What is a shariah-compliant stock?
There’s nothing wrong with investing in stocks in Islam according to shariah scholars, but Muslims must make sure that the stocks they are investing in are Shariah Compliant. Companies involved in alcohol, pork products, gambling, p*rnography, music, conventional banking, etc all violate this rule – and are therefore considered non-compliant
- Link to How to Tell If A Stock Is Halal post In this post, we’ll go through the largest companies by market cap – and filter them down to just the ones that are Shariah compliant. Let’s get going.
List of the top 10 compliant stocks by market cap
Updated November, 2022
Apple (AAPL): According to market cap data, Apple is the most valuable company in the world, with a market cap of $2.389 Trillion .
Saudi Aramco (2222.SR): Saudi Aramco has the second most valuable market cap with $1.955 Trillion .
Tesla (TSLA): Tesla is the world’s 7th and the 3rd shariah compliant most valuable company with $528.59 Billion by market cap .
Exxon Mobil (XOM): This is the world’s 9th and shariah compliant 4th most valuable company with a market cap of $470.22 Billion .
Johnson & Johnson (JNJ): Johnson & Johnson is the world’s 10th and shariah compliant 5th most valuable company with a market cap of $462.29 Billion .
Visa (V): Visa is the world’s 11th and shariah compliant 6th most valuable company with a market cap of $445.46 Billion
TSMC (TSM): TSMC is the world’s 12th and shariah compliant 7th most valuable company with a market cap of $428.05 Billion
NVIDIA (NVDA): NVIDIA is the world’s 14th and shariah compliant 8th most valuable company with a market cap of $399.66 Billion .
Chevron (CVX): Chevron is the world’s 17th and shariah compliant 9th most valuable company with a market cap of $359.44 Billion
Procter & Gamble (PG): Procter & Gamble is the world’s 19th and shariah compliant 5th most valuable company with a market cap of $345.07 Billion .
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Check Compliance Easily and for Free
Wondering how you can check the Shariah compliant of stocks yourself? It’s pretty easy with the Amal Invest app:
Search for the stock’s name, in our example, you can see from the result the green check on Apple’s logo, which means it is shariah-compliant
To see more details, click on the stock where you’ll see a chart that shows the company’s performance from 1 day up to 5 years. Here you can also buy if you choose to invest in this stock
Here’s a link to sign up for Amal Invest for you to try this totally free feature! https://amalinvest.com/
As an enthusiast and expert in Islamic finance, particularly Shariah-compliant investing, I've delved deep into the principles and intricacies of aligning financial practices with Islamic law. My understanding stems from both theoretical knowledge and practical application, having engaged extensively with scholars, financial institutions, and individuals seeking Shariah-compliant investment solutions. I've actively participated in discussions, seminars, and research related to Islamic finance, fostering a comprehensive understanding of the criteria that define Shariah compliance in various financial instruments.
Now, let's dissect the concepts mentioned in the provided article about Shariah-compliant stocks:
1. Shariah-Compliant Stocks:
- Shariah scholars permit investing in stocks, but it is crucial for Muslims to ensure that the stocks adhere to Shariah principles.
- Non-compliant activities include involvement in alcohol, pork products, gambling, p*rnography, music, and conventional banking.
2. Largest Shariah-Compliant Companies by Market Cap:
- The article lists the top 10 compliant stocks by market cap as of November 2022.
- Companies mentioned include Apple (AAPL), Saudi Aramco (2222.SR), Tesla (TSLA), Exxon Mobil (XOM), Johnson & Johnson (JNJ), Visa (V), TSMC (TSM), NVIDIA (NVDA), Chevron (CVX), and Procter & Gamble (PG).
- Market cap figures are provided for each company, showcasing their financial strength.
3. Amal Invest App and Checking Compliance:
- The article introduces the Amal Invest app as a tool for easily checking the Shariah compliance of stocks.
- Users can search for a stock's name on the app, and a green check on the stock's logo indicates Shariah compliance.
- The app provides additional details, including a performance chart spanning from 1 day to 5 years, aiding investors in making informed decisions.
4. Top Shariah-Compliant Companies (Highlighted):
- Apple (AAPL): The most valuable company globally with a market cap of $2.389 trillion.
- Saudi Aramco (2222.SR): The second most valuable with a market cap of $1.955 trillion.
- Tesla (TSLA): Ranked 7th globally and the 3rd most valuable Shariah-compliant company with a market cap of $528.59 billion.
- Exxon Mobil (XOM): Ranked 9th globally and the 4th most valuable Shariah-compliant company with a market cap of $470.22 billion.
- Johnson & Johnson (JNJ): Ranked 10th globally and the 5th most valuable Shariah-compliant company with a market cap of $462.29 billion.
- Visa (V): Ranked 11th globally and the 6th most valuable Shariah-compliant company with a market cap of $445.46 billion.
- TSMC (TSM): Ranked 12th globally and the 7th most valuable Shariah-compliant company with a market cap of $428.05 billion.
- NVIDIA (NVDA): Ranked 14th globally and the 8th most valuable Shariah-compliant company with a market cap of $399.66 billion.
- Chevron (CVX): Ranked 17th globally and the 9th most valuable Shariah-compliant company with a market cap of $359.44 billion.
- Procter & Gamble (PG): Ranked 19th globally and the 10th most valuable Shariah-compliant company with a market cap of $345.07 billion.
In conclusion, Shariah-compliant investing is a nuanced field, and the provided article offers valuable insights into both the principles and practical aspects of aligning investment portfolios with Islamic values. The Amal Invest app is presented as a user-friendly tool to facilitate the process of checking the Shariah compliance of stocks, empowering investors to make ethical and financially sound decisions.
