The EGX 33 Shariah index includes companies screened per AAOIFI international standards: halal primary activity, debt ratio under 33% of market cap, cash & receivables under 33%, and prohibited revenue under 5%. This guide covers screening criteria, listed Islamic banks, zakat calculation on stocks, and profit purification. For educational purposes — consult a trusted Shariah authority for final rulings on your investments.
Company's core business is not prohibited (interest-based banking, alcohol, pork, gambling, tobacco, harmful media, destructive weapons, environmentally harmful industries).
Total debt divided by market cap (or trailing 12-month average market cap) must not exceed 33%. Some standards use total assets instead of market cap.
Cash plus receivables must not exceed 33% of market cap, to avoid trading cash at non-par prices (riba al-fadl).
Revenue from prohibited sources (interest, haram side activities) must be under 5% of total revenue. If it exceeds, the investor must purify their profits proportionally.
Book value of liquid assets (cash + receivables) must be below the company's total market cap, ensuring the stock represents tangible assets — not merely cash.
Banks operating on mudaraba, musharaka, and murabaha profit-sharing rather than interest. Their stocks are classified halal because the core business is Shariah-compliant.
These sectors usually pass Shariah screening because the core business is halal and debt ratios are relatively low. Verify each individual stock's compliance.
Stocks of companies whose primary business is halal (industry, agriculture, telecom, real estate, healthcare, etc.) AND which meet certain financial limits (debt ratio, prohibited revenue) are considered halal by most Islamic jurisprudence authorities. Fully-prohibited activities (interest-based banks, alcohol, pork, gambling, harmful media) are haram. EGX 33 tracks Shariah-screened stocks.
AAOIFI standards: (1) core business not prohibited; (2) debt ratio below 33% of market cap; (3) cash + receivables below 33%; (4) prohibited-source revenue below 5%; (5) liquid asset book value below total market cap. Failing any criterion disqualifies the stock.
EGX 33 is the official Shariah-compliant index of the Egyptian Exchange, launched in 2024. It includes stocks that pass Shariah screening. Composition is reviewed periodically based on ongoing compliance.
Key Islamic banks on EGX: Faisal Islamic Bank of Egypt (FAIT), ADIB Egypt, Al Baraka Egypt (SAUD). These operate on mudaraba and musharaka profit-sharing rather than interest. Their stocks are generally classified halal because their core business is Shariah-compliant.
Two methods based on intent: (1) Trader: 2.5% of market value at the zakat anniversary. (2) Long-term investor: 2.5% of your share of the company's zakatable assets (cash, receivables, inventory). Method 1 is simpler; method 2 requires balance-sheet data.
Purification removes the prohibited portion from stock profits. If a company earns, say, 2% of revenue from prohibited sources (interest), the investor calculates the same percentage of their share profits and donates it (without expecting reward) to cleanse the return.
Conventional banks that depend on interest for primary revenue are considered haram by most contemporary scholars. This excludes NBE, Banque Misr, CIB, QNB Alahli, and CIB from halal lists. Islamic bank alternatives: Faisal, ADIB Egypt, Al Baraka.
Technical analysis itself (studying charts and trends) is permissible. Short-term day trading with very high frequency is debated — some scholars consider it too close to gambling. Long-term investing in halal companies is uncontroversially allowed.
Yes. Islamic investment certificates at Faisal, ADIB, and Al Baraka are halal. Yields are variable (not preset) and depend on actual mudaraba investment profits. If the bank loses, returns can be affected.
Several Islamic mutual funds exist, managed by banks like Faisal Islamic and Al Baraka. These invest only in Shariah-compliant stocks and sukuk. Suitable for investors seeking full Shariah compliance without manual portfolio management.
⚠️ This guide is for educational purposes only — not a fatwa. Shariah judgment on each stock depends on current financials and jurisprudential interpretation. Consult a trusted Shariah authority (bank Shariah board, Egyptian Dar al-Ifta, Al-Azhar) before making investment decisions.
Complete list of Shariah-compliant stocks in the official EGX Shariah index. EGX rebalances the composition periodically based on Shariah and financial criteria.
Prices update intraday with a 1-minute delay. Source: official EGX Shariah index.