r/HalalInvestor

I am a long term passive investor in sharia compliant businesses. Looking for like minded people to come together as an advisory board and eventually a syndicate where we can pool our expertise and maybe capital to take major stakes in boring but profitable sharia compliant businesses in UAE. I am a 20+ year veteran in FTSE 100 companies leading moderate businesses (P&L of $200m +) across O&G, Electricity , Aviation. Looking for folks who specialize in Legal, Investment Management, Operations... once I have a solid group we can discuss opportunities and frameworks

I want to avoid riba, how do you buy a buisiness, house or car?

I have to buy a car for work, I don't have a lot of money to put down. Finance is looking like the way. I have looked at the halal finance mothod (you pay the interest with the car payment all together) but got advice that It's still haram. How do I purchase a car? A house In future? And a Buisiness soon?

I have about 740 credit score, work full time $2500 monthly with no rent to pay.

Islam has thrived both scientifically and financially for centuries and has set the roadmap for the modern world. But what about nowadays muslims ? Many places we see muslim brothers doing petty works which doesn’t add any value to them , their family or the community. With the world of Riba everywhere we see how people are firing themselves in their 30s and 40s from their jobs with such a net-worth literally enjoying regular incomes through interests, leading a free life. We see a new upper class emerging that doesn’t need to work at all rest of their lives. So who is really going to do the actual work ? Who has to move the economic engines ? Will it be pushed on top of us muslims who never involve ourselves in riba based businesses and we put in as a new working class ? What has led us to this situation ? “Financial Illiteracy & Selfishness”. We dont want other brothers to know how we became successful and not even give them a clue of it. If a brother is rising we never wanted them to rise up further and awaiting their fall. Sorry to say there are higher and lower class even among muslims. Where the hell are we going as a community ? Unless until we are untied in how we help each other and how we rise each other up , in no matter of time the community will be pushed as a new working class and be deprived of even the low level rights we enjoy. Muslims should develop high value products , own high value companies, intellectually united, selfless attitude, developing cross border partnership , muslim startups and above all Trusting Allah and change the system which we are now put upon. This system is just a mirage that we cannot come out but nothing is impossible when Allah is with us.

Are there anyone who started to build their portfolio as a halal investor? What do you typically invest?

I’m avoiding big names such as xeqt, vfv due to obvious reasons (banks). I typically invest in Canadian version of qqq called znq, gold etf and individual stocks.

Any insights on how did you build your portfolio in a halal way would help me build mine.

Hey everyone,

I’m currently running a licensed, fully operational auto repair shop here in the UAE. Operations are active, cars are coming through the door, and we’re breaking even/generating steady day-to-day revenue.

While general repair pays the bills, the real margin in the UAE automotive sector is in parts, performance, specialized retail, and exclusive distribution.

We already have the physical infrastructure (shop space, storage capacity, and trade license) to scale, but I need additional capital and/or an investor/partner to execute a massive pivot into high-margin verticals.

Where we are now:

•Fully licensed physical location with working bays and storage space.
•Active repair operations and ongoing client flow.
•In-house capabilities including diagnostic work, mechanical builds, and basic ECU tuning.

The Expansion Plan (High Margin Focus):

Retail & Distribution (Physical and Online Store) of OEM, OEM+, and Performance Parts: Moving beyond general repair into high-turnover inventory. By using our contacts and relations with existing local and overseas supplier networks, we plan to stock and distribute hard-to-find OEM replacements, upgraded OEM+ components, and dedicated aftermarket performance parts. The goal is to capture both retail sales (direct to consumers/enthusiasts) and B2B wholesale supply to other independent workshops across the emirates—utilizing our existing physical location for central storage and fast order fulfillment.

Performance Packages: Transitioning from basic repairs to complete "Buy & Install" packages for performance parts, tuning, and race prep.

Specialized Liquids & Fuels: Securing supply lines for high-margin race fuels (huge demand in the local motorsport/race scene) and an exclusive distribution opportunity for an established overseas engine oil brand that currently has zero presence in this region.

Direct contact and connection with suppliers*:* Existing contacts with both local and overseas suppliers ready to go once inventory capital is secured.

What I’m Looking For: I am looking for an investor or a partner who can bring growth capital to help fund:

1. Initial inventory stock for parts, race fuels, and liquid distribution.
2. Building out a small, specialized team to handle sales, marketing and technical execution.
3. Marketing push targeting the local automotive and performance enthusiast community.

If you are a serious investor, an active automotive enthusiast with capital, or someone with strong commercial experience in the UAE auto scene who wants to partner up, send me a DM.

I’m happy to meet in person or at the shop, and discuss numbers/the detailed business plan.

Building a Shariah algo trading platform for individual Muslims. If you currently trade or invest, I'd love to hear about your frustrations with existing tools. DM me or reply here!

Start off w a small amt of years depending on how it turns out, but is 50% SPWO and 50% SPUS good?

i want to do america + world so its diverse, but i also don’t know how well it complements the years i wanna do

id appreciate any advice, and rmmr to be kind!! Jazakaallah in advance :))

also, i live in Ontario (Canada)

As the title says my fellow muslim brothers i have about 32k dollars (usdt in binance) i want to invest and leave it be till like 5 to 10 years from now and even more maybe i want like to put it in and forget all about it. If you have some suggestions please help your brother here.

How and when did you first get started?

What was your first investment?

Any lessons learned along the way?

Share your experience!

Hello! Before I learned more about my faith (Islam/muslim) I was investing in 70/30 between FZROX and FZILX (no bonds yet since I’m 25). I am having a hard time picking a halal (halal means aligning with Islamic principals) U.S. fund. I have dialed in the international with SPWO. The options are:

1. SPUS (s&P 500 fund)
2. HLAL (large and mid cap)
3. MNZL (newer, Russel 1000)
4. MNZL + SPUS

The reason it’s difficult is because MNZL gives us more of the market but has some additional ethical screening that I don’t agree with (halal screening which I want but then another ethical screening on top) thus leaves out holdings such as nvidia, google, etc.

I was thinking going with 60% MNZL, 30% SPWO, 10% SPUS to reintroduce some holdings that are not in MNZL but it does give overlap would start straying away from Boglehead philosophy. I would appreciate any insight thank you!

To clarify: SPWO is already locked in at 30%, so I’m only trying to decide how to build the 70% U.S. allocation. I’m not trying to chase recent performance or sector returns, my goal is a simple, broadly diversified, long-term Boglehead-style portfolio. MNZL appeals to me because of its broader Russell 1000-based universe, but I dislike the additional non-Sharia ethical screen. The 60% MNZL + 10% SPUS idea would still leave me at 70% U.S. / 30% international; SPUS would only be there to partially reintroduce some Sharia-compliant companies excluded by MNZL’s additional screen.

Salam alaikum
I’m gonna keep this short and concise

I am currently trying to do market research on a product that i haven’t found widely accessible in the market

it is essentially a sort of headband cushioned cover thing for the forehead that comes with gloves allowing people to pray their prayers regardless of the cleanliness of the floor they are on this is meant to be a viable alternative for when you cannot take a prayer mat with you

opinions, suggestions, constructive criticism etc. greatly appreciated

jazakum allah khair

Hello, yesterday i was bored and decided to code my old strategys for fun, i tested one with sharia complaint stocks and it returned 20% CAGR (after tests and walk forward testing and roll forward), i didnt believe it and asked chatgpt to attack it every way possible, it stayed all night attacking my strategy againt metrics, the next lines are made by AI.
1. Baseline 10-year backtest
Monthly rebalancing
25 stocks
Equal-weighted
35% maximum sector cap
Shariah screening
Fixed factor rules/weights
0.10% transaction cost assumption
Historical period: roughly Sep 2016–Aug 2026
Original result: 30.93% CAGR
This was later discovered to have survivorship bias.
2. Point-in-time S&P 500 membership / survivorship-bias test
You replaced today’s S&P 500 membership list with companies that were actually members at each historical rebalance.
Result:
CAGR: 19.21%
Max DD: −32.20%
Volatility: 23.22%
Sharpe: 0.83
Sortino: 1.08
This was one of the most important tests because it knocked the headline return from ~31% to ~19%.

4. Shariah-filter ablation test
   - Removed the Shariah filter while keeping everything else identical.
   - Shariah: 19.21% CAGR / -32.20% Max DD / 0.83 Sharpe
   - No Shariah: 16.26% CAGR / -39.02% Max DD / 0.63 Sharpe
   - In this specific sample, the Shariah screen improved both returns and risk metrics.
   - This does NOT establish that Shariah screening universally outperforms.

5. Pure momentum test
   - Stripped the strategy down to 12–1 momentum.
   - Full strategy: 19.21% CAGR / -32.20% Max DD / 0.83 Sharpe
   - Pure momentum: 19.09% CAGR / -33.52% Max DD / 0.78 Sharpe
   - Most of the return appears to come from momentum.
   - The additional factors mainly improved risk characteristics rather than CAGR.

6. Out-of-sample test
   - Development: Sep 2016–Dec 2021
   - OOS: Jan 2022–Aug 2026
   - Full strategy development CAGR: 19.98%
   - Full strategy OOS CAGR: 18.31%
   - OOS Max DD: -21.10%
   - OOS Sharpe: 0.79
   - OOS Sortino: 1.10
   - Pure momentum development CAGR: 17.10%
   - Pure momentum OOS CAGR: 21.46%
   - Neither strategy collapsed out-of-sample.

7. Randomized portfolio test
   - 1,000 random portfolios.
   - Same universe, 25 stocks, sector cap, equal weighting, monthly rebalance and costs.
   - Random median CAGR: 14.40%
   - Random average CAGR: 14.46%
   - 5th percentile: 11.33%
   - 95th percentile: 17.78%
   - Minimum: 8.88%
   - Maximum: 21.74%
   - Actual strategy: 19.21%
   - Actual strategy was above the 95th percentile of random portfolios.
   - This provides evidence that the ranking adds value beyond simply selecting random stocks from the eligible universe.

8. Transaction-cost sensitivity
   - Full strategy, everything else frozen.
   - 0.10% cost: 19.21% CAGR / -32.20% DD / 0.83 Sharpe
   - 0.25%: 18.03% / -32.25% / 0.78
   - 0.50%: 16.10% / -32.33% / 0.69
   - 1.00%: 12.32% / -32.50% / 0.53
   - 2.00%: 5.09% / -36.81% / 0.22
   - Performance degrades gradually rather than collapsing immediately.
   - At 1% costs, the strategy falls below 15% CAGR.
   - At 2%, performance becomes poor.

9. Execution-timing test
   - Same-close: 19.21% CAGR / -32.20% DD / 23.22% vol / 0.83 Sharpe
   - Next-day open: 17.69% / -32.85% / 23.04% / 0.77
   - Same-day VWAP proxy: 17.94% / -34.01% / 22.76% / 0.79
   - Pure momentum next-day open: 17.44% CAGR / -34.12% DD / 0.72 Sharpe
   - Next-day execution reduced CAGR by ~1.5 percentage points but did not break the strategy.
   - The VWAP figure is only a typical-price proxy because true intraday VWAP data was unavailable.

10. Rolling year-by-year stability test
    Full strategy:
    - 2019: +24.1%
    - 2020: +29.4%
    - 2021: +22.9%
    - 2022: -2.7%
    - 2023: +12.2%
    - 2024: +15.7%
    - 2025: +22.3%
    - 2026 YTD: +74.9% annualized pace

- 2022 was the major weak year.
- Full strategy beat momentum on CAGR in 4/8 years.
- Full strategy had shallower drawdowns in 6/8 years.
- 2026 YTD is annualized/pace data, not a true full-year result.

11. Drawdown/recovery analysis
    - 11 distinct drawdown episodes deeper than 5%.
    - Historical next-day-open Max DD: -32.85%.
    - Major episodes:
    - 2018: approximately -16.1%
    - COVID: approximately -14.7%
    - 2021–22: approximately -10.8%
    - 2026: approximately -12.1%, unrecovered at the time
    - Longest losing streak: 3 months.
    - Longest winning streak: 11 months.
    - 2020 COVID decline recovered by August 2020.
    - 2022 was choppy and finished at -2.7%.

12. Block bootstrap
    - 10,000 simulations.
    - 6-month blocks.
    - Based on the next-day-open execution series.
    - Actual CAGR: 17.69%
    - Median bootstrap CAGR: 17.52%
    - 5th percentile: 9.16%
    - 25th percentile: 14.04%
    - 75th percentile: 21.33%
    - 95th percentile: 27.30%
    - Median Max DD: -19.29%
    - Worst 5th-percentile DD: -29.22%
    - P(CAGR <5%): 0.54%
    - P(CAGR <10%): 6.90%
    - P(CAGR >15%): 68.35%
    - P(losing money over 10 years): 0.00% in the simulations.
    - The actual 17.69% CAGR was close to the bootstrap median.
    - Important limitation: bootstrap cannot create a bear market regime that wasn't present in the original sample.

13. Capacity/liquidity test
    - 3,025 position-months across 121 rebalances.
    - Compared each position against its own trailing 63-day average dollar volume.
    - $10M portfolio: maximum participation 1.2%
    - $25M: 2.9%
    - $50M: 5.8%
    - $100M: 11.6%
    - At $100M:
    - 0.0% of position-months exceeded 10% ADV.
    - 0.0% exceeded 25% ADV.
    - Thinnest stock actually held: IR (Ingersoll Rand), January 2020.
    - Its trailing average daily dollar volume was ~$34.4M.
    - Capacity appears very strong for personally relevant/small institutional capital.
    - This does NOT replace real execution/slippage testing.

14. Candle-quality / price-data test
    - Historical universe was subjected to candle-quality filtering.
    - No companies with usable financial data were excluded because of missing price data/candle quality in the survivorship investigation.
    - Price data therefore was not the major source of the survivorship problem.

15. Remaining survivorship/data bias
    - Point-in-time membership correction substantially reduced the original result:
    - Current universe: 30.93% CAGR
    - Corrected point-in-time universe: 19.21%
    - Of 219 companies that left the S&P 500 since 2016, only 20 could be recovered with usable historical financial data.
    - 124/219 (57%) had no Yahoo market-cap data.
    - 169/219 (77%) failed the financial screen overall.
    - 30/219 (14%) failed the business-activity screen.
    - Therefore, residual bias almost certainly remains.
    - Complete point-in-time fundamentals is still the major unresolved backtest issue.
    - A paid historical fundamentals database may be required to properly resolve it.

CURRENT HONEST RESULT:
- Original backtest: 30.93% CAGR
- Corrected universe: 19.21% CAGR
- Realistic next-day-open execution: 17.69% CAGR
- Next-day-open Max DD: -32.85%
- Bootstrap median CAGR: 17.52%
- Bootstrap 90% CAGR range: ~9%–27%
- Randomized portfolio 95th percentile: 17.78%
- Actual strategy: 19.21%, above the 95th percentile
- OOS CAGR: 18.31%
- Capacity: strong
- Execution stress: passed, but not bulletproof
- Remaining major issue: incomplete point-in-time fundamentals
- Final real-world validation still needed: 3–6 months of paper/live execution to measure actual slippage and fills.

Human here: i put it on paper trading on IBKR, i want tips from seniors about the strategy i just made, thanks!

ASalaam Brothers and Sisters

I am currently invested in HSBC Islamic Global Fund Acc ( tracks the Dow Jones 100 Titan Index according to fact sheet). However due to its concentrated nature, was considering moving to another more diversified global option. The HSBC fund (on Hargreaves Lansdown) I thought would track the Sharia 1200 (where it will track 500ish companies) around March 2026, as changes were announced. However it appears mine will not as of checking recently.

I am in the UK, but the shortlist I have so far to transfer to:

1. ISWD

2. HIWS

3. MWIM

4. IGDA

I am leaning towards ISWD at the moment. And adding Isde to cover off the emerging markets. Is this the correct path to follow?

Salam everyone,

French investor here. I've been investing through a PEA (a French tax-advantaged stock account) for 5+ years and I try to stay strict on shariah compliance.

My process today, I spot opportunities on the French market, then check each stock one by one on Musaffa before buying. I also try to keep an eye on the companies I already hold, since debt ratios change and a compliant stock can become non-compliant over time.

Honestly it's getting heavy. Manual screening, monitoring over time, figuring out when a position stops being halal and should be sold... And islamic ETFs (iShares/HSBC MSCI World Islamic) are not eligible for the PEA, so I can't simplify without losing the tax advantage. Stock picking or nothing.

So I'm curious how others deal with this, especially if you're in France or Europe. What tools do you use? Do you ever re-check your existing positions or just at purchase? Does this monitoring weigh on you too or is it just me?

Thank you for any input.

I've been trying to find some halal stocks or ETFs to invest in but seems difficult to find these days. Companies either are significantly leveraged in interest or have associations with Israel. If you guys have any examples for me to look into, I'd appreciate it.

Anyone keep a generous allocation (10% or more)of their portfolio in bonds? If so, what percentage of your portfolio is SPSK and why?

Also at what point do you feel the cost of missing out on capital stock gains outweighs the stability of bonds?

Hello, I want to invest monthly in an etf and would like it to be the MSCI world Islamic ETF because its sharia conform.
I have in mind to invest 1000 euro each month.
Is this a safe thing to do? Or should I rather buy physical gold. I know etf won’t make a high win, I just want the money to be overall safe (on the longrun) and also build retirement plan.