    I know AAOIFI sets higher thredholds, but i was hoping if more strict halal options exists.

  • Wahed Editors

    Hello Ahmed, yes, we do accept clients from Egypt. For us to better answer your questions and assist you, kindly email us at [email protected]. Thank you!

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