Defense/weapons stocks and permissibly


So one thing I noticed in zoya is that it flags weapons and defense revenue as not shariah compliant. Does someone know what is the justification aofi uses for saying these categories are not compliant?

I know some stocks like BA are flagged as not shariah for bds reason (tho that raises the questions is it really not halal just because of bds)

Yeah just some clarification on the subject would be great. I am reaching out to local scholars to get their opinion on the issue but wonder if what is the app using for that.

This is an interesting topic.
(1) Firstly coming to AAOIFI guidelines only 3 specific industries are mentioned as non compliant

  • Riba / Interest, Pork, Alcohol. So clearly the guidelines are not a complete ‘rulebook’ and left to interpretation. It is obvious that gambling and adult entertainment is not permitted.

(2) In my understanding Tobacco is consider Makruh and not Haram. However, most screeners and investment funds rule out Tobacco

(3) Coming to defense, another grey area. Many rule it out. Atleast one competing screener does not rule it out. Defense itself is a wide industry from actual weapons manufacturing to the IT services and supply chain. I do see Zoya has some of the IT services as compliant.

Discussion on this topic would be good. Everyone quotes AAOFI but AAOIFI does not give an exhaustive list that everyone puts up on their website.