Shariah Guidelines

COMPANY SELECTIONS – No Investments may be made in:


Companies whose interest-bearing debt to equity ratio is more than 33%. Equity is the company's enterprise value. This applies when investing in existing business. For companies yet to be formed, the debt to equity is zero.


The portfolio must not be invested in companies involved in the following businesses:

  • Manufacture and/or sale/distribution of alcohol, tobacco, pork, music and pornographic productions.
  • Restaurants and hotels/motels except those not selling alcohol.
  • Operators of gambling casinos and manufacturers of gambling machines.
  • Operators of movie theaters and cable TV companies.
  • Financial services (banks, brokerage firms, investment funds that invest in companies that engage in the restricted activities, insurance companies, etc.).
  • Defense and weaponry



The following instruments or any derivatives there from must not be used in the portfolio:

  • Future contracts of all kinds
  • Options contracts of all kinds
  • Swaps
  • Short sales
  • Other instruments including convertible debentures and bridge-financing where any of its components involve the payment or receipt of interest either in cash or in kind.

Approved by: Dr. Mohamed Elgari