Halal stock investing is a principled commitment, but executing it in practice is harder than most think. 

Unlike conventional investing, it requires one extra layer of due diligence: understanding which criteria qualify a stock as halal, then evaluating every potential investment against them before buying.

Thankfully, many halal stock screeners available today simplify this process. They apply comprehensive halal screening criteria and then identify Shariah-compliant stocks from a given universe of stocks (or ETFs).

In this article, we will help you identify the relevant halal principles and provide you with a list of popular stocks that comply with Islamic law. 

With this, you will have a list of halal stocks you can choose from and also know enough to evaluate other stocks that come across your radar. 

We’ll cover: 

1. What makes a stock halal? 
2. Using halal stock screeners: Top halal stocks in the market
3. How to execute halal investing in the UAE

Do you want to learn more about Islamic investment options that are available to halal investors? Subscribe now to Sarwa’s Fully Invested Newsletter for regular updates from the global economy. 

1. What makes a stock halal? 

Is the stock market halal? 

This is a common question many Muslim faithful ask as they consider investing in the stock market. 

Most Islamic scholars agree that investment in shares is permissible (not inherently haram) as long as certain halal standards are met. These standards result from reflections on the Quran and the hadith. 

There are four such conditions, according to Mufti Taqi Usmani, a Pakistani Islamic Finance Scholar and author of Principles of Sharia Governing Investment in Shares and Equity Funds: 

• The company’s main business should not violate the Shariah. This condition excludes the stocks of insurance companies and conventional banks that provide financial services at interest, companies manufacturing, selling, or offering liquors, pork, and non-halal food (like haram meat), and companies involved in gambling, night club activities, and pornography.

• The halal investor should express disapproval (preferably at the Annual General Meeting) if a company whose business is halal invests surplus cash in interest-bearing accounts or borrows money at interest. 

• If income from interest-bearing accounts is a part of the income paid out as dividends, the portion of the dividend corresponding to the portion of net income that comes from interest-bearing accounts should be given out as charity.

For example, if 5% of the company’s net income is from interest-bearing accounts, then 5% of the dividend must be given to charity. 

• The shares of the company are negotiable only if the company owns some non-liquid assets.

MSCI, the global financial services firm, uses a related methodology in constructing its Islamic indexes. 

It divides the relevant halal criteria into two: 

• Business screening criteria: MSCI excludes companies involved in non-Sharia-compliant activities like alcohol, tobacco, pork-related products (and other haram food products), cannabis, interest-based financial services, gambling, casinos, adult entertainment, defence, weapons, music, cinema, hotels, and online dating. 

• Financial ratios criteria: These Islamic guidelines seek to ensure that companies involved in halal activities don’t generate too much of their income from interest-bearing accounts, take on too much debt, and don’t rely too much on credit sales. 

The first criterion states that the cash plus interest-bearing securities should not exceed 33% of total assets (for the Islamic Index Series) or average market capitalisation (for the Islamic Index M-Series). 

For the second criterion, total debt should not exceed 33% of total assets (for the Islamic Index Series) or average market cap (for the Islamic Index M-Series). 

And the third criterion states that the accounts receivable should not exceed 33% of total assets or average market cap.  

Similarly, the sum of cash and accounts receivable should not exceed 70% of total assets (for the Islamic Index Series) or 46% of average market cap (for the Islamic Index M-Series).

MSCI also adopts the dividend purification criterion, which they explain as follows: 

“If a company derives part of its total income from interest income and/or from prohibited activities, Sharia investment principles state that this proportion must be  deducted from the dividend paid out to shareholders and given to charity.” 

Now that we have seen that stocks can be part of the Islamic investment options, let’s consider how to select the stocks that meet these criteria. 

There are also three criteria set by the Accounting and Auditing Organisation for Islamic Financial Institutions. According to Shariah Standard No 21, for a stock to be halal:

• Debt must not be more than 30% of market capitalisation,
• Cash must not be more than 30% of market capitalisation, and
• Impure revenue (from prohibited activities) must not exceed 5% of total revenue. 

2. Using halal stock screeners: Top halal stocks in the market

Many fintech platforms provide halal stock screeners that provide you with a halal stocks list based on the conditions we have reviewed above. 

These screeners give you a good place to start if you are researching which halal stocks to invest in. 

For example, Sarwa’s Shariah Screener works by including a “halal” tag on the stocks that abide by the Sharia principles above (particularly the one set by AAOIFI). 

The badge will not appear if the asset is not Shariah-compliant, its halal status is doubtful, or there is insufficient information available to decide one way or the other.

For those with the halal badge, we provide further details on why the stock is halal and include a grading system that shows the different levels of halal compliance (from C-, being the lowest grade, to A+, being the highest grade).

Sarwa also offers real-time Halal status updates since the rating of these stocks changes with the underlying data. A stock that is non-compliant today can become compliant when the company releases new quarterly reports or when market cap data changes, and vice versa.

Below is an example of a Shariah Compliance Report we provide for each halal stock: 

Below are 28 stocks you will find on Sarwa’s halal stock list as of May 29, 2026:

Disclaimer: The halal status of these stocks can change. You should check the Sarwa Sharia Screener for the latest data.

1. ARM Holdings (ARM)

Overview

ARM Holdings designs semiconductor architectures and licenses chip designs used in smartphones, AI systems, cloud computing, and connected devices. 

The company earns revenue by licensing its energy-efficient processor technology to manufacturers across the global technology ecosystem.

Halal status summary (as of May 29, 2026)

• Grade: B
• Business activity screening: 97.33% halal
• Interest-bearing securities and assets: Only 2.73%
• Interest-bearing debt: Only 0.02%

2. Marvell Technology Inc. (MRVL)

Overview

Marvell Technology develops semiconductor solutions for data centers, cloud infrastructure, AI applications, networking, and storage systems. Its chips help power high-speed data transfer and computing in enterprise and telecom environments.

Halal status summary (as of May 29, 2026)

• Grade: A-
• Business activity screening: 99.27% halal
• Interest-bearing securities and assets: Only 4.13%
• Interest-bearing debt: Only 7.00%

3. Seagate Technology Holdings PLC (STX)

Overview

Seagate Technology manufactures data storage solutions, including hard drives and enterprise storage systems. The company benefits from growing global demand for cloud computing, AI infrastructure, and large-scale data storage.

Halal status summary (as of May 29, 2026)

• Grade: B+
• Business activity screening: 99.77% halal
• Interest-bearing securities and assets: Only 3.68%
• Interest-bearing debt: Only 12.39%

4. Exxon Mobil Corp. (XOM)

Overview

Exxon Mobil is one of the world’s largest energy companies, involved in oil and natural gas exploration, production, refining, and distribution. The company also invests in low-carbon technologies and energy transition initiatives.

Halal status summary (as of May 29, 2026)

• Grade: A
• Business activity screening: 98.29% halal
• Interest-bearing securities and assets: Only 1.74%
• Interest-bearing debt: Only 9.85%

5. Mastercard Inc. (MA)

Overview

Mastercard operates a global payments network that enables digital transactions between consumers, banks, merchants, and businesses. 

The company generates revenue from transaction processing, payment solutions, and financial technology services.

Halal status summary (as of May 29, 2026)

• Grade: A
• Business activity screening: 99.05% halal
• Interest-bearing securities and assets: Only 1.95%
• Interest-bearing debt: Only 4.22%

6. Sandisk Corp. (SNDK)

Overview

Sandisk develops flash memory and data storage products used in smartphones, computers, gaming devices, and cloud infrastructure. Its products help consumers and businesses store, transfer, and manage digital information efficiently.

Halal status summary (as of May 29, 2026)

• Grade: A-
• Business activity screening: 99.63% halal
• Interest-bearing securities and assets: Only 12.06%
• Interest-bearing debt: 0%

7. Advanced Micro Devices Inc. (AMD)

Overview

AMD designs high-performance processors and graphics chips for gaming, artificial intelligence, personal computers, and data centers. 

The company competes with major semiconductor firms by focusing on computing performance and energy efficiency.

Halal status summary (as of May 29, 2026)

• Grade: B+
• Business activity screening: 98.01% halal
• Interest-bearing securities and assets: Only 4.94%
• Interest-bearing debt: Only 1.29%

8. Vertiv Holdings Co. (VRT)

Overview

Vertiv provides digital infrastructure solutions that support data centers, communication networks, and industrial facilities. Its products include power management, cooling systems, and monitoring technologies critical to AI and cloud computing infrastructure.

Halal status summary (as of May 29, 2026)

• Grade: B+
• Business activity screening: 99.15% halal
• Interest-bearing securities and assets: Only 6.48%
• Interest-bearing debt: Only 7.45%

9. Eli Lilly and Co. (LLY)

Overview

Eli Lilly is a pharmaceutical company that develops treatments for diabetes, obesity, cancer, and neurological diseases. 

The company has gained strong investor attention due to the rapid demand growth for its weight-loss and diabetes drugs.

Halal status summary (as of May 29, 2026)

• Grade: A
• Business activity screening: 99.68% halal
• Interest-bearing securities and assets: Only 0.77%
• Interest-bearing debt: Only 5.93%

10. Taiwan Semiconductor Manufacturing Co. (TSM)

Overview

TSMC is the world’s largest semiconductor foundry, manufacturing advanced chips for leading technology companies globally. Its factories produce processors used in smartphones, AI systems, data centers, and consumer electronics.

Halal status summary (as of May 29, 2026)

• Grade: B
• Business activity screening: 97.39% halal
• Interest-bearing securities and assets: Only 13.36%
• Interest-bearing debt: Only 3.82%

11. Cisco Systems Inc. (CSCO)

Overview

Cisco Systems develops networking equipment, cybersecurity solutions, and enterprise communication technologies. Its products help businesses manage internet connectivity, cloud infrastructure, and secure digital operations.

Halal status summary (as of May 29, 2026)

• Grade: B-
• Business activity screening: 98.55% halal
• Interest-bearing securities and assets: Only 9.60%
• Interest-bearing debt: Only 13.10%

12. ON Semiconductor Corp. (ON)

Overview

ON Semiconductor manufactures chips used in electric vehicles, industrial automation, renewable energy systems, and intelligent sensing technologies. The company focuses heavily on energy-efficient semiconductor solutions.

Halal status summary (as of May 29, 2026)

• Grade: B-
• Business activity screening: 98.07% halal
• Interest-bearing securities and assets: Only 8.80%
• Interest-bearing debt: Only 10.37%

13. Qualcomm Inc. (QCOM)

Overview

Qualcomm develops wireless communication technologies and semiconductor chips used in smartphones, connected devices, and automotive systems. The company plays a major role in advancing 5G connectivity and mobile computing.

Halal status summary (as of May 29, 2026)

• Grade: B
• Business activity screening: 97.66% halal
• Interest-bearing securities and assets: Only 5.82%
• Interest-bearing debt: Only 9.07%

14. Johnson and Johnson (JNJ)

Overview

Johnson & Johnson operates across pharmaceuticals, medical devices, and consumer healthcare products. The company develops treatments and healthcare solutions used by hospitals, healthcare professionals, and consumers globally.

Halal status summary (as of May 29, 2026)

• Grade: B
• Business activity screening: 98.26% halal
• Interest-bearing securities and assets: Only 5.36%
• Interest-bearing debt: Only 13.37%

15. Broadcom Inc. (AVGO)

Overview

Broadcom designs semiconductor and infrastructure software solutions used in cloud computing, networking, broadband, and enterprise technology. The company generates revenue from both hardware products and software acquisitions.

Halal status summary (as of May 29, 2026)

• Grade: A-
• Business activity screening: 99.27% halal
• Interest-bearing securities and assets: Only 1.64%
• Interest-bearing debt: Only 7.66%

16. Apple Inc. (AAPL)

Overview

Apple designs consumer technology products, including the iPhone, Mac, iPad, Apple Watch, and related software services. The company also earns recurring revenue through subscriptions, digital services, and its ecosystem of connected devices.

Halal status summary (as of May 29, 2026)

• Grade: C+
• Business activity screening: 95.92% halal
• Interest-bearing securities and assets: Only 4.47%
• Interest-bearing debt: Only 2.62%

17. Chevron Corp. (CVX)

Overview

Chevron is a multinational energy company involved in oil and gas exploration, refining, transportation, and petrochemical production. The company also invests in renewable fuels, hydrogen, and carbon reduction technologies.

Halal status summary (as of May 29, 2026)

• Grade: B+
• Business activity screening: 99.83% halal
• Interest-bearing securities and assets: Only 2.14%
• Interest-bearing debt: Only 15.38%

18. NXP Semiconductors NV (NXPI)

Overview

NXP Semiconductors develops chips used in automotive systems, industrial automation, mobile devices, and secure identification technologies. The company is particularly known for its role in vehicle connectivity and embedded processing.

Halal status summary (as of May 29, 2026)

• Grade: A-
• Business activity screening: 99.19% halal
• Interest-bearing securities and assets: Only 6.61%
• Interest-bearing debt: Only 20.90%

19. Adobe Inc (ADBE)

Overview

Adobe develops software used for digital design, content creation, marketing, and document management. Its products, including Photoshop and Acrobat, are widely used by creative professionals and businesses worldwide.

Halal status summary (as of May 29, 2026)

• Grade: A
• Business activity screening: 98.95% halal
• Interest-bearing securities and assets: Only 3.50%
• Interest-bearing debt: Only 3.16%

20. Coca-Cola (KO)

Overview

Coca-Cola is a global beverage company that manufactures and distributes soft drinks, juices, water, sports drinks, and other consumer beverages. The company owns one of the most recognized consumer brands in the world.

Halal status summary (as of May 29, 2026)

• Grade: C+
• Business activity screening: 96.97% halal
• Interest-bearing securities and assets: Only 5.19%
• Interest-bearing debt: Only 15.91%

21. NVIDIA Corp. (NVDA)

Overview

NVIDIA designs graphics processing units (GPUs) and AI computing chips used in gaming, artificial intelligence, autonomous vehicles, and data centers. The company has become one of the leading beneficiaries of the global AI boom.

Halal status summary (as of May 29, 2026)

• Grade: A-
• Business activity screening: 97.84% halal
• Interest-bearing securities and assets: Only 1.88%
• Interest-bearing debt: Only 0.32%

22. Moody’s Corp. (MCO)

Overview

Moody’s provides credit ratings, risk analysis, and financial research services to investors, governments, and corporations. Its analytics help market participants assess creditworthiness and financial risk.

Halal status summary (as of May 29, 2026)

• Grade: A-
• Business activity screening: 98.87% halal
• Interest-bearing securities and assets: Only 1.93%
• Interest-bearing debt: Only 8.91%

23. ServiceNow Inc. (NOW)

Overview

ServiceNow develops cloud-based software that helps organizations automate workflows, IT operations, and customer service processes. Its platform improves operational efficiency across large enterprises.

Halal status summary (as of May 29, 2026)

• Grade: B+
• Business activity screening: 97.77% halal
• Interest-bearing securities and assets: Only 4.94%
• Interest-bearing debt: Only 0.93%

24. Home Depot Inc. (HD)

Overview

Home Depot is one of the largest home improvement retailers in the world, selling construction materials, tools, appliances, and home improvement products. The company serves both individual consumers and professional contractors.

Halal status summary (as of May 29, 2026)

• Grade: B+
• Business activity screening: 99.92% halal
• Interest-bearing securities and assets: Only 0.39%
• Interest-bearing debt: Only 15.71%

25. Tesla Inc (TSLA)

Overview

Tesla manufactures electric vehicles, battery systems, and renewable energy products. The company also develops autonomous driving technology and charging infrastructure for the electric vehicle market.

Halal status summary (as of May 29, 2026)

• Grade: B-
• Business activity screening: 96.55% halal
• Interest-bearing securities and assets: Only 4.82%
• Interest-bearing debt: Only 0.96%

26. Micron Technology Inc. (MU)

Overview

Micron Technology produces memory and storage chips used in smartphones, computers, AI systems, and data centers. The company benefits from rising demand for high-performance computing and data-intensive technologies.

Halal status summary (as of May 29, 2026)

• Grade: B+
• Business activity screening: 99.22% halal
• Interest-bearing securities and assets: Only 11.67%
• Interest-bearing debt: Only 7.10%

27. Microchip Technology Inc. (MCHP)

Overview

Microchip Technology develops semiconductors and microcontrollers used in industrial equipment, automotive systems, aerospace, and consumer electronics. Its products help power embedded systems across a wide range of industries.

Halal status summary (as of May 29, 2026)

• Grade: A-
• Business activity screening: 99.71% halal
• Interest-bearing securities and assets: Only 0.62%
• Interest-bearing debt: Only 13.33%

28. Visa Inc. (V)

Overview

Visa operates one of the world’s largest electronic payment networks, facilitating digital transactions between consumers, merchants, and financial institutions. The company benefits from the continued global shift toward cashless payments.

Halal status summary (as of May 29, 2026)

• Grade: B+
• Business activity screening: 97.99% halal
• Interest-bearing securities and assets: Only 3.45%
• Interest-bearing debt: Only 4.10%

3. How to execute halal investing in the UAE

You can buy and sell halal stocks of your choice in the UAE on Sarwa Trade. 

With Sarwa Trade, you can purchase a fraction of a share of your favourite stocks and get your stock investing journey started with just $500. 

We offer free transfers between your local bank accounts and your brokerage account, and competitive commissions on your trades. 

With our 256-bit bank-level security, we protect your data and money.

If you prefer the passive investing route, you can execute halal investing by subscribing to Halal Portfolios on Sarwa Invest. 

With this, our wealth advisors will create a personalized diversified portfolio of halal ETFs and a Sukuk mutual fund that matches your risk tolerance, financial goals, and investment horizon. 

Our Halal portfolios ensure you are abiding by Islamic principles while enjoying the benefits of passive investing: low cost, low risk, transparency, and a focus on long-term growth.  

Are you ready to get your halal investing journey started? Sign up now for Sarwa to invest in halal stocks through the active or passive investing route.

Takeaways

• Halal investing goes beyond avoiding haram industries — investors must also assess debt levels, cash holdings, and interest-based income.
• Halal stock screeners simplify Shariah-compliant investing by automatically applying Islamic finance criteria to stocks and ETFs.
• Many globally recognized companies, including tech and healthcare giants, can qualify as halal stocks under Shariah screening standards.
• UAE investors can access halal products through active stock investing or diversified Shariah-compliant portfolios on Sarwa.