les cahiers du mecas
Volume 10, Numéro 1, Pages 171-176
2014-12-31

Screening Criteria & Methodology For For Islamic Equity Investment

Authors : Khaldi Khadidja . Benhabib Abderrezzak .

Abstract

known as ‘ethical investing’, ‘socially responsible investing’, ‘faith investing’and ‘green investing’. Each of these investment funds has much of value to contribute and each has something in common with the teaching of Islam. From Shari’ah –compliant investment point of view, the key element to equity funds is the screening criteria which had been used to determine the status of the companies in which investment is to be made by the funds .Presently there are various screening methodology being developed and approved by the renowned Islamic scholars that are being used by financial institutions around the world. The focus of this paper is on how to screen equity investments in stock markets throughout the world to identify companies that are potentially acceptable to Islamic investors in terms of their degree of compliance with the shariah law

Keywords

Equity Funds,management,Islamic equity investments