When you invest your money, you want to know what your money is actually supporting.
For people looking to invest in line with Islamic principles, Shariah screening helps answer that question. It is the process used to assess whether an investment meets the requirements of Shariah before it is included in a Shariah-compliant investment portfolio.
But what exactly is being checked?
What is Shariah screening?
Think of Shariah screening as a filter.
Before an investment is considered, it goes through a set of checks to determine whether the underlying business and its financial position meet the required Shariah criteria.
The screening generally looks at two things: What the company does and how it makes its money.
What does the company do?
First, the business itself is examined.
Companies involved in activities that are not permissible under Shariah such as conventional interest-based financial services, gambling, alcohol, or other prohibited activities, would generally not qualify.
The principle is simple: your investment should not directly support a business that Shariah prohibits.
How does the company manage its finances?
A company may have a permissible business but still have some exposure to conventional financial practices.
For example, it may have interest-bearing debt, earn some interest income, or have other financial ratios that need to be assessed.
This is where financial screening comes in.
Shariah standards set specific thresholds for these areas. The company is assessed against those thresholds to determine whether it remains eligible for Shariah-compliant investment.
Is it possible for a company to have some non-compliant income?
Yes. Modern businesses operate in complex financial markets, so a company with an otherwise permissible business may have a small amount of income from non-permissible sources.
This does not automatically mean the entire investment is excluded.
Instead, Shariah screening applies established limits to determine whether the investment remains eligible. Where applicable, the portion of income that is not permissible is dealt with through purification, in line with the relevant Shariah guidelines.
This is why Shariah compliance is more than simply looking at a company’s name or industry. It involves looking beneath the surface.
Screening is an ongoing process
Shariah screening is not necessarily a one-time exercise.
A company’s business activities and financial position can change. Its debt may increase, its sources of income may change, or its financial ratios may move outside the permitted thresholds.
For this reason, Shariah-compliant investment managers and financial institutions monitor investments regularly and take appropriate action when an investment no longer meets the required criteria. For Standard Investment Bank Islamic Division SIB Najah, the Shariah Advisory Board is key to ensuring that the screening is done in line with the Shariah Principles.
For instance, in SIB Najah’s most recent H2 2026 Shariah-Compliant Screening Update, the SIB Najah Shariah Advisory Board reclassified TotalEnergies Marketing, Crown Paints, Kapchorua Tea, BOC Kenya as non-Shariah compliant. The reclassification is to maintain strict alignment with Shariah governance standards. You can download the full report here.
Why does asset screening matter?
For an ethical investor, the key question is often simple:
“Where is my money going?”
Asset screening provides a structured way of answering that question.
It helps ensure that investments are assessed not only for their financial characteristics, but also against the Shariah principles governing permissible business activities and financial practices.
For a Shariah-compliant investment bank such as SIB Najah, this means having a clear process for screening, monitoring and reviewing investments, with appropriate Shariah oversight.
In simple terms, Shariah screening is the filter between your money and the investment it goes into.
It helps investors make informed choices about where their money is invested while ensuring that the investment process remains aligned with Shariah principles.
