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20 Halal Stocks in Saudi Arabia: Opportunities in a Shariah-Compliant Market

Disclaimer: Please be advised that the information provided in this article is relevant as of the time of its composition. However, it is important to recognize that due to the periodic release of new financial reports on a quarterly basis, the status of the mentioned stocks may undergo changes. Therefore, readers are encouraged to exercise diligence and consult updated financial information before making any investment decisions.

Are you looking to invest in a market that aligns with your values? Explore the top 20 halal stocks in Saudi Arabia, where ethical principles meet financial growth. Let’s explore Shariah-compliant opportunities that promise both integrity and profit.

Expand your portfolio with detailed insights into Saudi Arabia’s halal stocks. Click the button to access exclusive information and take your Shariah-compliant investment strategy to the next level.

 

List of 20 Halal Stocks in Saudi Arabia

Company Name Ticker Market CapShariah-Compliance Status Halal Ranking
Dr Sulaiman Al Habib Medical Services Group Company SJSC4013.SRSAR102.83BHalal ★ ★ ★ ☆ ☆
Leejam Sports Company SJSC1830.SRSAR11.75BHalal ★ ★ ★ ★ ★
Arabian Centres Company SJSC4321.SRSAR9.64BHalal ★ ★ ★ ★ ★
Al-Dawaa Medical Services Co4163.SRSAR7.48BHalal ★ ★ ★ ★ ☆
Almunajem Foods Company SJSC4162.SRSAR6.46BHalal ★ ★ ★ ★ ☆
Alkhorayef Water and Power Technologies Company SCJSC2081.SRSAR6.39BHalal ★ ★ ★ ☆ ☆
Retal Urban Development Company SJSC4322.SRSAR5.20BHalal
★ ★ ★ ★ ☆
Perfect Presentation for Commercial Services Company SJSC7204.SRSAR4.43BHalal★ ★ ★ ★ ☆
Al-Saif Stores for Development & Investment Company SJSC4192.SRSAR3.32BHalal★ ★ ★ ★ ☆
Ladun Investment Company SCJSC9535.SRSAR3.00BHalal★ ★ ★ ★ ☆
Maharah for Human Resources Company SJSC1831.SRSAR2.73BHalal★ ★ ★ ★ ★
Tanmiah Food Company SJSC2281.SRSAR2.37BHalal★ ★ ★ ★ ☆
Al Rajhi REIT4340.SRSAR2.29BHalal ★ ★ ★ ★ ★
Jadwa REIT Saudi Fund4342.SRSAR2.20BHalal ★ ★ ★ ★ ★
Sumou Real Estate Company SJSC4323.SRSAR2.08BHalal★ ★ ★ ★ ☆
Balady Poultry Trading Company CJSC9559.SRSAR1.97BHalal★ ★ ★ ★ ☆
Nayifat Finance Co4081.SRSAR1.55BHalal★ ★ ★ ★ ☆
Obeikan Glass Company SJSC9531.SRSAR1.54BHalal★ ★ ★ ★ ☆
Bonyan REIT Fund4347.SRSAR1.54BHalal★ ★ ★ ★ ★
SHL Finance Company SJSC1183.SRSAR1.52BHalal★ ★ ★ ★ ☆
Source: Musaffa Platform, July 2024

What Does Halal Ranking Mean?

Musaffa uses the AAOIFI (Accounting and Auditing Organization for Islamic Financial Institutions) method to screen stocks for Shariah compliance. Our analysts review all available information like annual and quarterly reports, company websites, presentations, and press releases to give a full analysis of each company.

Stocks that follow Shariah rules are ranked from 1 to 5, with 1 being the lowest compliance and 5 the highest. This ranking helps Muslim investors make informed decisions.

A higher rating means stronger adherence to Shariah principles, giving investors more confidence that the stock will stay halal. A lower rating suggests that the stock might become non-halal if the company’s finances change.

Latest Developments in Islamic Finance and Halal Investing in Saudi Arabia

Saudi Arabia continues to strengthen its position as a global leader in Islamic finance, driven by innovative strategies and a robust banking system.

  1. Growth in Islamic Finance: Saudi Arabia’s Islamic finance sector is forecasted to grow significantly, underpinned by the Kingdom’s strong banking system. The industry is expected to see around 10% growth in 2024, fueled by innovative financial products like sukuk (Islamic bonds) despite global economic uncertainties. The Saudi Central Bank (SAMA) has played a crucial role in this expansion, with Islamic financial assets in the Kingdom exceeding $830 billion​.
  2. Vision 2030 and Economic Diversification: Saudi Arabia’s Vision 2030 emphasizes economic diversification, with Islamic finance being a key pillar. The Kingdom has focused on developing its Islamic finance sector through initiatives like the IFN KSA Dialogues. These dialogues bring together industry leaders to discuss trends and opportunities in Shariah-compliant finance, including funding for clean energy projects and digitalization of financial services​.
  3. Innovative Financial Instruments: The Saudi government has been active in issuing new sukuk to support economic growth. Notable examples include the second round of the Sah savings sukuk and major sukuk offerings by financial institutions like Alinma Bank, which recently completed a $1 billion sukuk issuance. These initiatives are part of a broader strategy to enhance the competitiveness and appeal of Islamic financial products​.
  4. Islamic Fintech Development: Saudi Arabia is also fostering a thriving Islamic fintech sector. The central bank has licensed multiple fintech companies offering Shariah-compliant solutions, highlighting the Kingdom’s commitment to integrating modern technology with traditional Islamic financial principles. This blend of innovation and adherence to Shariah law positions Saudi Arabia as a leader in the global Islamic fintech landscape​.

These efforts reflect Saudi Arabia’s strategic focus on expanding its Islamic finance and halal investment sectors, ensuring they contribute significantly to the Kingdom’s economic goals while adhering to Islamic principles.

Source: Arab News

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