Table of Contents
Shariah Compliance
Comprehensive guide to our Islamic finance principles and compliance framework.
- 100% Halal
- Scholar Certified
- AAOIFI Standards
- Continuous Monitoring
Shariah Compliance
At Ethis, every investment opportunity is rigorously reviewed and approved by our independent Shariah Advisory Board to ensure full compliance with Islamic finance principles. Our commitment to halal investing means you can invest with complete confidence that your investments align with your values.
Islamic Finance Principles
Core Principles We Follow
Prohibition of Riba (Interest)
All investments are free from interest-based transactions. Returns are generated through profit-sharing, asset-backed investments, and ethical business activities.
Risk and Profit Sharing
Investors share both profits and losses based on actual business performance, promoting fair and ethical wealth distribution.
Asset-Backed Investments
All investments are backed by real economic activities and tangible assets, avoiding speculative and artificial financial products.
Ethical Business Activities
We only finance halal businesses that benefit society and contribute to sustainable economic development.
No Riba
Interest-free financing
Prohibition of usury/interest
No Gharar
Excessive uncertainty avoided
Clear contracts with defined terms
No Haram
Prohibited activities excluded
No alcohol, gambling, tobacco
Mudarabah
Profit-loss sharing
Fair distribution of risks and rewards
Shariah Advisory Board
Independent Scholarly Oversight
Our Shariah Advisory Board consists of renowned Islamic scholars and experts in Islamic finance who provide independent oversight and guidance on all investment opportunities and platform operations.
Board Responsibilities
- Review and approve all investment opportunities
- Develop Shariah compliance policies and procedures
- Monitor ongoing compliance of funded businesses
- Provide guidance on complex Shariah matters
- Issue annual Shariah compliance reports
Independence & Transparency
- Independent decision-making authority
- No conflicts of interest with platform operations
- Quarterly board meeting minutes published
- Public Shariah compliance certificates
- Annual external Shariah audit
Compliance Screening Process
Multi-Stage Review Process
Every investment opportunity undergoes a comprehensive multi-stage Shariah compliance review before being made available to investors. This rigorous process ensures 100% compliance with Islamic finance principles.
Initial Business Screening
3–5 business daysComprehensive review of business activities, revenue sources, and operational practices to identify any prohibited activities or structures.
Financial Analysis
2–3 business daysDetailed examination of financial statements, debt levels, and income sources to ensure compliance with Islamic finance ratios and principles.
Shariah Board Review
5–7 business daysIndependent review by our Shariah Advisory Board members who examine all documentation and provide final approval or recommendations.
Ongoing Monitoring
ContinuousContinuous monitoring of approved investments to ensure maintained compliance throughout the investment period.
Prohibited Activities
Activities We Never Finance
In accordance with Islamic principles, we strictly prohibit financing any business or activity that is considered haram (forbidden) in Islam. Our screening process ensures zero exposure to these sectors.
Financial Services
- Conventional banking
- Insurance companies
- Interest-based lending
- Derivatives trading
- Forex speculation
Entertainment & Lifestyle
- Gambling & casinos
- Adult entertainment
- Alcohol production/sales
- Tobacco industry
- Music & entertainment (controversial)
Food & Agriculture
- Pork production
- Non-halal meat processing
- Alcohol beverages
- Restaurants serving pork/alcohol
- Non-halal food chains
Halal Investment Criteria
What Makes an Investment Halal?
Our investments must meet strict criteria to be considered halal and suitable for Muslim investors. These criteria are based on classical Islamic jurisprudence and modern Islamic finance standards.
Business Activities
- Halal manufacturing and production
- Technology and innovation
- Healthcare and pharmaceuticals
- Education and training
- Real estate development
Financial Ratios
- Debt-to-market cap ratio < 33%
- Interest income < 5% of total revenue
- Cash + interest-bearing securities < 33%
- Accounts receivable < 49% of total assets
Social Impact
- Positive societal contribution
- Environmental sustainability
- Ethical employment practices
- Community development
- Fair trade practices
Governance
- Transparent management structure
- Regular financial reporting
- Ethical business practices
- Compliance with regulations
Certification & Monitoring
Shariah Certification Process
Application Review — business & financial analysis
Scholar Review — independent board evaluation
Certificate Issuance — formal approval
Ongoing Monitoring — continuous verification
Continuous Monitoring
Quarterly Reviews
Regular assessment of business activities and financial ratios
Annual Audits
Comprehensive yearly Shariah compliance audit
Incident Response
Immediate action for any compliance violations
Investor Updates
Regular compliance status reports to investors
Resources & Contact
Shariah Compliance Resources
Educational Resources
- Islamic Finance Principles Guide
- Monthly Shariah Compliance Reports
- Investment Certificates Database
- Scholar Fatwa Collections
Contact Information
- [email protected]
- Response within 2 business days
- Monthly virtual Q&A sessions
- Multi-language support (TR, EN, AR)