“O you who have believed, do not consume one another’s wealth unjustly but only [in lawful] business by mutual consent.”
(Qur’an, 4:29)

Under Islamic law, investors avoid engaging in immoral or unethical businesses. In addition to the prohibition of riba (interest), Shariah-compliant investing also restricts involvement in other haram (forbidden) activities, including trade in commodities such as alcohol, tobacco, or pork.

Investors typically avoid companies that generate income from these products or activities in excess of a de minimis level, usually defined as less than 5% of total revenue. Any such haram income that does occur may be donated to charity through a process known as purification, in order to maintain Shariah compliance.