In most eyes, Pax Americana is dying a slow death. The nation “auditioning” to succeed it is Israel. The new version of empire, Pax Judaica, promises to sustain the existing war-based, extraction-driven global order, but run it with greater cold-blooded efficiency.

The long record of Israeli atrocities — a continuation of evils perpetrated by colonial European and then American powers — are proof enough for the global elites. And the result is the emerging economic architecture of surveillance, data control and logistics designed to preserve the dominance of western capital.

Muslim nations, who already struggle with true political and financial independence, may find it ever harder to survive this structural shift.

Infrastructure of empire

Unlike the incumbent Pax Americana that relies on finance (atop the powerful but irreparably corrupt military industrial complex), Pax Judaica is being built around physical and digital infrastructure (beyond sheer military might) linking Europe and east Asia via Israel.

In addition to energy control, the idea is to reroute trade and data to flow via Israeli-governed nodes around west Asia. The proposed India-Middle East-Europe Economic Corridor running through Israel and the complicit Gulf is one such channel.

Realising these ambitions would necessarily mean subordinating surrounding Arab states (which is what Greater Israel, a project already underway, envisions). If not occupied directly, they become mere transit zones subjugated by violent proxies and bound by imperial rules.

Tayyib economics

At least in theory, Muslim nations have an alternative. In the form of tayyib economics. Tayyib demands all activities to be beneficial to society, so it is inherently anti-imperialist. Its shared risk structures advance the real economy and promote the equitable circulation of wealth — in direct opposition to exploitative debt traps and concentrated power championed by empire finance.

To survive outside Pax Judaica, Muslim states must build independent and resilient infrastructure. This means rejecting initiatives that enforce reliance on western tech and Israeli logistics — and collaborating instead within the Global South to develop sovereign data centres, regional payment systems and logistics corridors that bypass imperial chokepoints.

Tayyib investing

Retail investors have a role to play, too. To align portfolios in resistance to anything empire related by applying a rigorous tayyib screen on top of basic Shariah compliance. Avoid global index funds that are indirectly funding the military-industrial complex and tech firms behind the imperial surveillance infrastructure. Avoid complicit GCC companies that are actively financing the new oppressive regional architecture.

Instead, Muslim investors should actively seek out Islamic equities and funds focused on the real economy in emerging markets. Look for tayyib opportunities in Asia, for one, within sectors like renewable energy, independent regional logistics and neutral technology. By directing capital toward local, regenerative enterprises, Muslims can bypass compromised “halal” hubs and contribute to funding a tayyib economy.

As an example, consider few tayyib-vetted clean energy stocks:

• Malaysia’s Solarvest Holdings (SLVEST.KL),

• Indonesia’s Pertamina Geothermal Energy (PGEO.JK), and

• China’s Xinyi Solar (968.HK).

Takeaway

Gaza, Lebanon, Iran “are only the beginning”. They only demonstrate how far Israel is prepared to go to secure its spot at the top. In the process of materialising, Pax Judaica will undoubtedly give way to a much more overtly ruthless global order.

Are Muslim economies ready for the challenge? Definitely not. In fact, the Ummah probably hasn’t been weaker than at any other point in Islamic history. Yet our timeless foundations are always there to help us take a principled stand.

At this juncture, tayyib directs us toward economic sovereignty — a critical goal in protecting populations from long-term financial coercion and surveillance capitalism. For that, capital must be intentionally redirected away from institutions that normalise or profit from imperial networks, physical or digital.

Start with simple tayyib filters (no weapons, no surveillance or occupation beneficiaries). Look for Shariah compliant funds that integrate justice, environmental stewardship and social benefit in a real way. Finally, push scholars and managers to adopt a tayyib, not just halal, lens.

Now, the conventional doctrine of disaster capitalism stokes panic-buying of fossil fuels as prices spike in response to Iran closing the Strait of Hormuz and Gulf production sites coming under fire. For tayyib and ethical investors, though, this is a definitive signal to divest from war-driven oil and pivot to neutral renewables.

“Halal” playbook

The uncomfortable truth is that even Muslim investment circles will feature war profiteers. Their standard advice is predictable: buy oil majors.

By conventional logic, US energy stocks like ExxonMobil (XOM) and Chevron (CVX) — along with peers like Shell (SHEL) and BP (BP) from vassal states across the Atlantic — act as a hedge since they are the prime beneficiaries of supply fears, and it is they who get oil licenses in newly occupied territories.

The thing is, even if these names were technically Shariah compliant, it wouldn’t cancel out their profits being tainted with imperial aggression (on top of environmental destruction). This blood money is what mainstream Islamic ETFs happen to be full of.

So if your portfolio rises after the Epstein regimes have murdered elementary school girls in full view of the world, you’re not investing. You’re racketeering from the war machine.

Energy pivot

The more tayyib, or wholesome, alternative is to vote for energy sovereignty over imperial resource extraction. To pivot capital away from Western fossil fuel giants (and compromised GCC oil) that cash in on collective shock events by design — and into Asian renewable infrastructure. These are companies building the grids, solar farms and geothermal plants that allow Muslim nations to decouple from the petro-dollar fuelled hegemony.

Here are some tayyib alternatives to blood oil, in Muslim-majority Malaysia and Indonesia, as well as China.

1. Malaysia: Solarvest Holdings (SLVEST)

• Thesis: Malaysia is aggressively targeting renewable capacity with Budget 2026; Solarvest is a pure-play beneficiary of the government’s greening initiatives.

• Tayyib: Unlike oil majors that profit from scarcity, Solarvest profits from abundance. It builds the infrastructure that allows local businesses to generate their own power, reducing reliance on the national grid and fossil fuels. Revenue is purely domestic, with no link to US war logistics.

• Shariah status: Compliant as screened by Securities Commission Malaysia.

2. Indonesia: Pertamina Geothermal Energy (PGEO)

• Thesis: Indonesia holds 40% of the world’s geothermal reserves; state-backed PGEO is monetising this massive clean energy opportunity.

• Tayyib: While nickel miners in Indonesia are plagued by environmental scandals, PGEO extracts heat from the earth without the strip-mining devastation. Plus, the stability of geothermal power contributes to national resilience of the country with the largest Muslim population in the face of war-driven oil price shocks.

• Shariah status: Part of the Indonesia Sharia Stock Index.

3. China: Jinko Solar (JKS / 688223)

• Thesis: If you want to invest in the actual hardware powering the global transition, look to China. Jinko is a leading supplier of solar modules.

• Tayyib: Western media loves to smear all things Chinese, but the fact that Jinko maintains access to US/EU markets post-audits should dispel doubts. More importantly, Chinese technology is lowering the cost of green energy for millions in the Global South — much to the chagrin of the western military-industrial complex.

• Shariah status: Check Shariah screens or do financial ratio calculations on your own. (Xinyi Solar (968.HK), a manufacturer of solar glass, is another option.)

Takeaway

Iran has what most Muslim nations don’t have the least bit of: the courage, the tenacity and the guts to stand up to the American bully and its Zionist overlords. And for that crime of sovereignty, for refusing to kiss the imperial boot, it has suffered tremendously under a brutal US stranglehold for the past many decades.

This latest act of USraeli aggression should push Muslim investors to cleanse their portfolios of war trades (if, for some reason, they still haven’t) and back instead companies that build peace. Divesting from volatile fossil fuels and investing in sustainable future is more than a personal choice — it’s a bid for a world where the Ummah powers itself, free of threats from outside or treacherousness from within.

Disclaimer: Nothing you read on Tayyib Finance constitutes financial advice. There is no guarantee of Shariah compliance of any particular stock at any particular time, since ‘Shariah compliance’ is fluid depending on the provider of judicial opinion and must be regularly affirmed. Similarly, there is no assurance that the same stock is simultaneously ‘tayyib’ (or Islamically ethical). Do your own research.

Beyond the Western Hemisphere — still treated as their personal backyard to be tormented, terrorised and plundered with impunity — Iran now stands as the immediate target in an already embattled middle east.

What if our Muslim money is quietly underwriting these very imperial agendas? The simplistic Shariah-compliance checklists devised by Islamic finance legalists were never enough. What criteria, then, should guide tayyib investments?

Here is a three-level audit to help Muslim investors de-imperalise their portfolios.

Level 1: ‘Lethal Aid’

This seems a no-brainer, yet it manages to slip past some Islamic screens (like that of the SPUS ETF at the height of the Gaza genocide). Any defense-adjacent company that manufactures and sells lethal hardware to war-hungry regimes — whether the US Department of War or the Israeli Ministry of “Defence” — fails outright.

Stocks to fail (among others):

• Boeing (BA): Supplies military tankers for long-range strikes under a guise of civilian aerospace.​

• General Electric (GE) & Honeywell (HON): Provide engines and guidance systems for combat platforms behind a “diversified industrial” facade.

Level 2: ‘Dual-Use’ Tech

The biggest blind spot in Islamic investing circles is dual-use tech. Tech companies — the new defense contractors for AI targeting and cloud logistics — are routinely (and perhaps deliberately) overlooked, particularly by Islamic fund managers (like Wahed) and their passive investors.

Stocks to fail (among others):

• Nvidia (NVDA) & Palantir (PLTR) enable AI-driven surveillance and targeting across modern battlefields.

• Microsoft (MSFT), often the largest holding in halal ETFs, is deeply integrated into military command-and-control systems.

• Amazon (AMZN) & Google (GOOGL) supply the infrastructure for military surveillance and logistics.​

Level 3: ‘Supply Chain’ Enablers

Next are companies — often presumed to be Shariah-compliant in business — that sustain occupation or military deployment by supplying essentials such as fuel, logistics and construction equipment. They feed on destruction, hence tayyib investors should go the opposite way.

Stocks to fail (among others):

• Caterpillar (CAT) bulldozers are the preferred tool for demolishing Palestinian homes and fortifying military berms.

• ExxonMobil (XOM) & Chevron (CVX), de facto arms of US foreign policy, profit from colonial grabs — Venezuelan oil most recently — and war-driven price spikes in chokepoints like the Strait of Hormuz.

Tayyib Alternatives?

But if we strip out the imperial war machine, what is left? A lot, actually. Investors who are anxious about de-Americanising need not worry. My suggested pivot is to look east by moving capital into the civilian economy of the Muslim world and non-aligned Asia.

• Domestic focus: Companies feeding, connecting or treating people; think Indofood (Indonesia), Meituan (China), IHH Healthcare (Malaysia).​

• Infrastructure sovereignty: Firms building independent logistics and renewable infrastructure, like Mitratel and Solarvest in ASEAN.

• Neutral zones: Prioritise markets that have refused to normalise relations with the zionist entity and sectors insulated from US sanctions or war.

Future posts will cover these and more in greater detail. In the meantime, feel free to browse through previously covered ideas.

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Disclaimer: Nothing you read on Tayyib Finance constitutes financial advice. There is no guarantee of Shariah compliance of any particular stock at any particular time, since ‘Shariah compliance’ is fluid depending on the provider of judicial opinion and must be regularly affirmed. Similarly, there is no assurance that the same stock is simultaneously ‘tayyib’ (or Islamically ethical). Do your own research.

What has been the Muslim response to the slow, torturous execution of these brave defenders of the defenseless? Have British Muslims in particular mounted anything resembling meaningful resistance to this state terror?

At the very least, we must ask if individually we are doing the bare minimum of withdrawing our capital from the economic structures that sustain injustice at home and abroad. Tayyib investors should lead by example.

Mainstream Islamic toolkit sold in the UK

As far as equities are concerned, Islamic investment options local to the UK extend, beyond individual stock picking, mainly to halal funds from HSBC and iShares. These tend to make up the bulk of individual savings accounts and pensions held by British Muslims. And they are all highly problematic, some more than others.

1. Islamic equity fund from HSBC

HSBC’s flagship offering, the HSBC Islamic Global Equity Index Fund, comes in different share classes and is accessible through multiple wrapper/feeder structures. The fund tracks the Dow Jones Islamic Market Titans 100 Index whose top 10 holdings (accounting for more than 50% of the portfolio) are the familiar US mega-caps — from NVIDIA, Microsoft and Amazon to Alphabet, Meta and Tesla — embedded into US and Israeli infrastructure, militarily or otherwise.

2. Islamic equity funds from iShares

iShares offers a somewhat wider range, spanning the global iShares MSCI World Islamic UCITS ETF (ISWD), the US-focused iShares MSCI USA Islamic UCITS ETF (ISUS) and the emerging markets iShares MSCI EM Islamic UCITS ETF (ISDE). As the names suggest, these funds are built around corresponding MSCI Islamic indices:

• The MSCI World Islamic Index focuses on developed countries, so it ends up as the same US-heavy mix of apartheid-enabling companies loyal to the imperialist enterprise, including a number of major fossil firms.

• The MSCI USA Islamic Index has a US-only focus with concentration in tech, healthcare and consumer names, hence holdings like Microsoft, NVIDIA, Amazon, Meta and big pharma partial to the zionist agenda.

• The MSCI Emerging Markets Islamic Index is heavier Asia, but that is no automatic pass: it is also heavy in dirty energy and carries large exposures to traitorous GCC regimes such as Saudi Arabia and the UAE.

A note on fund managers

On top of these supposedly halal funds being deeply un-Islamic from a tayyib perspective, another reason why they should be avoided is their fund management. Both HSBC and iShares are themselves part of the problem, so funnelling Muslim money through these institutions makes little sense.

Although HSBC divested from Elbit Systems, the foremost military contractor to the IDF, it continues to fund other companies like Caterpillar linked to Israel’s war machine as well as those operating in illegal Israeli settlements.

iShares, in turn, is owned by BlackRock, one of the world’s biggest owners of arms manufacturers, genocide-enabling tech firms and fossil fuel majors. Led by Larry Fink, a staunch zionist, BlackRock is also a big investor in Israel.

Individual problematic UK stocks

As for individual British stocks often labelled Shariah-compliant by mainstream screens, most sit within the UK’s arms-war-climate nexus. Carbon majors BP and Shell profit from war-driven oil price spikes and, alongside their US counterparts, supply to Israel, including its armed forces. BAE Systems is the principal listed weapons company arming Israel; of course, the wider UK arms ecosystem involves many more firms with local sites, like Elbit subsidiaries and Teledyne plants.

Takeaway

At a compliance level, these halal UK ETFs — like the other Islamic ETFs I looked at before — may pass the standard checks. But from a tayyib standpoint, they fail on two counts. First, their portfolios are chock-full of companies facilitating apartheid, modern day imperialism and environmental collapse. Second, their managers are deeply entangled in the political economy that enables these crimes.

When a Muslim investor buys ISWD or ISUS, not only are they exposed to controversial holdings inside the ETF, they also pay fees to a manager scaling the very portfolios the ummah is supposed to be defunding. Muslim and all conscientious investors should favour values‑aligned managers — or pursue direct stock picking using Islamic indices as a starting universe, combined with the suggested tayyib screen or their own.

Here is a basic guide to halal stock picking:

Feel free to browse through the archives of Tayyib Finance for halal investment alternatives that have been previously covered.

Just like conventional ESG ratings don’t signal real sustainability, Islamic finance — the way it is practised — doesn’t equal virtue. The industry has never truly moved beyond Shariah compliance in a narrow, legalistic sense. So-called “green” products, including Islamic bonds, have been little more than an attempt to milk ESG trends.

Genocide profiteers

Here is a clear case in point. US-based Islamic ETFs SPUS and HLAL are both built around supposedly valid Shariah indices and profess adherence to “socially responsible principles”. Yet they continue to profit from stocks of companies implicated in Palestine and other imperial wars. Their cumulative returns — in the 30–40% range from October 2023 to date — are the blood premium that their Muslim unitholders have been enjoying unawares.

From halal to tayyib

Tayyib is as Islamically rooted as halal though it has not taken off in the same way. It’s a shame, given that they appear in the Quran together in multiple verses, with halal defining legal permissibility and tayyib referring to purity and ethical sourcing. Since tayyib is thus broader in meaning, it would make complete sense to apply it in finance.

Islamic finance is only starting to look into tayyib, with some quarters producing broad principles that do not amount to anything in practice. Knowing how financial regulators operate and seeing how the AAOIFI has not budged throughout the Gaza genocide, we shouldn’t hold our breath on the tayyib finance project just yet.

Individual responsibility

Exposing Islamic financial practices as unethical is a bit like myth-busting. The truth is as Muslims we don’t even need to rely on western models of ethics that are fraught with moral relativism and greenwashing. We have an existing framework that is already perfect by design — and that is Shariah.

While all Islamic financial institutions, including fund managers, claim to follow it, Maqasid al-Shariah (objectives of Islamic law) are not fulfilled simply by being riba free (to borrow one of Wahed’s favourite lines) but require so much more in the realm of justice, for human welfare and the nature that has been entrusted to us.

To close the integrity gap in Islamic investing, Muslim investors who are disillusioned with superficial halal and ESG labels should consider applying the tayyib concept independently — by overlaying Shariah compliance and integrating justice, impact and stewardship to inform their investing decisions.

Say, “Not equal are the evil and the good, although the abundance of evil might impress you.” So fear Allah, O you of understanding, that you may be successful.

Al-Quran (5:100)

Below is an example of the tayyib screen being applied in practice:

Economic power, once concentrated in the hands of a few Western nations, is undergoing a profound shift. The global Muslim population has grown to approximately 2 billion people, representing nearly a quarter of humanity, with consumer spending across halal sectors reaching $2.43 trillion in 2023 and projected to rise to $3.36 trillion by 2028. Within this vast community lies an emerging upper middle class — estimated at 150 million strong — wielding collective spending power of $1.7 trillion annually.

This represents 20% of the global upper middle class population of 750 million, a demographic force that cannot be ignored. From Indonesia and Bangladesh to Egypt and Nigeria, every year over 100 million people worldwide join the middle class ranks, with the Muslim world contributing significantly to this growth. These are not merely consumers — they are young, digitally connected Muslim futurists who make up 42% of the global Muslim population and are disproportionately influential in shaping consumer trends, both within the Ummah and beyond.

Yet despite this immense economic potential, our capital remains fragmented, our institutions underdeveloped, and our collective influence far below what our numbers and purchasing power should command. While others have built financial ecosystems, innovation hubs and investment networks that amplify their economic strength, we are still working to channel our resources effectively. To truly harness this $1.7 trillion in annual spending power, we must think strategically — by building unified financial platforms, establishing world-class halal investment vehicles and creating institutions that can compete on the global stage.

Note: The data above is as of the latest available date and is intended to be directional rather than precise. The purpose is to highlight areas of opportunity and growth within the Ummah. Preview image by Salah Regouane on Unsplash.

Education, once the jewel of the Muslim world, was the very foundation of our civilisation’s greatness. From the House of Wisdom in Baghdad to Al-Qarawiyyin in Morocco and Al-Azhar in Cairo, Muslim scholars once led the world in knowledge, science and philosophy. The works of scholars such as Al-Khwarizmi, Ibn Sina and Ibn Rushd shaped the course of global learning and laid the groundwork for the Renaissance itself.

Today, however, our universities are no longer among the world’s leading institutions. Education remains the bedrock of new thought — the place where ideas are born, innovations are nurtured, and nations secure their future. From robotics labs at MIT and cutting-edge research in China to the thriving startup culture around Stanford, others are building ecosystems that shape global progress. We too must create environments where our talent can be moulded to compete at the highest level.

At present, we are losing much of our best talent abroad, while few from other nations seek to study within our borders. To reverse this, we may need to think unconventionally — perhaps by consolidating our educational institutions, pooling our resources, and building world-class centres of excellence capable of standing shoulder to shoulder with the best in the world.

Note: The data above is as of the latest available date and is intended to be directional rather than precise. The purpose is to highlight areas of opportunity and growth within the Ummah. Preview image by Salah Regouane on Unsplash.

The Global 100 companies wield immense economic and political power, controlling over $20 trillion annually and influencing global trade, technology and governance. Their executives shape international policy and wield influence comparable to governments, steering agendas that affect nations worldwide. These corporations are not merely businesses — they are power brokers defining the modern world order.

Yet among them, only one Muslim-owned firm holds a place, revealing a stark imbalance in influence and opportunity. Greater Muslim representation would not only strengthen economic sovereignty but also elevate human capital. More Muslim-owned global behemoths could empower the Ummah to rise collectively through education, innovation and leadership.

Note: The data above is as of the latest available date and is intended to be directional rather than precise. The purpose is to highlight areas of opportunity and growth within the Ummah. Preview image by Salah Regouane on Unsplash.

Finance is a key enabler of every economy, driving both wealth creation and wealth distribution. Conventional finance, however, is haram. In fact, riba (or usury) is so detested that it is the only sin that brings Allah’s declaration of war upon those who commit it.

Yet, the prevalence of conventional finance in our economies — even in Muslim-majority countries — suggests that many Muslims are either unaware or not truly fearful. Today, only a few nations have banking systems where the majority of financial activity aligns with Islamic principles.

With the immense wealth Allah has blessed us with, we must strive to build strong Islamic financial ecosystems. If Muslims themselves lack trust and confidence in Islamic finance, despite the severity of the warning against riba, how can we expect to attract others to our way, innovate and compete on the global stage?

Note: The data above is as of the latest available date and is intended to be directional rather than precise. The purpose is to highlight areas of opportunity and growth within the Ummah. Preview image by Salah Regouane on Unsplash.

In the Quran, the term Sadaqah is used broadly to mean spending in the way of Allah, encompassing all forms of giving and contribution.

A well-known verse on strength appears in Surah Al-Anfal (verse 60):

While the verse references preparation in a historical context, its underlying message remains timeless — the importance of building strength and readiness, whether through financial capability, education or human development, to serve and uplift the community.

Note: The data above is as of the latest available date and is intended to be directional rather than precise. The purpose is to highlight areas of opportunity and growth within the Ummah. Preview image by Salah Regouane on Unsplash.

Yet, in a contradictory way, the genocide in Sudan has been largely a silent one, trivialised almost on all sides as just another civil strife between local power-hungry factions. The truth, as always, is more complicated.

Third parties are involved, and one immediately responsible for the massacres perpetrated by the Rapid Support Forces in Darfur is the United Arab Emirates. This has been affirmed by the UN, independent investigations and human rights groups.

The UAE’s business in Sudan

Perfectly aware of the RSF’s violent tactics, the UAE has backed the brutal militia, by providing weapons and equipment, since the very beginning. And despite report after report documenting mass killings and war crimes over the past two years, the Emiratis have stayed the course.

The UAE has multiple reasons to be vying for Sudan. To start, it is a proxy battle for control with Saudi Arabia. The broader political impetus is to advance the aims of the Gulf’s master in Washington, which is still another manifestation of Emirati support for the Greater Israel project.

Equally important is the UAE’s vested economic interest in Sudan. All of Sudanese gold — that the RSF has nearly complete control of — gets smuggled to Dubai. Aside from illicit gold trade, the Horn of Africa for the UAE has also been about seizing land and maritime access.

Link to the UAE’s Islamic finance industry

The UAE has long hoped to establish itself as a global hub for Islamic finance. Some of the most established Islamic financial institutions do, in fact, hail from there. These same institutions, however, have been facilitating resource theft and genocide.

Major Emirati banks, like Abu Dhabi Islamic Bank and Dubai Islamic Bank, which have been active in Sudan for decades, alongside other Gulf entities, are servicing the murderous RSF, for laundering illegal gold money but not only.

In this post — the only one on Tayyib Finance in which I discussed an Emirati stock — a Malaysian Islamic bank was presented as an alternative:

Link to the UAE’s state-linked firms

Of course, it is not only Emirati financial institutions that are involved with Sudan. Businesses spanning from agriculture to logistics to construction are implicated in potentially corrupt, illegal or unethical management of Sudanese national assets.

Now, a dozen or so UAE-based companies on official sanction lists are private entities. But transparency on ownership and related parties is so poor that verifying if listed Emirati firms​ have any links to sanctioned individuals is nearly impossible.

And since more than half of all public companies in the UAE have a Shariah-compliant status, Muslim investors would do well to exercise a degree caution when looking for Emirati stocks to buy.

Particularly prominent among blue-chips are state or ruling dynasty linked corporations, like Emirates Telecommunications Group and International Holding Company. These could be exposed via non-listed subsidiaries or joint ventures.

Avoid (among others): Largest Listed Shariah-Compliant GLCs

1. International Holding Company (ADX:IHC; Investments)

2. Abu Dhabi National Energy Company (ADX:TAQA; Utilities)

3. ADNOC Gas (ADX:ADNOCGAS; Energy)

4. Emirates Telecommunications Group (ADX:EAND; Telecommunications)

5. Alpha Dhabi Holding (ADX:ALPHADHABI; Industrial)

6. ADNOC Drilling Company (ADX:ADNOCDRILL; Energy)

7. Borouge (ADX:BOROUGE; Chemicals)

8. Aldar Properties (ADX:ALDAR; Real estate);

9. ADNOC Distribution (ADX:ADNOCDIST; Fuel retail)

10. ADNOC Logistics & Services (ADX:ADNOCLS; Maritime logistics)

Takeaway

Start with the obvious: eliminate stocks with any business at all in gold supply chains, ports and logistics (which includes different Emirati airlines). Even exposure to Sudanese agriculture should be considered suspect. Plus, all companies with majority state ownership must be avoided, simply by the unfortunate virtue of being controlled by a morally corrupt government.

Let’s not forget that the UAE was part of the Saudi-led and US-backed coalition that devastated Yemen. Incidentally, the RSF mercenaries were sent to fight in Yemen courtesy of the UAE. Meanwhile, the Emirati normalisation with Israel is going from strength to strength, encompassing everything from trade and investments, to military ties, to tourism.

There is no doubt that among purportedly Muslim nations, the UAE is one the foremost traitors to ummatic causes — from Yemen to Palestine to Sudan. In the same breath, however, it lays claim to worldwide leadership in Islamic finance. Thankfully, their duplicity has never been more apparent. Muslim investors beware.

Looking for Islamically ethical investment options? Read on:

• Ethically, it prevents exploitative wealth transfers.

• Economically, it supports shared-risk structures rather than fixed-claim debt.

• Politically, it challenges debt dependence that roots global power imbalances.

All three matter particularly for Muslims living in the West — the birthplace of the interest-based capitalist system. Committing to Islamic finance, therefore, is not only a religious duty but communal responsibility before the ummah which has invariably suffered the most from western imperialist aggression.

Against Conventional Loans

Interest-bearing financing undermines economic security by creating cycles of dependency:

• A homeowner, who obtains a conventional mortgage, takes on the entirety of the risk alone since interest must be paid even if income falls.

• A student, who takes an interest-bearing loan for education, may face uncertain job prospects and thus be forced into sacrifices or secondary debt.

• An entrepreneur, who borrows with interest, must meet fixed repayments regardless of performance which reduces business confidence and risk appetite.

By avoiding interest-bearing debt, Muslims can build more resilient personal and business finances, avoid debt dependency and promote sustainable ownership.

Checklist for Islamic Loans

1. Research halal financing options – Look for asset-backed contracts, profit-sharing models, lease-to-own structures.

2. Review contract terms – Ensure no fixed interest is charged, risk is shared, asset usage is clear.

3. Monitor current debt obligations – Refinance or exit interest-bearing contracts when feasible.

4. Consider community initiatives – Explore pooling resources, cooperative finance models, local halal lending circles.

5. Consult a qualified Shariah scholar or Islamic finance advisor when in doubt.

Halal Financing Options in the USA

• UIF Corporation – Islamic home financing via gradual joint asset buy-out.

• Guidance Residential – Halal mortgages using a lease-to-own structure.

• Ameen Housing – Shariah-compliant real estate investment trust (REIT).

Note: Availability may differ by state, and there may be waitlists or capacity limits.

Frequently Asked Questions

Does halal financing always cost more?
A: Not necessarily. But since structures are more complex and providers smaller, upfront fees or mark-ups can be slightly higher.

When halal financing isn’t available in my state, can I use conventional?
A: Permitted by some as last resort; but minimise interest and plan to transition.

How can I verify a lender’s Shariah compliance?
A: Ask for Shariah certification, audited contracts and independent reviews.

What if I took an interest-bearing loan before knowing it was haram?
A: Consult a qualified scholar, make an intention to exit and avoid in the future.

Will choosing halal financing really make a difference in the big picture?
A: Absolutely. On an individual level, you align with Islamic ethics; collectively, it shifts capital away from exploitative debt systems and supports Muslim economic autonomy.

Disclaimer: All content on Tayyib Academy is for educational and informational purposes only and does not constitute financial or Islamic legal advice.

Definition of riba

Riba is the unjustified increase in a loan or similar exchanges. Classical scholars identified:

• Riba al-nasi’ah: an increment for time in a loan;

• Riba al-fadl: an excess in a barter of ribawi items (like gold).

The Qur’an condemns consuming riba and contrasts it with trade, directing finance to real activity and shared risk, not guaranteed gains from money-for-money lending.

Mapping riba to modern bank interest

Most conventional deposit accounts are technically loans from the customer to the bank that earn a fixed, predetermined return. That in essence is riba al-nasi’ah. Some argue that bank interest is not riba, citing inflation adjustments or administrative fees or even the nature of modern money. But these are unsupported minority views; mainstream scholars treat standard interest as prohibited riba.

Risk-sharing vs. fixed claims

Islamic finance ties lawful profit to bearing risk and owning/trading real assets. Partnership modes (mudarabah, musharakah) share profit and loss. Trade and leasing modes (murabahah, ijarah) link returns to asset ownership and usufruct (right to use another’s property). Riba screens in Islamic banking arise from this principle: profit should be earned through value creation and risk, instead of a guaranteed premium.

Power, capitalism and concentrated control

Modern capitalism has set the basis for centralisation of power in banks and corporations. When debt is the primary engine of money creation, the capitalist entities are able to:

• Lock in gains through fixed claims, while forcing business risk in its entirety onto borrowers.

• Consolidate wealth through debt cycles and collateral demands that put households and smaller firms at a disadvantage.

• Shape markets and policy, effectively rendering society captive to systemic debt obligations and periodic crises.

Defenders of interest-based systems counter that interest coordinates time preferences and prices risk for efficient capital allocation. Islamic ethics reframes the debate: align returns with real activity and shared risk in order to temper power imbalances.

FAQ

• Is paying interest haram? In theory, it is forbidden to both accept and pay riba. Jurists do take into account some hardship scenarios but under strict conditions.

• Is a savings account haram? If it is a deposit with guaranteed returns, scholars classify the increment as riba. Products without fixed interest are different.

• Do Islamic banks charge interest? Islamic financial institutions avoid interest by structuring profit via trade, leasing or partnership contracts.

Takeaway

Predetermined, guaranteed returns on loans are riba al-nasi’ah; therefore, interest is forbidden in Islam. Beyond personal ethics, the framework challenges power concentration in debt-driven capitalist systems by rooting profit in real assets and shared risk.

Interested in discovering how these principles inform halal investing? Explore Tayyib Finance:

Tayyib Finance

Tayyib Finance delivers faith-centred insights on the financial challenges facing the Ummah — from ethical investing to systemic injustice — while guiding Muslims toward halal investments.

By Gulzhan Musaeva

One attractive angles lies in the country’s nickel sector that has just overtaken coal as the top export earner. Vertical integration efforts, started not long ago, have hit the mark: Indonesia now controls 60% of worldwide supply of the mineral critical in energy transition and particularly the production of electric car batteries.

This piece considers five Indonesian stocks, drawn from local Islamic indices, that sit in or adjacent to the nickel-to-EV value chain. A twofold assessment — for a tayyib fit (i.e. environmental and social conduct) in addition to basic Shariah screening — reveals credible Shariah credentials but vastly different tayyib profiles.​

Vale Indonesia (INCO)

Vale Indonesia is a pure-play nickel producer supplying critical inputs for EV batteries and a veteran constituent of the domestic Shariah index. As a listed entity, the company fulfils basic sustainability reporting requirements.

• Tayyib screening: Greenwashing
  INCO may pass nominal Shariah and ESG criteria, but its activities have been responsible for systematic environmental destruction and community displacement — leading to blacklisting by 48 institutional investors.​

Aneka Tambang (ANTM)

Aneka Tambang is a large diversified state-linked miner with major nickel operations and downstream ambitions. It has been one of the top movers in the Indonesia Sharia Stock Index (ISSI.JK) rally this year.

• Tayyib screening: Mixed signals
  ANTM has achieved some environmental recognition and put in the work to reduce greenhouse gas emissions. But recent enforcement resulted in restrictions on its nickel operations due to environmental violations.​

Trimegah Bangun Persada (Harita Nickel, NCKL)

Harita Nickel is a high-profile producer of mixed hydroxide precipitate used in nickel-rich EV batteries. A top holding in Indonesian Islamic funds, the group has public ESG claims including an S&P Global Corporate Sustainability Assessment score.

• Tayyib screening: Repeat offender
  NCKL’s Obi Island operations represent perhaps the most egregious case of ESG violations in this cohort. Leaked documents spanning a decade reveal systematic pollution of the Kawasi community and medical complications as a direct result.​

Merdeka Copper Gold (MDKA)

Merdeka Copper Gold offers copper and nickel exposure — the two metals most leveraged to electrification and EVs — and has featured consistently in the Jakarta Islamic Index universe.

• Tayyib screening: Governance risks
  MDKA’s complex organisational structure spanning battery materials, copper and gold across jurisdictions makes governance oversight challenging, although overall ESG impact is more limited compared to nickel giants.​

Mitratel (Dayamitra Telekomunikasi, MTEL)

Mitratel is an operator of telecom towers — a critical asset supporting in the energy transition both smart grids and EV charging. Its asset-light Shariah-compliant business model makes it popular among local Islamic mutual funds.

• Tayyib screening: ESG exception
  MTEL is the clear ESG leader in this group. As a passive tower infrastructure operator, it contributes to the energy transition without the social and environmental costs of mining operations.

Looking for more Asia ex-GCC halal investment options? Read this:

Financial Performance Overview

The financial data reveals stark disparities across this halal-screened cohort.

• NCKL leads in profitability with 18% ROE and 24% net margin, reflecting its lucrative nickel processing operations.

• ANTM posted impressive 69% revenue growth in 2024, though modest 5% net margins are typical of diversified mining operations.

• MTEL stands out with an exceptional 83% EBITDA margin, characteristic of asset-light tower infrastructure.​

• At the other extreme, MDKA made a net loss of $56m in 2024 despite 31% growth in revenue, given the capital-intensive nature of its expansion phase.

• INCO shows concerning trends with declining earnings (-3% annually) and modest 1.7% ROE despite its dominant nickel market position.​

Takeaway 1: Tayyib Investment Recommendations

AVOID: Vale Indonesia (INCO) and Trimegah Bangun Persada (NCKL)
Despite formal Shariah compliance and satisfactory financial performance, both companies are responsible for ESG offences whose scale and frequency make investing in them incompatible with ethical Islamic finance principles.

CAUTION: Aneka Tambang (ANTM) and Merdeka Copper Gold (MDKA)
Both require close monitoring: ANTM shows mixed environmental performance which could improve with better oversight; MDKA’s financial stress exacerbates governance risks. Neither should exceed small portfolio weightings.

CONSIDER: Mitratel (MTEL)
MTEL is the only name in this cohort that passes both Shariah and genuine tayyib screening. Strong financial metrics, minimal environmental impact and transparent governance make it suitable as a core holding in a halal EV-adjacent portfolio.

Takeaway 2: Lessons for Tayyib Investing

This review exposes the fundamental gap between basic Shariah compliance (focused primarily on debt ratios and prohibited sectors) and comprehensive tayyib screening that incorporates ESG substance. Three out of five companies with clear halal credentials — INCO, NCKL and partially ANTM — engage in practices that violate the broader ethical framework that should guide Muslim investment decisions.

For genuine tayyib investing — be it in Indonesia’s nickel-to-EV supply chain or whatever else — Muslim investors must look beyond compliance labels to examine actual ethical performance and exclude any complicit companies. The financial attractiveness of stocks alone cannot justify supporting what violates foundational Islamic principles of stewardship and avoiding harm.

Disclaimer: Nothing you read on Tayyib Finance constitutes financial advice. There is no guarantee of Shariah compliance of any particular stock at any particular time, since ‘Shariah compliance’ is fluid depending on the provider of judicial opinion and must be regularly affirmed. Similarly, there is no assurance that the same stock is simultaneously ‘tayyib’ (or Islamically ethical). Do your own research.

Shariah investing foundations

• Ownership and activity: Stocks reflect partial ownership. If core activities are haram — like alcohol, gambling, entertainment, pork or interest-based banking — then owning those shares is impermissible. This is the first screen.

• Riba, gharar, maysir: These prohibited elements guide the structure and conduct of halal investing. Riba cautions against extracting returns without risk-sharing; gharar against excessive ambiguity; and maysir against speculation.

• Financial purity screens: Even permissible businesses may earn incidental interest or have interest-bearing debt. Shariah standards set ratio thresholds to limit such exposure.

• Purification: If a Shariah compliant company has minor non-compliant income, the impure portion is identified and directed to charity. This process thus “cleanses” returns.

• Trading vs. investing: Scholars distinguish productive investing from speculative behavior. Short-term trading that resembles betting, excessive leverage or uncovered short-selling raises concerns.

• Governance: Shariah Supervisory Boards review methods, approve holdings and audit compliance for Islamic indices, funds and exchanges.

For practical guidance on halal investment options across different geographies, explore Tayyib Finance:

Tayyib Finance

Tayyib Finance delivers faith-centred insights on the financial challenges facing the Ummah — from ethical investing to systemic injustice — while guiding Muslims toward halal investments.

By Gulzhan Musaeva

How this fits common questions

• Are stocks haram? Not inherently; permissibility depends on the company’s core activity and financial ratios. The majority permit buying equities with screens and regular oversight.

• Is the stock exchange halal? The exchange is a marketplace; the halal status hinges on what is traded and on the contractual rules applied.

• Is trading stocks haram? Trading that resembles gambling, relies on excessive leverage or uses impermissible derivatives is problematic; disciplined, asset-based participation is favoured.

• Are dividends halal? Dividends from compliant companies are permissible, with purification applied to any impure portion.

• Are mutual funds halal in Islam? Islamic investment funds that apply Shariah screens, ratio limits and purification under scholarly oversight are.

• Are stock options halal? Opinions differ. Many scholars view conventional options as problematic due to gharar and lack of tangible subject matter, while some allow limited hedging via alternative, asset-based structures.

• What about a halal hedge fund? In theory, a fund could pursue risk-managed strategies if it avoids interest-based borrowing, impermissible short-selling and speculative derivatives, replacing them with compliant, asset-backed tools.

Takeaway

Muslims’ distrust in investing is understandable. After all, modern finance is part and parcel of (supposedly) advanced capitalist societies mired in greed and inequity. The development of Islamic finance though has made it possible for practicing Muslims to participate in selected investment structures without sacrificing Islamic values. The system is far from perfect, but it must nonetheless be supported by Muslim investors of all sizes, with an ultimate aim of increasing the collective power of our community.

What is Shariah compliant investing?

Shariah compliant investing is an approach to investing that aligns with Islamic law by avoiding interest (riba), excessive uncertainty (gharar) and gambling (maysir), while prioritising ethical, asset-backed activity. In simple terms, it filters where money comes from and how returns are generated so they remain halal (permissible) and avoid haram (prohibited) elements.

Core Shariah investment prohibitions

• Riba is interest or usury which is prohibited since it involves earning a return without sharing business risk.

• Gharar refers to excessive uncertainty or ambiguity. Transactions should have clear terms, known assets as well as defined rights and obligations.

• Maysir is gambling or speculation. Structures that resemble pure betting, zero-sum games or highly speculative behavior are avoided.

Businesses whose core activities are thus haram — interest-based finance and gambling but also pork, alcohol and entertainment — must be excluded.

Core Shariah investment principles

• Asset-backing and real economy: Returns should ideally be linked to tangible assets or services for productive value creation.

• Risk-sharing: Islamic contracts should distribute risk and reward fairly between parties to reflect justice and partnership.

How Shariah compliance is assessed

Shariah screening typically happens in two layers:

• Qualitative screens: Exclude prohibited businesses; review non-core activities of permissible companies for non-compliant income.

• Quantitative screens: Apply financial ratio limits for interest-based debt, interest income and liquidity.

For actionable advice and to see how Shariah investment principles are applied in practice, explore Tayyib Finance:

Tayyib Finance

Tayyib Finance delivers faith-centred insights on the financial challenges facing the Ummah — from ethical investing to systemic injustice — while guiding Muslims toward halal investments.

By Gulzhan Musaeva

How Shariah compliance is maintained

Oversight is provided by a Shariah Supervisory Board — scholars who review methodologies, approve holdings and conduct periodic audits. If a small amount of non-compliant income seeps in, the theory of purification requires that portion to be channelled to charity to cleanse returns.

FAQs

• What is the difference between Shariah investment and ethical investing?

  Ethical screens can be broad and subjective, while Shariah compliance is grounded in more specific Islamic legal rulings.

  Tayyib — as in Tayyib Finance — is the ultimate conception of Shariah investing that incorporates broader social and environmental principles. Unfortunately, at this point Islamic finance as an industry is yet to reach that level of moral conscientiousness.

• Why can two Shariah compliant portfolios look different?

  Different scholars may subscribe to slightly different standards (where there is room for interpretation), leading to varied but equally valid portfolios.

• Do Shariah screens change over time?

  Yes. Ratios, interpretations and sector assessments can evolve as markets and scholarly consensus develop.

Takeaway

Shariah compliant investing rests on timeless principles which in practice are operationalised through sector exclusions, financial ratio screens, independent scholarly oversight and purification of incidental income. However, for true integrity with the Shariah, Islamic finance must be eventually expanded to factor in major issues affecting the Muslim ummah.

Where reinvigorated AI sentiment made an even greater impact is Hong Kong whose Hang Seng Tech Index was recently propelled to its highest level in four years. Putting the spotlight on AI are tech leaders Alibaba, Tencent and Baidu, but also more unlikely challengers like Xiaomi.

To be sure, Xiaomi is an established smartphone manufacturer, currently number two in the world. It is making headlines, though, for its latest venture: electric vehicles. Muslim investors should take note of this high-flying halal stock.

Xiaomi Corporation (HKEX:1810) (OTC:XIACF)

Xiaomi’s first model, SU7 sedan, released just a year ago, caused a stir in the intensely crowded Chinese EV space. Part of the reason may be bold design inside and out, but more than that. Brand trust, ecosystem integration and competitive pricing have helped the newcomer stand out.

Not only has Xiaomi carved out a place for itself among local EV makers, like BYD, Nio, Xpeng and Li Auto, it is also competing head on with Tesla: its SU7 outselling Model 3 in the Chinese market and newly released YU7 crossover, with over 200,000 preorders, fast approaching Model Y levels.

I wrote about BYD versus Tesla exactly a year ago. Since then, the former definitively overtook the latter as the top EV player globally:

Growth: multifaceted

Xiaomi, of course, is pushing hard in its main electronics business as well. Forecasts for 2025 include smartphone shipments growing at 4-7% and their selling prices rising by 3-5%. The Internet-of-Things segment is expected to add over 30% in revenue and 2 percentage points in margin. On the retail side, the company is spreading out, targeting 20,000 Mi Home stores in China by the end of the year and 30,000 in the longer term.

The EV business has been so far loss-making but that is about to change and pretty soon. Xiaomi forecasts the new segment, which has delivered an estimated 300,000 cars to date, to be profitable by second half of the year. The same model of expansion will be applied to overseas markets as well — first and foremost, Southeast Asia, Africa, Latin America and then Europe.

Importantly, much of Xiaomi’s strategy — especially the broad Human x Car x Home ecosystem strategy — is underpinned by AI. R&D spending is being doubled over the next five years, and at least a quarter of it will go to AI development, specifically large language models and intelligent driving systems.

Risks: inconsequential

Tariffs imposed by the US and trade restrictions of different sorts in the EU are some of the impediments to overseas expansion, especially as far as Europe is concerned. But I do not think these external headwinds are going to hold Xiaomi or any of the other tech giants in China back in a significant way. I covered the reasons here:

Xiaomi the carmaker is still figuring out things production wise. However, despite long waiting times, customer interest has not waned. In the meantime, more models (including an extended range electric vehicle slated for next year) are in the works, though price wars between Chinese EV firms is a running concern.

Takeaway

Xiaomi has been able to craft a truly unique product experience by bringing vehicles into its existing smartphone and smart home device ecosystem. On top of that, the company is trying to up the game through ‘premiumisation’ of its lineup — yet another reason to believe it will continue taking share in China (and beyond in future) from top brands like Apple and Tesla.

It helps that China is becoming ever more self-reliant from a technological standpoint. Given the western bloc’s unrelenting Sinophobic protectionism, the government is fostering conditions for a closed loop system in AI software and semiconductor manufacturing, going as far as barring the testing of foreign chips (like Nvidia’s latest RTX Pro 6000D designed specially for the Chinese market).

Valuation wise, Xiaomi surely looks expensive. Its price-to-earnings ratio of 36x is twice that of the peer average. It is not surprising since the stock ran up 185% in the last 12 months and almost 500% in the last five years. The movement, however, is volatile, so there may be opportunities in the future to buy lower. Plus, growth prospects are solid — for both profit and cash flows — so the valuation should continue to climb.

In sum, it is worth keeping tabs on Xiaomi. For Muslim and all ethical investors at large, companies like Xiaomi — leading-edge Asian businesses from emerging economies — are a much safer bet on secular growth in technology than most US neoimperialist corporations.

Disclaimer: Nothing you read on Tayyib Finance constitutes financial advice. There is no guarantee of Shariah compliance of any particular stock at any particular time, since ‘Shariah compliance’ is fluid depending on the provider of judicial opinion and must be regularly affirmed. Similarly, there is no assurance that the same stock is simultaneously ‘tayyib’ (or Islamically ethical). Do your own research.

Across regions, as inflation moderates and signs of economic weakness persist, central banks are starting to reduce interest rates in hopes of reigniting growth and riding out trade uncertainty. This bodes well for a broad spectrum of industries, some more than others.

Rising investor confidence has already resulted in stock market gains. In this post, I am looking at a selection of tayyib stocks — that are both halal and sustainable (ethically and environmentally) — from two major Southeast Asian economies, Malaysia and Singapore.

In Malaysia, the benchmark rate was cut by 25 basis points in July to 2.75%, for the first time since 2020. Singapore has also eased monetary policy in 2025, the first such move in five years, though it was done through exchange-rate rather than interest-rate targeting.

Technology

Tech stocks tend to be prime beneficiaries of a low-interest rate environment as capital for innovation becomes more affordable and future earnings more valuable in the present. For Muslim investors who do not wish to buy into companies implicated in wrongdoing, it is best to avoid multinational tech conglomerates and focus on regional stocks.

Here are a few tayyib opportunities in Technology:

Property

Cheaper credit means greater property acquisition and development activity, which, in turn, means higher profitability for property stocks, including real estate investment trusts. REITs are a great option for dividend investors in particular. Malaysian REITs were previously covered here and here, along with a Singaporean REIT in focus.

These are some examples of halal REITs from Southeast Asia:

Consumer

The consumer sector will benefit from higher retail borrowing and spending that lower rates encourage. Below is a selection of halal stocks representing consumer discretionary companies specifically:

Finance

Banks and other lenders may see increased lending activity; in that sense, it is worth considering financial stocks as well. Between the two countries though, there is only one publicly listed full-fledged Islamic bank:

Takeaway

Many a Muslim investor become bothered upon learning that Islamic finance is so intimately connected to riba, or interest. It would be wrong, however, to wholly reject what this (imperfect) Shariah-based system offers in terms of alternatives to conventional financial products. After all, the ummah is in need of every avenue of strengthening itself for the sake of its weakest members, the oppressed peoples. Hence monitoring economic events and translating them into money-making opportunities, in a tayyib way, is a matter of great consequence as far as financially capable believers are concerned.

Disclaimer: Nothing you read on Tayyib Finance constitutes financial advice. There is no guarantee of Shariah compliance of any particular stock at any particular time, since ‘Shariah compliance’ is fluid depending on the provider of judicial opinion and must be regularly affirmed. Similarly, there is no assurance that the same stock is simultaneously ‘tayyib’ (or Islamically ethical). Do your own research.

Are you familiar with the above stocks or already hold any of them?

America’s overt and covert operations to subdue the global order, run non-stop since the middle of the last century, have culminated in complicity in the ongoing genocide committed by Israel in Palestine. On top of this, the US administration continues to terrorise the rest of the world into submission through wars, withdrawal of aid, sanctions and tariffs.

Such imperialistic bullying, however, is no longer effective. As the US slides further and further into functional disrepair, there has been a lot of talk about the end of American exceptionalism. Investors are moving out of US equity markets, which this year have underperformed global peers by the widest margin since 1987.

The market rotation has so far favoured the EU where grand spending plans on defence and infrastructure have buoyed shares lately. I would argue, though, that real potential lies beyond Europe’s shores — in Asia, primarily China and Southeast Asia. It is these markets that are growing sustainably, as they should given their historical and human riches.

Retail investors who are brave enough to stick with promising international markets will eventually win. Muslim investors should be among the first to abandon the Western playbook.

China

By now, it has become abundantly clear that the US empire’s perpetually belligerent attitude towards China, the world’s top economy by real GDP, is nothing more than a wary fear and a sense of inferiority. Chinese tech, in particular, is challenging the American leadership, catching up rapidly and impressively despite a multitude of sanctions and bans. Importantly, government policy has turned fully supportive of the tech industry.

There are historical precedents that point to the possibility of Chinese stocks’ continued outperformance. The Chinese stock market is not just about fresh momentum but also attractive pricing. Undervaluation is still prevalent, especially when compared to prohibitively priced US equities.

For Muslim investors looking for halal stocks, China has plenty of offer. A number of China-focused Islamic indices, such as the MSCI China A Onshore Islamic Index and the Dow Jones Islamic Market China A 100 Index, contain ready shortlists of Shariah compliant stocks. Big names, like Alibaba and BYD, have been previously covered on Tayyib Finance.

Southeast Asia

The other sub-region Tayyib Finance regularly features is Southeast Asia. And for a good reason. It is home to major emerging economies — from Indonesia to Vietnam — that are growing briskly thanks to vast human potential, resources as well as tech enterprises. Their stock markets are active and regulated.

Yet Southeast Asia remains overlooked. Muslim investors, unless they are from the area, are mostly unaware of buying opportunities here. Not even prominent halal investing sites cover the local stock markets, despite the fact that they are chock-full of Shariah compliant companies.

It is notable that Shariah compliance screening in few large markets around Southeast Asia is formally conducted by stock exchange authorities. That includes, first and foremost, Malaysia — the global hub for Islamic finance — where the Shariah Advisory Council of the Securities Commission is in charge of screening stocks on Bursa Malaysia.

The other big market for halal investments is Indonesia whose exchange contains a segment known as IDX Islamic made up exclusively of compliant stocks. The Philippines is another ASEAN country that formally screens all of its listed companies for Shariah compliance using the services of IdealRatings based on the AAOIFI’s methodology.

Between these three countries, there are over 1,500 halal stocks at present. Most are in Malaysia: as of May 2025, 850 out of 1,056 securities are compliant, or 80% of all listed entities. Indonesia is fast converting: more than 90% of Indonesia’s equity market is now Shariah compliant which yields 614 halal stocks. The Philippines offers a much smaller but growing pool of Islamic securities — 53 as of March this year.

There are alternatives elsewhere too, notably Singapore and Thailand. Although in those jurisdictions Shariah screening is not yet a formal, national process, it is adequately taken care of by third-party providers such as FTSE and S&P.

Developed Asia

Of course, Asia is not limited to emerging economies. And on Tayyib Finance one other sub-region I like to look at is East Asia — Japan and Taiwan. For halal stocks in these countries, one has to browse through Islamic indices that focus on them or contain them as part of regional indices (like FTSE SGX Asia Shariah 100).

For Japan, these include MSCI Japan Islamic, FTSE Japan 100 Shariah, S&P Japan 500 Shariah and DJ Islamic Market Japan. In Taiwan, the options are FTSE TWSE Taiwan Shariah and DJ Islamic Market Greater China.

Takeaway

Thanks to the a rich variety of Islamic equity indices covering Asian markets, individually or thematically, it has become much easier to find prospective halal buys in the region. That is true for anyone interested in China, the developed Asia as well as Southeast Asia. Exposure to the latter is also facilitated through big Islamic markets in Malaysia and Indonesia.

Obviously, responsible investors, Muslims among them, have to filter their lists through additional criteria, to ensure businesses they are buying are not involved in human rights violations or environmental degradation. Asian companies are not as egregious as many Western firms, but there are exceptions to every rule.

Disclaimer: Nothing you read on Tayyib Finance constitutes financial advice. There is no guarantee of Shariah compliance of any particular stock at any particular time, since ‘Shariah compliance’ is fluid depending on the provider of judicial opinion and must be regularly affirmed. Similarly, there is no assurance that the same stock is simultaneously ‘tayyib’ (or Islamically ethical). Do your own research.

But when governments fail to act, people really need to step up.

Consider the case of Malaysia's Sime Darby that makes over a third of its revenue from distributing Caterpillar’s murder machines, long used by the Israeli military against the civilian population in both Gaza and the West Bank. The enduring relationship with the criminal American corporation has not faltered even through the height of Israel’s genocidal mission since late 2023.

Muslim investors, in Malaysia and elsewhere, are under a moral obligation to divest from Sime Darby, a purportedly halal stock. There are plenty of genuinely tayyib alternatives that are untainted by complicity in Israel’s crimes against humanity.

‘Halal’ only in name: Sime Darby Berhad

With a market cap of USD2.7bn, Sime Darby (KLSE:SIME) is one of Malaysia’s largest consumer conglomerates. Its biggest and most consequential Industrial segment contributes close to half of the group revenue (45% of USD10.7bn in FY2024). And that is precisely the business that distributes the culpable Caterpillar equipment across Asia Pacific.

Even as Caterpillar (NYSE:CAT) faces weakening demand and eroding margins amid growing competition, Sime Darby remains a devoted ally. Not only that: the criminal association has recently expanded, with a buyout of Cavpower in Australia in 2023. Though this has not helped reverse the negative trend in Sime Darby’s own performance.

Divestment imperative

Civil societies like BDS Malaysia have been calling on Permodalan Nasional Berhad (PNB), a state-owned fund manager and the biggest shareholder in Sime Darby with a 44% stake, to break the unethical partnership. So far, those pleas have fallen on deaf ears.

What then conscionable people ought to do? If you are a consumer based in Southeast Asia, you can avoid buying the brands Sime Darby represents. These happen to include Hyundai whose heavy machinery has been used by Israel in house demolitions and destruction of agriculture and water structures throughout occupied Palestine.

If you are an investor, take a page from institutions, like Norway’s KLP Pension Fund, that have divested from Caterpillar and other complicit companies. Retail investors hold 16.3% of Sime Darby’s shares, altogether valued at USD440mn. It may not seem like much but it sends a message — that the public does not wish to profit from violence and occupation. Such individual initiative just might spur PNB to action.

Tayyib alternatives

Thankfully, the Malaysian stock market — 80% of which is Shariah compliant — has loads more to offer to Muslim investors. The table below is made up of prominent growth and dividend plays from sectors that correspond to Sime Darby’s past and current businesses, namely Industrials, Materials, Construction, Infrastructure and Automotive.

• Press Metal Aluminium Holdings is Southeast Asia’s largest aluminium smelter and a leading industrial materials company in Malaysia. It achieved a record net profit of MYR1.76bn (up 45%) in 2024 and continued to grow in 1Q 2025 (13%). Dividend yield is modest at 1.6%, but there is a track record of increasing payouts.

• Gamuda Bhd is one of Malaysia’s foremost infrastructure groups, with a record-high order book of MYR30bn and significant overseas exposure. In the most recent quarter, revenue jumped 47% year-on-year, driven by strong construction activity both locally and abroad. Dividend yield is a stable 2.7%.

• IJM Corporation Bhd is a top-tier diversified group in Malaysia with operations in property, industry and ports. Profit before tax nearly doubled and revenue went up 30% in FY2024, thanks to a healthy order book and strong performance from the industry division. Dividend is a solid 3.3%.

• Sunway Construction Group Bhd is a big pure-play construction company. The group posted record-high revenue and profit before tax in FY2024, with revenue up 28% and profit before tax 53%, reflecting robust performance across segments. Dividend is small but steady.

• Bermaz Auto Bhd is an automotive distributor in Malaysia, best known for Mazda, Kia and Peugeot. For the six months ended October 2024, revenue and profit before tax declined by 28% and 41% respectively, due to increased competition, but the company has maintained very high dividends.

• MBM Resources Bhd is a key automotive group and the main listed proxy for Perodua, Malaysia’s top-selling car brand. In 2024, it reported steady revenue growth and improved profitability, outperforming the industry’s total vehicle sales growth. Dividend yield is a generous 7.9%.

• Hong Leong Industries Bhd is a major player in Malaysia’s automotive sector, specifically in Yamaha motorcycles and auto parts. Despite a 9% drop in FY2024 revenue due to softer motorcycle demand, profit before tax rose 29% owing to a better sales mix and operational efficiency. Total dividend yielded 4.6%.

• DRB-HICOM Bhd is a diversified conglomerate and the controlling shareholder of Proton, Malaysia’s original national car maker. In FY2024, its revenue rose 2%, but net profit fell sharply due to higher costs and lower auto margins. With new Proton EV launches, the group remains optimistic about its automotive business.

Muslim investors all of sizes must join the divestment movement against zionist Israel and contribute to BDS becoming a powerful force for justice, in Palestine and beyond. Making investment returns in tayyib ways is perfectly possible and the only acceptable option. Willing silence in support of the indefensible status quo is not.