Our Methodology

At Musaffa, our intense qualitative and quantitative screening process follows AAOIFI* methodology. By using this approach, we produce unified, accurate, and detailed reports on company stocks on a global scale.

Prohibited Business Activities

Gambling

Alcohol

Pork
Related Products

Tobacco

Marijuana

Adult
Entertainment

Cloning

Firearms
And Defence

Institutions That
Deal With Interest

Excess Debt

AAOIFI Stock Screening Methodology

Revenue Ratio

IMPERMISSIBLE REVENUE

TOTAL REVENUE

< 5%
Interest Ratio

INTEREST-BEARING SECURITIES AND ASSETS

TRAILING 36-MONTH AVERAGE MARKET CAPITALIZATION

< 30%
Debt Ratio

INTEREST-BEARING DEBT

TRAILING 36-MONTH AVERAGE MARKET CAPITALIZATION

< 30%

Our Processes at Musaffa

Our exceptional financial analysts produce an accurate and comprehensive report on each publicly traded company by analyzing all publicly available information, including annual and quarterly reports, company websites, company presentations, press releases, and much more.

We offer three Shariah-compliance statuses for the stocks we cover: Halal, Not Halal, and Questionable. The stocks we have not yet analyzed will be under “Coming Soon” status.

Once we determine that the stocks are Shariah-compliant, we divide the Shariah-compliant stock universe into five groups and rank them from 1 to 5. The higher the ranking, the more Shariah-compliant the stock is. For example, suppose a particular stock receives a ranking of 5. In that case, that stock belongs to the most Shariah-compliant stocks group.

Today we cover over 1000 stocks in Indonesian, Malaysian, and United States markets. We will keep covering more stocks every week and constantly update their Shariah-compliance statuses on the platform.

We survey annual and quarterly reports, company presentations, press releases, and more to provide you with the most accurate and up-to-date information on your stocks. We also make informed adjustments based on the footnotes revealed on reports to give you a clear picture of a company’s financial standings.

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