Islamic finance operates as an alternative system meeting the investment requirements of individuals adhering to Islamic beliefs. While conventional finance prioritizes stock exchanges facilitating small-scale investments, challenges arise for Muslims investing their savings in stocks due to potential conflicts between companies' activities and revenues and religious principles. This situation prompts Islamic scholars to deliberate on the permissibility of purchasing specific company stocks. Various scholars and Shariah boards have established precise criteria for determining the permissibility of buying a company's stocks, leading to the development of indexes aimed at identifying compliant companies. Shariah-compliant stocks or companies adhere to the principles of Shariah law, governing various life aspects, including financial and economic activities. This study investigates Shariah screening methods, exploring their rationale, foundations, and potential religious influences, particularly focusing on six prominent Islamic indices. The study investigates Shariah's justifications and motives behind these methods, discussing their evaluation through different standards. Despite scholars' varying opinions and evolving methodologies, the primary objective remains consistent: to facilitate halal income for Muslim investors while maintaining Islamic ethical principles in financial practices.
AAOIFI. (1997). Governance Standard No. (1) Shari’a Supervisory Board: Appointment, Composition and
Report (Governance Standard No. (1)).
Adam, N. L., & Bakar, N. A. (2014). Shariah screening process in Malaysia. Procedia-Social and Behavioral Sciences, 121, 113-123. https://www.sciencedirect.com/science/article/pii/S1877042814011306
Adil, M. A. M., Ho, C. S., Isa, M. M., Yaakub, E., & Khalid, M. M. (2013). Shariah-compliant screening practices in Malaysia. Islam and Civilisational Renewal, 274(1706), 1-19. https://platform.almanhal.com/Files/Articles/59805
Akartepe, B. B. (2022). Metodolojik Farklılıkların Pratik Yansımaları: Hisse Senedi Şer ‘i İzleme Kriterleri
Üzerine Bir İnceleme. İslam Ekonomisi ve Finansı Dergisi (İEFD), 8(1), 73-98. https://dergipark.org.tr/en/pub/jief/issue/69357/1018471
Akartepe, B. B. (2022). Hisse Senedi Şer ‘i İzleme Faaliyetlerinde Kullanılan Eşik Değerlere Dair Eleştirel Bir
İnceleme. International Journal of Islamic Economics and Finance Studies, 8(2), 123-151. https://dergipark.org.tr/en/pub/ijisef/issue/71516/1129328
Ashraf, D., & Khawaja, M. (2016). Does the Shariah screening process matter? Evidence from Shariah
Compliant portfolios. Journal of Economic Behavior and Organization, 132, 77–92.
https://doi.org/10.1016/j.jebo.2016.10.003
Ayedh, A. M. A., Shaharuddin, A., & Kamaruddin, M. I. H. (2019). Shariah screening methodology: does it ‘really’Shariah compliance? Journal of Islamic Economics and Business, 12(2), 144-172. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3502622
Bakar, M. (2010). Jurisprudence of screening in contemporary Islamic finance architecture. Dow Jones Islamic Market Indexes Newsletter.
Bengtsson, E. (2008). A history of Scandinavian socially responsible investing. Journal of Business Ethics, 82(4), 969-983. https://link.springer.com/article/10.1007/s10551-007-9606-y
Bursa, M. (n.d). The Screening of Stocks for Shariah Compliance Components and Its Application in Major Global Equity Markets. https://bursaacademy.bursamarketplace.com/en/article/islamic-equities/the-screening-of-stocks-for-shariah-compliance-components-its-application-in-major-global-equity-markets
Derigs, U., & Marzban, S. (2008). Review and analysis of current Shariah‐compliant equity screening practices. International Journal of Islamic and Middle Eastern Finance and Management, 1(4), 285-303. https://www.emerald.com/insight/content/doi/10.1108/17538390810919600/full/html
DJIM. (2023). Dow Jones Islamic Market World Index. S&P Global. https://www.spglobal.com/spdji/en/indices/equity/dow-jones-islamic-market-world-index/#overview
FTSE. (2023). FTSE Global Equity Shariah Index Series. https://www.lseg.com/en/ftse-russell/indices/global-shariah#t-methodology
FTSE, S. I. (2015). FTSE Shariah Indexes. https://research.ftserussell.com/products/downloads/FTSE_Shariah_Indices.pdf
Gamaleldin, F. (2015). Shariah-compliant stocks screening and purification. Research gate, 1-44. https://www.researchgate.net/profile/Farid-Gamaleldin/publication/280561876_Shariah-Compliant_Stocks_Screening_and_Purification/links/55b9c3c308aec0e5f43c43e7/Shariah-Compliant-Stocks-Screening-and-Purification.pdf
Habib, F., & Ahmad, A. U. F. (2017). Revisiting the AAOIFI Shariah Standards’ Stock Screening Criteria.
International Journal of Business and Society, 18(Special Issue), 151–166.
Hambali, S., Jamal, J., Mohd Ali, H., & Abdul Manap, N. (2010). Shari’ah compliant issues in the Islamic capital market and shariah screening in Malaysia. International Research Symposium in Service Management, August 2010, 24–27. In.
Ho, C. S. F. (2015). International comparison of Shari’ah compliance screening standards. International
Journal of Islamic and Middle Eastern Finance and Management, 8(2), 222–245.
https://doi.org/10.1108/IMEFM-07-2014-0065
Htay, S. N. N., Abedeen, Z., & Salman, S. A. (2013). Towards standardization of Shari’ah screening norms and practices. International Journal of Humanities and Social Science Invention, 2(11), 23-30. https://www.researchgate.net/profile/Syed-Salman-4/publication/318654479_Towards_Standardization_of_Shari'ah_Screening_Norms_and_Practices/links/5975da75a6fdcc834897d394/Towards-Standardization-of-Shariah-Screening-Norms-and-Practices.pdf
Ibrahim, Y. (2012). Shariah Stock Screening Methodology. Islamic Banking.Com. http://islamicbanking2u.blogspot.com/2012/06/shariah-stock-screening-methodology.html
Kasi, U., & Muhammad, J. (2016). Strict and uniform Shariah screening methodologies in selected Asian countries in comparison with the United States. Asian Journal of Finance & Accounting, 8(1), 38-76.
Khatkhatay, M. H., & Nisar, S. (2007). Shariah-compliant equity investments: An assessment of current screening norms. Islamic Economic Studies, 15(1). https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3159937
Khouildi, M. Y., Bengana, M., Rakibi, M., Riad, M. R., & Aldirchawi, S. (2017). Shariah Screening methodologies: SAC-SC vs DJIM Comparative study and impact assessment on their performance. Global Review of Islamic Economics and Business, 5(2), 068-082. https://ejournal.uin-suka.ac.id/febi/grieb/article/view/052-01
Laldin, M. A. (2008). The role of Shari’ah advisors in the development of Islamic securities. MA Laldin, Fundamentals and Practices in Islamic Finance. Kuala Lumpur: ISRA, 13-33. https://www.iefpedia.com/english/wp-content/uploads/2009/10/The-Role-of-Shari%C3%A2%E2%82%AC%E2%84%A2ah-Advisors-in-the-Development-of-Islamic-Securities1.pdf
Md. Hashim, A., Habib, F., Isaacs, Z., & Gadhoum, M. A. (2017). ISRA-Bloomberg Sharīʿah stock screening and income cleansing methodologies: a conceptual paper. ISRA International Journal of Islamic Finance, 9(1), 27-42. https://www.emerald.com/insight/content/doi/10.1108/IJIF-07-2017-004/full/html
Nadwi, M. A. (1999). Islamic Legal Interpretation. In: JSTOR.
Najib, N., Hamid, I., Nasarudin, S., & Saiti, B. (2014). The comparison of Shariah screening methodology for stocks between Malaysia Security Commission criteria and Dow Jones method: A critical assessment. Research gate, 1-12. https://www.researchgate.net/profile/Burhan-Uluyol/publication/
Omar, A., Abduh, M., & Sukmana, R. (2013). Fundamentals of Islamic money and capital markets. John Wiley & Sons. https://books.google.com.tr/books?hl=en&lr=&id=91YwyEEvJhkC&oi=fnd&pg=PP10&dq=Omar,+M.,+Abduh,+M.+%26+Sukmana,+R.+(2013)+Fundamentals+of+Islamic+Money+and++Capital+Markets.+Singapore:+John+Wiley+%26+Sons.&ots=bQsFRBr1f2&sig=NrsHKXR64_QtpEwcLuE1cpEMy7E&redir_esc=y#v=onepage&q&f=false
Omar Farooq, M., & Hasib Reza, M. (2014). Dow Jones Islamic Market US Index: Applying technical analysis from a comparative perspective. International Journal of Islamic and Middle Eastern Finance and Management, 7(4), 395-420. https://www.emerald.com/insight/content/doi/10.1108/IMEFM-12-2013-0134/full/html
Rizaldy, M. R., & Ahmed, H. (2019). Islamic legal methodologies and Shariah screening standards:
Application in the Indonesian stock market. Thunderbird International Business Review, 61(5),
793–805. https://doi.org/10.1002/tie.22042
S&P. (2023). S&P Shariah Indices Methodology. https://www.spglobal.com/spdji/en/documents/methodologies/methodology-sp-shariah-indices.pdf
SAC. (2013). SHARIAH-COMPLIANT SECURITIES SCREENING METHODOLOGY. S. C. Malaysia. https://www.sc.com.my/development/icm/shariah-compliant-securities/shariah-compliant-securities-screening-methodology
SAC. (2018). SHARIAH-COMPLIANT SECURITIES SCREENING METHODOLOGY. Securities Commision Malaysia. https://www.sc.com.my/development/icm/shariah-compliant-securities/shariah-compliant-securities-screening-methodology
Saraç, M., Uzun, S., & Aksoy, F. (2020). Katılım Endeksleri Performans Değerlendirmesi. In Menkul Kıymetler Borsası ve İslamî Açıdan Değerlendirilmesi (pp. 299–306). DİB Yayınları.
Shamsuddin, A. (2014). Are Dow Jones Islamic equity indices exposed to interest rate risk? Economic Modelling, 39, 273-281. https://www.sciencedirect.com/science/article/abs/pii/S0264999314000935
Shanmugam, B., & Zahari, Z. R. (2009). A primer on Islamic finance. In: Research Foundation of CFA Institute Charlottesville, VA.
Ülev, S. (2016). Analysis of performance of Borsa İstanbul participation index and its relationship between market interest rates [Master’s thesis]. Sakarya University.
Yildirim, R., & Ilhan, B. (2018). Shari'ah Screening Methodology: New Shari'ah Compliant Approach. Journal of Islamic Economics, Banking and Finance, 113(6219), 1-24. https://platform.almanhal.com/Files/Articles/128768
Zainudin, N. B., Miskam, S. B., & Sulaiman, M. B. (2014). Revised Shariah screening methodology for Shariah-compliant securities: New standard to meet global expectation. Conference on Management and Muamalah, International Islamic University College Selangor,
Zandi, G., Razak, D. A., & Hussin, N. H. (2014). Stock market screening: An analogical study on conventional and shariah-compliant stock markets. Asian Social Science, 10(22), 270. https://www.researchgate.net/profile/Gholamreza-Zandi-2/publication/287417638_Stock_Market_Screening_An_Analogical_Study_on_Conventional_and_Shariah-Compliant_Stock_Markets/links/5e93bf6f299bf13079945ec5/Stock-Market-Screening-An-Analogical-Study-on-Conventional-and-Shariah-Compliant-Stock-Markets.pdf
İslami finans, İslami inançlara sahip bireylerin yatırım ihtiyaçlarını karşılayan alternatif bir sistem olarak faaliyet göstermektedir. Geleneksel finans, küçük ölçekli yatırımları kolaylaştıran borsalara öncelik verirken, şirketlerin faaliyetleri ve gelirleri ile dini ilkeler arasındaki olası çatışmalar nedeniyle Müslümanların tasarruflarını hisse senedine yatırmasında zorluklar yaşanıyor. Bu durum İslam alimlerini belirli şirket hisselerinin satın alınmasının caizliği konusunda düşünmeye sevk etmektedir. Çeşitli akademisyenler ve Şer'i kurullar, bir şirketin hisselerini satın almanın caiz olup olmadığını belirlemek için kesin kriterler belirlemiş ve bu da uyumlu şirketleri belirlemeyi amaçlayan endekslerin geliştirilmesine yol açmıştır. Şer'i uyumlu hisse senetleri veya şirketler, mali ve ekonomik faaliyetler de dahil olmak üzere hayatın çeşitli yönlerini düzenleyen Şeriat hukukunun ilkelerine uyarlar. Bu çalışma, özellikle öne çıkan alti İslami endekse odaklanarak, şeriat tarama yöntemlerini, gerekçelerini, temellerini ve potansiyel dini etkilerini araştırıyor. Çalışmada bu yöntemlerin ardındaki şeriat gerekçeleri ve saikler araştırılıyor ve bunların farklı standartlar üzerinden değerlendirilmesi tartışılıyor. Akademisyenlerin farklı görüşlerine ve gelişen metodolojilerine rağmen temel amaç tutarlı kalıyor: Finansal uygulamalarda İslami etik ilkeleri korurken Müslüman yatırımcılar için helal geliri kolaylaştırmak.
AAOIFI. (1997). Governance Standard No. (1) Shari’a Supervisory Board: Appointment, Composition and
Report (Governance Standard No. (1)).
Adam, N. L., & Bakar, N. A. (2014). Shariah screening process in Malaysia. Procedia-Social and Behavioral Sciences, 121, 113-123. https://www.sciencedirect.com/science/article/pii/S1877042814011306
Adil, M. A. M., Ho, C. S., Isa, M. M., Yaakub, E., & Khalid, M. M. (2013). Shariah-compliant screening practices in Malaysia. Islam and Civilisational Renewal, 274(1706), 1-19. https://platform.almanhal.com/Files/Articles/59805
Akartepe, B. B. (2022). Metodolojik Farklılıkların Pratik Yansımaları: Hisse Senedi Şer ‘i İzleme Kriterleri
Üzerine Bir İnceleme. İslam Ekonomisi ve Finansı Dergisi (İEFD), 8(1), 73-98. https://dergipark.org.tr/en/pub/jief/issue/69357/1018471
Akartepe, B. B. (2022). Hisse Senedi Şer ‘i İzleme Faaliyetlerinde Kullanılan Eşik Değerlere Dair Eleştirel Bir
İnceleme. International Journal of Islamic Economics and Finance Studies, 8(2), 123-151. https://dergipark.org.tr/en/pub/ijisef/issue/71516/1129328
Ashraf, D., & Khawaja, M. (2016). Does the Shariah screening process matter? Evidence from Shariah
Compliant portfolios. Journal of Economic Behavior and Organization, 132, 77–92.
https://doi.org/10.1016/j.jebo.2016.10.003
Ayedh, A. M. A., Shaharuddin, A., & Kamaruddin, M. I. H. (2019). Shariah screening methodology: does it ‘really’Shariah compliance? Journal of Islamic Economics and Business, 12(2), 144-172. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3502622
Bakar, M. (2010). Jurisprudence of screening in contemporary Islamic finance architecture. Dow Jones Islamic Market Indexes Newsletter.
Bengtsson, E. (2008). A history of Scandinavian socially responsible investing. Journal of Business Ethics, 82(4), 969-983. https://link.springer.com/article/10.1007/s10551-007-9606-y
Bursa, M. (n.d). The Screening of Stocks for Shariah Compliance Components and Its Application in Major Global Equity Markets. https://bursaacademy.bursamarketplace.com/en/article/islamic-equities/the-screening-of-stocks-for-shariah-compliance-components-its-application-in-major-global-equity-markets
Derigs, U., & Marzban, S. (2008). Review and analysis of current Shariah‐compliant equity screening practices. International Journal of Islamic and Middle Eastern Finance and Management, 1(4), 285-303. https://www.emerald.com/insight/content/doi/10.1108/17538390810919600/full/html
DJIM. (2023). Dow Jones Islamic Market World Index. S&P Global. https://www.spglobal.com/spdji/en/indices/equity/dow-jones-islamic-market-world-index/#overview
FTSE. (2023). FTSE Global Equity Shariah Index Series. https://www.lseg.com/en/ftse-russell/indices/global-shariah#t-methodology
FTSE, S. I. (2015). FTSE Shariah Indexes. https://research.ftserussell.com/products/downloads/FTSE_Shariah_Indices.pdf
Gamaleldin, F. (2015). Shariah-compliant stocks screening and purification. Research gate, 1-44. https://www.researchgate.net/profile/Farid-Gamaleldin/publication/280561876_Shariah-Compliant_Stocks_Screening_and_Purification/links/55b9c3c308aec0e5f43c43e7/Shariah-Compliant-Stocks-Screening-and-Purification.pdf
Habib, F., & Ahmad, A. U. F. (2017). Revisiting the AAOIFI Shariah Standards’ Stock Screening Criteria.
International Journal of Business and Society, 18(Special Issue), 151–166.
Hambali, S., Jamal, J., Mohd Ali, H., & Abdul Manap, N. (2010). Shari’ah compliant issues in the Islamic capital market and shariah screening in Malaysia. International Research Symposium in Service Management, August 2010, 24–27. In.
Ho, C. S. F. (2015). International comparison of Shari’ah compliance screening standards. International
Journal of Islamic and Middle Eastern Finance and Management, 8(2), 222–245.
https://doi.org/10.1108/IMEFM-07-2014-0065
Htay, S. N. N., Abedeen, Z., & Salman, S. A. (2013). Towards standardization of Shari’ah screening norms and practices. International Journal of Humanities and Social Science Invention, 2(11), 23-30. https://www.researchgate.net/profile/Syed-Salman-4/publication/318654479_Towards_Standardization_of_Shari'ah_Screening_Norms_and_Practices/links/5975da75a6fdcc834897d394/Towards-Standardization-of-Shariah-Screening-Norms-and-Practices.pdf
Ibrahim, Y. (2012). Shariah Stock Screening Methodology. Islamic Banking.Com. http://islamicbanking2u.blogspot.com/2012/06/shariah-stock-screening-methodology.html
Kasi, U., & Muhammad, J. (2016). Strict and uniform Shariah screening methodologies in selected Asian countries in comparison with the United States. Asian Journal of Finance & Accounting, 8(1), 38-76.
Khatkhatay, M. H., & Nisar, S. (2007). Shariah-compliant equity investments: An assessment of current screening norms. Islamic Economic Studies, 15(1). https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3159937
Khouildi, M. Y., Bengana, M., Rakibi, M., Riad, M. R., & Aldirchawi, S. (2017). Shariah Screening methodologies: SAC-SC vs DJIM Comparative study and impact assessment on their performance. Global Review of Islamic Economics and Business, 5(2), 068-082. https://ejournal.uin-suka.ac.id/febi/grieb/article/view/052-01
Laldin, M. A. (2008). The role of Shari’ah advisors in the development of Islamic securities. MA Laldin, Fundamentals and Practices in Islamic Finance. Kuala Lumpur: ISRA, 13-33. https://www.iefpedia.com/english/wp-content/uploads/2009/10/The-Role-of-Shari%C3%A2%E2%82%AC%E2%84%A2ah-Advisors-in-the-Development-of-Islamic-Securities1.pdf
Md. Hashim, A., Habib, F., Isaacs, Z., & Gadhoum, M. A. (2017). ISRA-Bloomberg Sharīʿah stock screening and income cleansing methodologies: a conceptual paper. ISRA International Journal of Islamic Finance, 9(1), 27-42. https://www.emerald.com/insight/content/doi/10.1108/IJIF-07-2017-004/full/html
Nadwi, M. A. (1999). Islamic Legal Interpretation. In: JSTOR.
Najib, N., Hamid, I., Nasarudin, S., & Saiti, B. (2014). The comparison of Shariah screening methodology for stocks between Malaysia Security Commission criteria and Dow Jones method: A critical assessment. Research gate, 1-12. https://www.researchgate.net/profile/Burhan-Uluyol/publication/
Omar, A., Abduh, M., & Sukmana, R. (2013). Fundamentals of Islamic money and capital markets. John Wiley & Sons. https://books.google.com.tr/books?hl=en&lr=&id=91YwyEEvJhkC&oi=fnd&pg=PP10&dq=Omar,+M.,+Abduh,+M.+%26+Sukmana,+R.+(2013)+Fundamentals+of+Islamic+Money+and++Capital+Markets.+Singapore:+John+Wiley+%26+Sons.&ots=bQsFRBr1f2&sig=NrsHKXR64_QtpEwcLuE1cpEMy7E&redir_esc=y#v=onepage&q&f=false
Omar Farooq, M., & Hasib Reza, M. (2014). Dow Jones Islamic Market US Index: Applying technical analysis from a comparative perspective. International Journal of Islamic and Middle Eastern Finance and Management, 7(4), 395-420. https://www.emerald.com/insight/content/doi/10.1108/IMEFM-12-2013-0134/full/html
Rizaldy, M. R., & Ahmed, H. (2019). Islamic legal methodologies and Shariah screening standards:
Application in the Indonesian stock market. Thunderbird International Business Review, 61(5),
793–805. https://doi.org/10.1002/tie.22042
S&P. (2023). S&P Shariah Indices Methodology. https://www.spglobal.com/spdji/en/documents/methodologies/methodology-sp-shariah-indices.pdf
SAC. (2013). SHARIAH-COMPLIANT SECURITIES SCREENING METHODOLOGY. S. C. Malaysia. https://www.sc.com.my/development/icm/shariah-compliant-securities/shariah-compliant-securities-screening-methodology
SAC. (2018). SHARIAH-COMPLIANT SECURITIES SCREENING METHODOLOGY. Securities Commision Malaysia. https://www.sc.com.my/development/icm/shariah-compliant-securities/shariah-compliant-securities-screening-methodology
Saraç, M., Uzun, S., & Aksoy, F. (2020). Katılım Endeksleri Performans Değerlendirmesi. In Menkul Kıymetler Borsası ve İslamî Açıdan Değerlendirilmesi (pp. 299–306). DİB Yayınları.
Shamsuddin, A. (2014). Are Dow Jones Islamic equity indices exposed to interest rate risk? Economic Modelling, 39, 273-281. https://www.sciencedirect.com/science/article/abs/pii/S0264999314000935
Shanmugam, B., & Zahari, Z. R. (2009). A primer on Islamic finance. In: Research Foundation of CFA Institute Charlottesville, VA.
Ülev, S. (2016). Analysis of performance of Borsa İstanbul participation index and its relationship between market interest rates [Master’s thesis]. Sakarya University.
Yildirim, R., & Ilhan, B. (2018). Shari'ah Screening Methodology: New Shari'ah Compliant Approach. Journal of Islamic Economics, Banking and Finance, 113(6219), 1-24. https://platform.almanhal.com/Files/Articles/128768
Zainudin, N. B., Miskam, S. B., & Sulaiman, M. B. (2014). Revised Shariah screening methodology for Shariah-compliant securities: New standard to meet global expectation. Conference on Management and Muamalah, International Islamic University College Selangor,
Zandi, G., Razak, D. A., & Hussin, N. H. (2014). Stock market screening: An analogical study on conventional and shariah-compliant stock markets. Asian Social Science, 10(22), 270. https://www.researchgate.net/profile/Gholamreza-Zandi-2/publication/287417638_Stock_Market_Screening_An_Analogical_Study_on_Conventional_and_Shariah-Compliant_Stock_Markets/links/5e93bf6f299bf13079945ec5/Stock-Market-Screening-An-Analogical-Study-on-Conventional-and-Shariah-Compliant-Stock-Markets.pdf
Ömer Faruk Tekdoğan
SOCIAL SCIENCES UNIVERSITY OF ANKARA, INSTITUTE OF ISLAM RESEARCH, DEPARTMENT OF ISLAMIC ECONOMICS AND FINANCE (INTERDISCIPLINARY)0000-0002-4397-1718Türkiye
Adeyemi, I. B., & Tekdoğan, Ö. F. (2024). Understanding the Screening Criteria for Shariah-Compliant Stocks. Adam Academy Journal of Social Sciences, 14(2), 371-395. https://doi.org/10.31679/adamakademi.1415744
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