How do I make a halal watch list

**Quick take ➡️ Yes—you can absolutely build a Sharia-compliant (“halal”) watch list.** Here’s a practical, step-by-step recipe you can reuse any time you scout for new ideas. 📜🕌 --- ### 1. Pick (and stick to) a recognised screening standard Most Muslim investors lean on one of three widely cited rule-sets: | Framework | Core Business Filters | Key Financial Filters* | |-----------|----------------------|------------------------| | AAOIFI | < 5 % revenue from alcohol, pork, gambling, conventional finance, weapons, adult media, etc. | • Total interest-bearing debt ÷ market-cap < 30 % • ( Cash – short-term debt ) ÷ market-cap < 30 % | | MSCI Islamic | Same sectors as AAOIFI | • Debt < 33.33 % of total assets • Cash & interest-bearing securities < 33.33 % of total assets | | Dow Jones Islamic | Same sectors | • Debt < 33 % of market-cap • Cash < 33 % of market-cap | \*Percentages differ slightly by board—pick one and be consistent. --- ### 2. Run the business (qualitative) screen 🔍 Exclude companies whose primary line of business is haram. Typical red-flags: conventional banking, insurance, alcohol, gambling, pork, tobacco, adult media, weapons, and some entertainment segments. **How to do it quickly:** • Most financial terminals (including Ainvest) let you filter by GICS/NAICS sector codes. • If you own a Zoya or Muslim-X subscription, import their “Allowed” tickers straight into your favourite broker. --- ### 3. Apply the numerical (financial) screen 🧮 1. Pull the latest balance-sheet items and market-cap. 2. Plug the ratios required by your chosen framework. 3. Drop names that miss **any** ratio—Sharia boards don’t average them. **Example using Ainvest’s FinScreener** (AAOIFI style): ```python from ainvest import FinScreener # Already loaded in your workspace df_halal = FinScreener( "US Stock not in Alcohol, Gambling, Tobacco, Bank; " "interest-bearing debt/market cap < 30% and " "cash_and_short_term_investments/market cap < 30% ; " "debt_to_mktCap, cash_to_mktCap, sector" ) ``` The DataFrame prints instantly—save the resulting ticker column as your draft “Halal Watch List”. *(If a column name differs, just inspect `df_halal.head()` and adjust.)* --- ### 4. Park everything in a live watchlist 📋 1. Import the ticker set into your broker / Google Sheets / Ainvest portfolio tab. 2. Add custom columns for: • Halal status (“✓” or “⚠️”) • Next review date (quarterly is typical) • Dividend purification ratio (if you accept dividends) 3. Re-run the screen after every earnings release—leverage a Zapier or Python script to automate it. --- ### 5. Keep an eye on **events that can flip halal status** 🚨 • New M&A deals (e.g., a tech firm buying a gambling company) • Large debt-financed buybacks • IPO lock-ups expiring (capital structure can change fast) • Spin-offs (each entity must be re-screened) --- ### 6. Extra resources worth bookmarking • **Zoya**, **Islamicly**, **IdealRatings** – independent compliance scores • AAOIFI Sharia Standards – free PDF, gold-standard definitions • S&P Dow Jones Islamic Indices factsheets – good for benchmarking --- ### Mini-FAQ 🤔 • **Is Tesla (TSLA) halal?** Under AAOIFI and MSCI screens it generally passes today—low interest-bearing debt and a halal primary business. Always recheck every quarter. • **What about dividends?** Purify by donating the percentage of payout derived from haram income (often < 5 %). Both Zoya and Islamicly calculate this automatically. --- ### Ready to try? Fire up the screener, save the tickers, and you’ll have a dynamic, Sharia-compliant watch list in minutes. 🟢 *Quick check-in:* Which framework (AAOIFI, MSCI, or Dow Jones) feels right for you? Knowing that helps fine-tune future screens! 🎯