Mana is an educational platform. We're not regulated by the FCA and nothing here is a personal recommendation. Everything you see (ETF illustrations, goal projections, quiz results, AI responses) is general information to help you learn. Before investing, please do your own research and consider speaking to a regulated financial adviser.
ETFs · Index funds · Workplace funds · Stocks · Mana Credit · Compare halal products ↗ · Terms · PrivacyThe five screens in plain English, how to use the Zoya app step by step, what tainted income means, and where to find shariah certification on an ETF factsheet.
If you're only investing in a screened halal ETF like ISWD, you don't need to do this yourself: the screening is done for you quarterly by a shariah supervisory board.
But if you ever want to invest in an individual company, check a fund you're not sure about, or simply understand how the screening works, here's the full picture.
What does the company primarily do? If its core business involves alcohol, tobacco, conventional banking, gambling, adult content, weapons, or pork products, it fails immediately. This is a binary check: it doesn't matter how profitable or large the company is.
A company that finances itself heavily with interest-bearing debt is problematic. The standard threshold: total debt should be less than 33% of the company's total assets (or market cap, depending on the methodology). Companies that are mostly debt-funded fail this screen.
Some otherwise halal companies earn side income from interest: cash deposits, short-term bonds, etc. The threshold: interest income should be less than 5% of total revenue. Above that, the income contamination is too significant.
If a company's accounts receivable (money owed to it) exceeds 49% of its total assets, some scholars consider it to be effectively financing its customers on credit. This screen varies by methodology: AAOIFI and MSCI use slightly different numbers.
Similar to the receivables screen, a company sitting on a massive pile of cash invested in interest-bearing instruments raises questions. The threshold is typically cash plus short-term investments less than 33% of total assets.
Zoya is a free app that runs these screens for thousands of listed companies and tells you whether they pass or fail. Here's how to use it:
Even a halal company might earn a small amount of interest income, from its cash holdings, for example. This is called tainted income.
The purification principle: you calculate what percentage of the company's revenue came from impermissible sources, then donate that same percentage of your dividends or gains to charity.
Example: if 2% of a company's revenue was interest-based, you donate 2% of any dividend you receive to a charitable cause. This "purifies" the income. Most ETF providers publish a purification ratio annually, and it's usually less than 1%.
For a halal ETF like ISWD, look at the official iShares factsheet on the BlackRock website. You'll find:
This certification is reviewed and renewed annually. If a company in the fund fails re-screening, it's removed at the next quarterly rebalance. The process is transparent and audited.
For most investors: use ISWD or another certified halal ETF and let the supervisory board do the work. If you want to invest in individual companies, run them through Zoya first. If Zoya flags it as "Doubtful," look at the specific reason. Sometimes a company is on the borderline and scholars disagree. Use your own judgement and tawakkul.
Done reading?
Mark it as read so you can track your progress.
Do this now
Reading is only the first step. Here’s the action.
Download Zoya and check your first company →Ask Mana about this article →
Something didn’t click? Just ask.