In today's globalized world, investors are increasingly seeking out sharia-compliant investments. Sharia-compliant stocks, also known as Islamic-compliant stocks, adhere to Islamic principles and are free from certain sectors and practices that are considered haram (forbidden) in Islam. If you're looking to invest in sharia-compliant stocks in the United States, this guide will provide you with a comprehensive list of companies that meet these criteria.
What is Sharia Compliance?
Sharia compliance refers to adhering to Islamic principles in business and finance. These principles are derived from the Quran and Hadith, and they guide Muslims in their personal and professional lives. In the context of investing, sharia-compliant stocks are those that meet certain criteria, such as:
- No involvement in interest (riba)
- No investment in sectors considered haram, such as alcohol, pork, gambling, and tobacco
- Ethical business practices
Sharia Compliant US Stocks List
Here is a list of sharia-compliant US stocks that you can consider for your investment portfolio:
Procter & Gamble (PG)
- Industry: Consumer Goods
- Why It's Sharia Compliant: P&G's products are not related to haram sectors, and the company operates ethically.
Coca-Cola (KO)
- Industry: Consumer Goods
- Why It's Sharia Compliant: Coca-Cola's products are not related to haram sectors, and the company adheres to ethical business practices.
Exxon Mobil (XOM)
- Industry: Energy
- Why It's Sharia Compliant: Exxon Mobil's operations are focused on oil and gas, which are permissible in Islam, and the company adheres to ethical practices.
Johnson & Johnson (JNJ)
- Industry: Healthcare
- Why It's Sharia Compliant: Johnson & Johnson's products are not related to haram sectors, and the company operates ethically.
Microsoft (MSFT)
- Industry: Technology
- Why It's Sharia Compliant: Microsoft's products are not related to haram sectors, and the company adheres to ethical business practices.
Apple (AAPL)
- Industry: Technology
- Why It's Sharia Compliant: Apple's products are not related to haram sectors, and the company operates ethically.
Visa (V)
- Industry: Financial Services
- Why It's Sharia Compliant: Visa's services are not related to haram sectors, and the company adheres to ethical practices.
Mastercard (MA)
- Industry: Financial Services
- Why It's Sharia Compliant: Mastercard's services are not related to haram sectors, and the company adheres to ethical practices.
IBM (IBM)
- Industry: Technology
- Why It's Sharia Compliant: IBM's products and services are not related to haram sectors, and the company adheres to ethical business practices.
Intel (INTC)
- Industry: Technology
- Why It's Sharia Compliant: Intel's products are not related to haram sectors, and the company operates ethically.
Case Study: Procter & Gamble
Let's take a closer look at Procter & Gamble (PG) as an example of a sharia-compliant stock. P&G is a leading consumer goods company that produces a wide range of products, including household cleaning agents, personal care products, and baby care products. The company's products are not related to haram sectors, and it adheres to ethical business practices.
In 2018, P&G launched a sharia-compliant fund in partnership with a major Islamic investment bank. This fund invests in P&G's shares, providing a sharia-compliant investment option for Muslim investors. This move demonstrates P&G's commitment to meeting the needs of Islamic investors and expanding its global reach.
In conclusion, investing in sharia-compliant stocks can be a wise decision for Muslim investors who want to align their investments with their religious beliefs. The list provided in this article offers a starting point for those looking to build a sharia-compliant investment portfolio in the United States.