Most of the investing world is open to Muslim investors. The restrictions are narrower than most people expect.
What is excluded
- Companies that earn significant income from interest (conventional banks, some insurers)
- Alcohol production and sales
- Gambling and casinos
- Adult entertainment
- Weapons and defence
- Pork products
- Tobacco
What is open to you
Technology, healthcare, consumer goods, real estate, green energy, retail, manufacturing. The majority of the global stock market is available.
The iShares MSCI World Islamic ETF (ISWD) holds over 350 companies across 23 countries. It excludes the prohibited sectors. Apple, Microsoft, Johnson and Johnson, Samsung — all included. HSBC, Barclays, beer companies — excluded.
The principles of halal investing are not unique to Islam. Avoiding harm-causing industries, ensuring transparency, sharing real risk — these are principles that ethical investors of all backgrounds apply. For Muslims, they come with a religious foundation rooted in the Quran and the guidance of the Prophet.