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Written by Haider Saleem
Journalist and Political Analyst | LinkedIn / X
Using Musaffa’s Shariah compliance screening, based on the globally recognized AAOIFI standards, this article assesses Figma’s compliance across three key criteria.
1. What Does Figma Do?
Figma is a U.S.-based software platform focused on design and collaboration. Its tools allow users to prototype, test, and ship digital products – entirely in the browser. Alongside its flagship design suite, Figma also offers FigJam, a virtual whiteboard for team brainstorming.
The company earns its revenue primarily through software subscriptions, serving businesses, designers, and developers.
2. How Is Shariah Compliance Determined?
Musaffa applies the AAOIFI (Accounting and Auditing Organization for Islamic Financial Institutions) standards when evaluating stocks. To be considered halal, a company must pass three financial screens:
- Business Activity Test – Non-permissible revenue must be below 5%.
- Interest-Bearing Securities & Assets Test – Must be below 30% of market cap.
- Interest-Bearing Debt Test – Must be below 30% of market cap.
Let’s explore how Figma performs under each screen.
3. Business Activity Test – Fail
AAOIFI Threshold: Non-halal and doubtful income must be less than 5% of total revenue.
Figma earns some of its revenue from interest-based income, which disqualifies it under this test. Here’s the breakdown from Musaffa’s Shariah screening:
- Halal Sales & Income: $228.20 million
- Non-Halal Sales & Income: $16.35 million
- Total Revenue: $244.55 million
- Non-Halal Business Activity Percentage: 6.69%
The non-compliant income mainly stems from:
- Interest income: $15.53 million
- Unrealized gains on available-for-sale securities: $0.82 million
These earnings – though not core to Figma’s design business – do push it above the acceptable 5% threshold, making the stock non-compliant.
Explainer: What Is the AAOIFI 5% Rule?According to AAOIFI, if more than 5% of a company’s revenue comes from non-permissible activities, like interest, alcohol, gambling, or pork, the stock is considered not halal, even if its core business is permissible.
4. Interest-Bearing Securities and Assets – Pass
AAOIFI Threshold: Must not exceed 30% of the company’s market capitalization.
Figma’s exposure to interest-generating securities is relatively minor:
- Interest-Bearing Assets: $1.48 billion
- Market Cap: $59.41 billion
- Percentage: 2.50%
This is well below the 30% ceiling and is considered compliant.
5. Interest-Bearing Debt – Pass
AAOIFI Threshold: Interest-bearing debt must be under 30% of market capitalization.
Figma reports no interest-bearing debt:
- Short-term debt: 0.00%
- Long-term debt: 0.00%
- Total: 0.00% of market cap
From a leverage perspective, Figma passes.
6. Summary
| Shariah Screening Test | Result | ✅ / ❌ |
| Business Activity | 6.69% non-halal income | ❌ |
| Interest-Bearing Securities & Assets | 2.50% of market cap | ✅ |
| Interest-Bearing Debt | 0.00% of market cap | ✅ |
Final Verdict: ❌ Figma is not currently halal to invest in.
Even companies with ethical business models can fail Shariah screening, not because of what they sell, but because of how they manage their finances. For Figma, the key issue is not the software business itself, but the interest-based income on idle cash and investments.
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