the main business of the company cannot violate the Shariah, t is haram to invest in a company whose main business is alcohol, gambling, pork, night club activities
Income from non-sharia compliant investments should be less than 5 percent
Interest-bearing debt to total assets Should be less than 5 percent.
Illiquid assets to total assets ratio Should be at least 20% of fixed asset
The next criterion pertains to the comparison between Net Liquid Assets and Market Capitalization. Before delving into the criterion itself, let’s understand its rationale.
he final criterion in our rule set dictates that the ratio of non-compliant investments to total assets should be less than 33%.