Questions about how to Interpret Zoya

💰 Everyday Islamic Finance Savings & Investing
#1

Salam Everyone,
Hello, I hope that you all are doing well. I have some questions regarding Zoya App:
Based on the app, if something is haram in the business screen, the stock is haram. That part I know. What about financial screen? I thought I read somewhere someone from the Zoya Team saying wait a quarter if you already have the stock to see if it becomes halal based on financial screen?

Question Number 2: Does the app take into account potential ethical violations the company might face in determining halal or haram? For example, nike is listed as halal stock. But there have been many reports of child and slave labor to produce their items. Would that make nike haram?

Thank you so much for creating an app to help guide us in our financial endeavors. May Allah SWT reward your efforts immensely and keep on allowing Zoya to grow into the best application out there. Salam and May Allah SWT bless everyone and grant us all the highest level of paradise.

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#2

…in the same line of above question
Salam Aleikum Everyone and Jazakum Allah khayr with helping fellow muslims with halal investment,

Want to clarify the process of stock being halal or not. For instance, UPS stock was compliant initially then couple of weeks ago got into the yellow categories ( questionable). I got rid of it when it was questionable… yesterday, I checked it and it was compliant again.

Plz advise

Your br. Houcine

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#3

Hey Walaikum Asaalaam @Hamza_Sultan and @Houcine_Ait_Ahmed, great to have you both with us!

Thank you so much for your words of encourage and these thoughtful questions. I’ll try my best to answer the questions you’ve outlined above, but please feel free to ask for further elaborations or any follow up questions.

I believe the questions y’all are bringing up are covered in the following two FAQ articles (how does Zoya determine compliant and how often are does Zoya update compliance).

Our analysis runs whenever we companies publish their earnings. It’s common for companies to publish their numbers once a quarter and we will update our report following that.

Zoya determines shariah compliance based on the AAOIFI methodology. We’re not screening for potential ethical violations at this point, although I’d love to learn what people look for when they consider a company as breaching ethics.

As for what to do when a stock’s compliance changes I’ll start with the caveat that I’m neither a sheikh and Zoya is not giving advice regarding what to do with your own investments. I would start by saying that it’s important to consider why is the company no longer shariah compliant. For example if a company now has non compliant shariah revenue as a part of their business going forward, it’s probably better to stay away. If a companies compliance is changing because of their financial ratios, I feel it’s better to take a long term view of whether the company is taking on debt to deal with a short emergency (during the pandemic for examples) or if this is a part of their new company structure. Allah knows best, but this is the approach I’m taking now until I learn more.

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#4

Thank you so much Brother Farhan for your quick response! I really appreciate your response. Do you guys offer a student discount?

#5

My pleasure Hamza! Absolutely, it’s covered here.

To apply for the student discount fill this out.

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#6

Awesome! Just filled it out! Looking forward to using the application in more detail now!

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