Methodology

How Purindex screens a company.

Purindex applies AAOIFI Shariah Standard No. 21 as its primary method and shows results under S&P, MSCI and Dow Jones Islamic standards alongside it. Every result links back to the figures and filings it came from.

The three tests

• Business activity. Revenue from interest, alcohol, gambling, tobacco, pork, adult content or weapons must stay below 5% of total revenue. A company whose core business is not permissible fails regardless of its ratios.
• Leverage. Interest-bearing loans and bonds must stay below 30% of market capitalisation. Sukuk are not counted.
• Liquidity. Cash and securities in interest-bearing accounts must stay below 30% of market capitalisation.

Statuses

• Compliant means the company passes all three tests.
• Doubtful means at least one ratio sits within 10% of its limit, or data is incomplete.
• Not compliant means at least one test fails.

Data and review cycle

Ratios come from annual reports, interim statements and exchange filings. Each company is re-screened after new statements are published, and the review date appears on its page.

Purification

When a compliant company still earns a small share of impure income, holders donate the same share of their dividends. Each company page calculates the amount.

Independence

Companies cannot pay for a listing or a result. Issuers may send audited documents for review, and any correction is shown on the company page.

Not investment advice

Purindex publishes information to help people understand what they own. It does not recommend buying, selling or holding any security. For a personal ruling, consult a qualified scholar.