Introduction
Saudi Arabia is the heart of the global Islamic finance industry, with a significant concentration of Islamic financial assets and the world's largest concentration of Shariah-compliant banking. The Tadawul All Share Index (TASI) is unique among major global indices: a large majority of its constituents are designed from inception to comply with Islamic finance principles. For Muslim investors anywhere in the world, the TASI is one of the most halal-friendly markets to research, with around 145 to 165 of the roughly 219 listed companies typically screened as halal on the Musaffa platform in accordance with AAOIFI Shariah screening standards as of May 2026.
This article is published by Musaffa LLC ("Musaffa"), a registered investment adviser with the U.S. Securities and Exchange Commission ("SEC"). Registration does not imply a certain level of skill or training and does not constitute an endorsement by the SEC.
IMPORTANT DISCLOSURE: The Shariah compliance screening referenced throughout this article is performed on the Musaffa platform by applying AAOIFI-adopted screening standards. Any methodologies or assessments presented are for informational purposes only and should not be relied upon as the sole basis for any investment decision. Past screening status is not indicative of future compliance status or investment performance. Saudi listed stocks carry real risks under Shariah rules and general investment principles, which are discussed further below.
What is TASI
The Tadawul All Share Index (TASI) is the benchmark stock market index of the Saudi Stock Exchange (Tadawul). It comprises all companies listed on the main market of the Saudi Exchange, which numbered approximately 219 firms as of early 2026. The index was first compiled in 1985.
The TASI is weighted by market capitalisation, with caps on the largest constituents. As of April 2026, the top three constituents by market cap are:
- Saudi Aramco (2222) with a market cap above SAR 1.7 trillion
- Al Rajhi Bank (1120)
- Saudi Arabian Mining Company (Maaden, 1211)
The Saudi market totals around SAR 9.7 trillion (roughly USD 2.6 trillion) in total market cap. The TASI50 sub-index tracks the 50 largest companies and offers a more focused view of the Saudi blue-chip universe.
Saudi Arabia opened its main stock exchange to all foreign investors in February 2026, removing the previous Qualified Foreign Investor (QFI) framework. This means individual investors and smaller institutions abroad can now trade Saudi stocks directly. The TASI is also part of major emerging market indices including MSCI Emerging Markets and FTSE Emerging Markets.
How this list was built
We used the Musaffa Stock Screener to check the Shariah compliance screening status of TASI constituents under AAOIFI Shariah screening standards as applied on the Musaffa platform.
Each stock highlighted below has been screened as halal on the Musaffa platform in accordance with AAOIFI Shariah screening standards at its most recent quarterly review. Given the size of the TASI (around 219 constituents, with the majority screening as halal), this guide focuses on a representative selection of large-cap blue-chip and well-known halal-screened names rather than an exhaustive list. Status can change every quarter, so always recheck before you invest. THIS SCREENING STATUS MAY NO LONGER BE CURRENT. Readers accessing this article after May 2026 must independently verify current Shariah compliance status directly through the Musaffa platform or another qualified source before making any investment decision. Musaffa does not undertake any obligation to update this article.
Halal blue-chip stocks in the TASI
1. Saudi Aramco (TADAWUL: 2222)
- Sector: Energy (Integrated Oil and Gas)
- Exchange: Saudi Stock Exchange (Tadawul) Main Market
Saudi Aramco is the world's largest energy company and one of the most profitable companies in the world. It is a leading force in the energy sector in Saudi Arabia and produces, refines, transports, and markets crude oil, natural gas, and petrochemicals. The company is also the parent of major downstream subsidiaries including SABIC. Saudi Aramco is the largest single weight in the TASI. Energy is a permissible business activity under AAOIFI standards. Saudi Aramco passes AAOIFI screening standards as applied on the Musaffa platform as of May 2026. This screening result reflects a point-in-time assessment and does not constitute a recommendation to invest.
2. Al Rajhi Bank (TADAWUL: 1120)
- Sector: Financials (Islamic Banking)
- Exchange: Saudi Stock Exchange (Tadawul) Main Market
Al Rajhi Bank is the world's largest Islamic bank by market capitalisation. Founded in 1957, it is a leading institution in the financial sector in Saudi Arabia and it operates entirely on Islamic banking principles, offering Shariah-compliant retail and corporate banking, financing, sukuk, takaful-aligned insurance products, and investment services. Islamic banking that operates under proper Shariah supervision passes the AAOIFI business activity screen. Al Rajhi Bank passes AAOIFI screening standards as applied on the Musaffa platform as of March 2026. This screening result reflects a point-in-time assessment and does not constitute a recommendation to invest.
3. Saudi Basic Industries Corporation (SABIC) (TADAWUL: 2010)
- Sector: Materials (Petrochemicals and Fertilizers)
- Exchange: Saudi Stock Exchange (Tadawul) Main Market
SABIC is one of the world's largest chemical companies, with operations in over 50 countries. It produces a wide range of polymers, basic chemicals, agri-nutrients, and specialty products. SABIC is now a majority-owned subsidiary of Saudi Aramco. Petrochemicals, fertilizers, and basic industrial chemicals are permissible business activities under AAOIFI standards. SABIC passes AAOIFI screening standards as applied on the Musaffa platform as of May 2026. This screening result reflects a point-in-time assessment and does not constitute a recommendation to invest.
4. Saudi Telecom Company (STC) (TADAWUL: 7010)
- Sector: Communication Services (Telecommunications)
- Exchange: Saudi Stock Exchange (Tadawul) Main Market
5. Alinma Bank (TADAWUL: 1150)
- Sector: Financials (Islamic Banking)
- Exchange: Saudi Stock Exchange (Tadawul) Main Market
Alinma Bank is one of Saudi Arabia's leading Islamic banks. The bank operates entirely on Shariah-compliant principles and is supervised by an independent Shariah Board. It provides retail banking, corporate banking, treasury services, and investment products, all structured to comply with Islamic finance rules. Islamic banking passes the AAOIFI business activity screen. Alinma Bank passes AAOIFI screening standards as applied on the Musaffa platform as of May 2026. This screening result reflects a point-in-time assessment and does not constitute a recommendation to invest.
6. Dr Sulaiman Al Habib Medical Services Group (TADAWUL: 4013)
- Sector: Healthcare (Hospitals and Medical Services)
- Exchange: Saudi Stock Exchange (Tadawul) Main Market
Dr Sulaiman Al Habib Medical Services Group, often referred to as HMG, is the largest private healthcare provider in the Middle East. It is a leading company in the healthcare sector in Saudi Arabia and operates a network of hospitals, clinics, and medical centres across Saudi Arabia and the wider GCC. Healthcare services are a permissible business activity under AAOIFI standards. HMG passes AAOIFI screening standards as applied on the Musaffa platform as of May 2026. This screening result reflects a point-in-time assessment and does not constitute a recommendation to invest.
7. Bank Albilad (TADAWUL: 1140)
- Sector: Financials (Islamic Banking)
- Exchange: Saudi Stock Exchange (Tadawul) Main Market
Bank Albilad is a full Islamic bank that operates entirely on Shariah-compliant principles. It offers retail banking, corporate banking, investment services, and money exchange services through a substantial branch network across Saudi Arabia. Islamic banking passes the AAOIFI business activity screen. Bank Albilad passes AAOIFI screening standards as applied on the Musaffa platform as of May 2026. This screening result reflects a point-in-time assessment and does not constitute a recommendation to invest.
8. Saudi Aramco Base Oil Company (Luberef) (TADAWUL: 2223)
- Sector: Energy (Base Oil and Lubricants)
- Exchange: Saudi Stock Exchange (Tadawul) Main Market
Saudi Aramco Base Oil Company, known as Luberef, is one of the world's largest producers of Group II base oils used in premium lubricants. The company is majority-owned by Saudi Aramco. Base oil production is a permissible business activity under AAOIFI standards. Luberef passes AAOIFI screening standards as applied on the Musaffa platform as of May 2026. This screening result reflects a point-in-time assessment and does not constitute a recommendation to invest.
Notable halal mid-cap names on the TASI
Beyond the blue-chip names, the TASI also includes a wide range of mid-cap companies that pass AAOIFI screening on the Musaffa platform.
9. Leejam Sports Company (TADAWUL: 1830)
- Sector: Consumer Discretionary (Fitness and Health Clubs)
- Exchange: Saudi Stock Exchange (Tadawul) Main Market
Leejam Sports operates Fitness Time, the largest fitness chain in the Middle East and North Africa, with hundreds of branches across Saudi Arabia and the wider region. Fitness services are permissible under AAOIFI standards. Leejam Sports passes AAOIFI screening standards as applied on the Musaffa platform as of May 2026. This screening result reflects a point-in-time assessment and does not constitute a recommendation to invest.
10. Arabian Centres Company (Cenomi Centers) (TADAWUL: 4321)
- Sector: Real Estate (Shopping Mall Operator)
- Exchange: Saudi Stock Exchange (Tadawul) Main Market
Cenomi Centers, formerly Arabian Centres, is the largest shopping mall owner and operator in Saudi Arabia. It owns and manages over 20 shopping malls across the kingdom. Retail real estate operations are a permissible business activity under AAOIFI standards. Cenomi Centers passes AAOIFI screening standards as applied on the Musaffa platform as of May 2026. This screening result reflects a point-in-time assessment and does not constitute a recommendation to invest.
11. Al-Dawaa Medical Services Company (TADAWUL: 4163)
- Sector: Healthcare (Pharmacy Retail)
- Exchange: Saudi Stock Exchange (Tadawul) Main Market
Al-Dawaa Medical Services is the second-largest pharmacy retail chain in Saudi Arabia. It operates more than 1,000 pharmacies and provides pharmaceutical, healthcare, and wellness products. Pharmacy retail is a permissible business activity under AAOIFI standards. Al-Dawaa passes AAOIFI screening standards as applied on the Musaffa platform as of May 2026. This screening result reflects a point-in-time assessment and does not constitute a recommendation to invest.
12. Almunajem Foods Company (TADAWUL: 4162)
- Sector: Consumer Staples (Frozen Food Distribution)
- Exchange: Saudi Stock Exchange (Tadawul) Main Market
Almunajem Foods is one of the largest frozen food and meat distributors in Saudi Arabia. The company imports, processes, and distributes frozen poultry, meat, and other food products that comply with halal food standards. Halal food distribution is a permissible business activity under AAOIFI standards. Almunajem Foods passes AAOIFI screening standards as applied on the Musaffa platform as of May 2026. This screening result reflects a point-in-time assessment and does not constitute a recommendation to invest.
13. Maharah for Human Resources Company (TADAWUL: 1831)
- Sector: Commercial Services (Human Resources)
- Exchange: Saudi Stock Exchange (Tadawul) Main Market
Maharah is one of Saudi Arabia's largest providers of recruitment and human resources services, including domestic help, hospitality staffing, and corporate workforce solutions. Recruitment and HR services are a permissible business activity under AAOIFI standards. Maharah passes AAOIFI screening standards as applied on the Musaffa platform as of May 2026. This screening result reflects a point-in-time assessment and does not constitute a recommendation to invest.
14. Tanmiah Food Company (TADAWUL: 2281)
- Sector: Consumer Staples (Poultry and Meat)
- Exchange: Saudi Stock Exchange (Tadawul) Main Market
Tanmiah Food Company is one of Saudi Arabia's largest integrated poultry producers, operating across hatchery, broiler farming, processing, and distribution. The company also produces value-added halal-certified meat products. Halal-certified food production is a permissible business activity under AAOIFI standards. Tanmiah Food passes AAOIFI screening standards as applied on the Musaffa platform as of May 2026. This screening result reflects a point-in-time assessment and does not constitute a recommendation to invest.
Notable TASI names that may not pass
Even in Saudi Arabia's predominantly Shariah-friendly market, not every listed company passes AAOIFI screening on the Musaffa platform. The most common exclusion reasons in Saudi Arabia include:
- Conventional banking and finance subsidiaries. Some Saudi banks still operate hybrid models with conventional banking products alongside Islamic banking. Saudi British Bank (SABB), Saudi Awwal Bank, Banque Saudi Fransi, and a few other partly-conventional banks may fail the AAOIFI business activity screen at certain review periods. The screening results reflect a point-in-time assessment and do not constitute an investment recommendation. Always verify the latest status.
- Conventional insurance. A handful of Saudi insurers still operate without full Takaful structures and may fail the activity screen under AAOIFI standards.
- Hotel and tourism revenue exposure. Some hotel companies have meaningful alcohol-related revenue from licensed hospitality operations abroad, which can disqualify them.
- Financial ratio breaches. Some Saudi industrials and real estate developers carry interest-bearing debt or interest-earning cash positions that exceed the AAOIFI 30 percent threshold even if their core business is permissible.
Check the most recent halal status on the Musaffa platform.
How AAOIFI screening works for Saudi stocks
AAOIFI screening combines two layers. The activity layer excludes companies whose core business is conventional banking, conventional insurance, alcohol, gambling, pork, tobacco, weapons, or adult entertainment. The financial ratio layer then checks three thresholds:
- Income from non-permissible sources stays under 5 percent of total income
- Interest-bearing debt stays under 30 percent of market capitalisation (using a 36-month average)
- Interest-bearing assets stay under 30 percent of market capitalisation
These checks are recalculated every quarter. Saudi firms file quarterly results, so status changes can happen at four reporting points per year. Saudi Arabia also has local Shariah supervisory boards at major institutions like Albilad Capital and Al Rajhi Capital that publish their own Shariah-compliance opinions, which may differ slightly from AAOIFI-based screening.
Sector view of halal TASI stocks
The halal slice of the TASI is far broader than in non-Muslim markets, covering nearly every sector of the Saudi economy.
Energy is anchored by Saudi Aramco and its downstream subsidiaries like Luberef. Saudi Aramco alone accounts for around 18 to 20 percent of TASI weight.
Islamic banking is one of the most distinctive halal-friendly sectors on the TASI. Al Rajhi Bank, Alinma Bank, and Bank Albilad operate as full Islamic banks. Saudi National Bank (SNB) operates a major Islamic banking franchise alongside its conventional book.
Materials is anchored by SABIC, Maaden, and a cluster of petrochemical and cement companies.
Healthcare has been one of the fastest-growing halal sectors on the TASI, anchored by Dr Sulaiman Al Habib Medical Services. Pharmacy chains like Nahdi Medical and Al-Dawaa also play a significant role.
Consumer staples and retail includes major halal-food and grocery chains. Tanmiah Food, Almunajem Foods, and Savola Group are key names.
Telecommunications is dominated by Saudi Telecom Company (STC), Mobily, and Zain KSA.
Real estate and REITs is well-represented, including REITs structured under Shariah-compliant rules (Sukuk-style real estate investment).
There are very few exclusions from the halal TASI universe by sector, which is structurally different from indices like the FTSE 100, CAC 40, DAX 40, or Nikkei 225.
Saudi-specific points to keep in mind
- Currency. Saudi stocks trade in Saudi riyals (SAR). The riyal has been pegged to the U.S. dollar at a fixed rate of approximately 3.75 SAR per USD since 1986. While this peg has historically removed most direct currency exchange risk for USD-based investors, investors should note that the continuation of this peg is a policy decision of the Saudi government and is subject to change. Investors should verify the current peg status and applicable exchange rates with their broker prior to investing.
- Trading week and hours. The Saudi market operates Sunday through Thursday (not Monday through Friday like Western markets), and trading hours are 10:00 to 15:00 Saudi time.
- Dividend treatment. Saudi withholding tax on dividends to foreign investors has been simplified under the post-2026 foreign-access framework. Check the latest rates with your broker.
- Foreign access. As of February 2026, all foreign investors can directly buy TASI stocks without the previous Qualified Foreign Investor (QFI) restrictions. Individual investors and smaller institutions abroad can now trade Saudi stocks directly.
- Local Shariah supervision. Many Saudi banks and asset managers publish their own Shariah opinions through internal supervisory boards. These local opinions may differ slightly from AAOIFI-based screening in some edge cases.
Risks unique to Saudi large-cap halal investing
Saudi large-cap halal investing comes with risks every Muslim investor should understand.
- Quarterly status changes. Saudi financial ratios can move on every quarterly report. Recheck the current status on the Musaffa Stock Screener that uses AAOIFI standards.
- Oil price sensitivity. Saudi Aramco and many Saudi industrials are exposed to global oil prices. A sustained drop in oil prices affects both the economy and dividend payouts.
- Vision 2030 execution risk. Saudi Arabia's Vision 2030 includes large infrastructure and giga-project investments. Execution risk and capital expenditure cycles can drive market volatility.
- Concentration in energy and financials. Saudi Aramco and the major Islamic banks together account for a large share of TASI market cap. Sector concentration is a real consideration.
- Liquidity in mid-cap names. Some mid-cap names on the TASI have lower trading volumes than equivalent US or European stocks. Bid-ask spreads can be wider.
- Foreign access and tax rules. The new foreign access framework is recent (effective February 2026), and operational details may continue to evolve.
- No promise of returns. A halal large-cap stock can still fall in price. Faith and finance are separate questions.
For investors looking for diversified Saudi exposure, halal-compliant Saudi ETFs and Sukuk-based funds may be a simpler starting point. You can also explore options on the Musaffa ETF screener.
A simple verification method for Saudi stocks
To check the halal status of any name on this list, run these five checks:
- Open the stock page on the Musaffa Stock Screener and confirm halal status as of today in accordance with AAOIFI standards.
- Read the firm's most recent quarterly financial report on the Saudi Exchange website (Tadawul) or the company's investor relations page.
- Confirm the stock is still part of the TASI main market. Some names may be on Nomu (the parallel market).
- Cross-check sector and product mix to ensure no new haram revenue lines or conventional financial activities have been added.
- Cross-reference with local Shariah opinions from Al Rajhi Capital, Albilad Capital, or similar local Shariah authorities for additional comfort.
- Set a reminder to recheck halal status every three months.
Frequently asked questions
How many TASI stocks are halal in 2026?
Approximately 145 to 165 of the roughly 219 main-market constituents are typically screened as halal on the Musaffa platform at any given quarterly review as of May 2026. The exact number can change every quarter as financial ratios shift and as new IPOs join the TASI.
Is Saudi Aramco halal?
Yes. Saudi Aramco is currently screened as halal on the Musaffa platform as of May 2026. It is the largest halal name on the TASI by market capitalisation and is a major source of dividends for Saudi and international shareholders.
Is Al Rajhi Bank halal?
Yes. Al Rajhi Bank is currently classified as halal on the Musaffa platform as of March 2026. It is the world's largest Islamic bank by market capitalisation and operates entirely on Shariah-compliant principles.
Are all Saudi banks halal?
Not all. Full Islamic banks like Al Rajhi, Alinma, and Bank Albilad pass the AAOIFI activity screen. Some Saudi banks that still operate hybrid conventional-Islamic models may fail at certain review periods. Verify each bank's latest status on the Musaffa platform.
Is the TASI itself halal?
The TASI as a full benchmark is more halal-friendly than any other major global index, with around two-thirds to three-quarters of its constituents typically passing AAOIFI screening. However, the full index still contains some companies that fail the screen, so passive TASI trackers are not automatically fully halal. Several Shariah-compliant Saudi ETFs exist that screen the universe further.
What is the Saudi Exchange's stance on Shariah compliance?
The Saudi Exchange (Tadawul) operates within a regulatory framework that supports Shariah-compliant financial products. The Capital Market Authority (CMA) has approved many Shariah-compliant ETFs, sukuk, and Islamic investment funds. Many listed companies maintain their own Shariah supervisory boards.
Can foreign investors buy Saudi stocks?
Yes. As of February 2026, Saudi Arabia eliminated the Qualified Foreign Investor (QFI) framework, allowing all foreign investors, including individuals and smaller institutions, to trade TASI stocks directly through any approved broker.
How often should I recheck my Saudi halal stocks?
At least every three months. Saudi firms file quarterly results, and financial ratios can move at each filing point.
Final takeaways
The TASI is the most halal-friendly major stock market index in the world. Saudi Arabia's regulatory framework supports Islamic finance, most major banks operate as full Islamic banks, and alcohol, gambling, and tobacco are largely absent from the listed universe. The result is that around two-thirds to three-quarters of TASI constituents typically pass AAOIFI screening on the Musaffa platform.
The halal TASI universe spans almost every sector of the Saudi economy. Saudi Aramco anchors the energy side. Al Rajhi Bank, Alinma Bank, and Bank Albilad anchor Islamic banking. SABIC and Maaden anchor materials. STC anchors telecommunications. Dr Sulaiman Al Habib and pharmacy chains anchor healthcare. A long list of mid-cap names in consumer staples, retail real estate, food production, and human resources rounds out the universe.
For Muslim investors anywhere in the world, the TASI is a natural starting point. With Saudi Arabia opening direct access to foreign investors in 2026 and Vision 2030 driving structural economic diversification, the TASI offers a Shariah-friendly equity universe at a scale not available in any other major market.
That said, halal status is not automatic, even on the TASI. The AAOIFI financial ratio screen still applies. Quarterly rechecks remain essential. And a halal stock can still lose money. Faith and finance work together in halal investing.
If this guide helped, you may also like our top halal stocks in Nasdaq 100 and our complete halal investing guide on Musaffa Academy.
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Disclaimer: The content is for educational purposes only and is not a substitute for personalized advice from Musaffa. It does not constitute fatwa, legal, or tax advice, an offer, or a solicitation to buy or sell any security or investment strategy. The information is believed reliable as of publication date but may not reflect recent changes, and Musaffa does not guarantee its accuracy, completeness, or timeliness and does not undertake any obligation to update this article. Musaffa's Shariah compliance screening is based on AAOIFI Shariah standards. Any methodologies or assessments presented are for informational purposes only and should not be relied upon as the sole basis for any investment decision. It is important to conduct your own research or consult with a financial advisor or tax professional before making any investment decisions. All investments involve risk, and the value of securities and other investments may fluctuate due to market conditions, economic factors, or other external influences. Past performance is not indicative of future results. The views expressed are those of certain Musaffa personnel as of the publication date, are for informational purposes only, and may change without notice. They may differ from views of other areas of the firm, and any forward-looking statements are not guarantees and may not come to pass. Logos, brand names and external links are used for identification only and do not imply endorsement. For additional information and statements, see our disclaimers: https://musaffa.com/disclaimer
Dilnoza Mirsaid
Nafisahon