Shari’ah investment screening criteria : a critical review

Abstract EN

The primary objective of the study is to provide a comprehensive description of the contemporary Sharīʿah investment screening process and its implication on the practices of managing mutual funds.

This will be done by critically reviewing the application of such screening criteria, from both Sharīʿah and practical perspectives, and providing some suggestions for improvement.

In practice there appears to be inconsistencies in the Sharīʿah investment screening criteria among Islamic investment institutions, as well as the changing of the Sharīʿah rules over time.

That shakes confidence in the application of Sharīʿah screening criteria, which might adversely affect the Islamic mutual funds industry.

The paper, therefore, attempts to identify such inconsistencies and proposes some practical solutions which may restore confidence in the investment screening process.