Join PIF

Sharia Compliance Decision Tree

by Rakaan Kayali

September 20, 2023
1 min read

Table of Contents

Disclaimer: This post is for informational and educational purposes only, not financial or investment advice. The opinions are solely those of the author, not any organization. Consult a professional before making investment decisions, as all investments carry risk. The author is not liable for losses or damages resulting from the use of this information. Past performance does not predict future results.

I often feel there is a prevailing notion that Sharia compliance is akin to neurosurgery or rocket science in its complexity. I disagree. I think it's pretty easy to understand and comply with Sharia.

To prove this, I constructed a decision tree that hits on the main points of prohibition for Islamic business activity. I don't claim that this decision tree covers %100 of cases, but I do claim that it is more accurate than any of the Sharia boards (costing their companies millions of dollars) that have authorized things like Murabaha, Ijarah Muntahiya Bittamleek and Musharakah Mutanaqisa.

I encourage readers to let me know if they can think of a product for which the decision tree below comes out with the wrong result. Let's make this a pseudo-open source project where readers are in charge of improving the algorithm.

Sharia Compliance Decision Tree

Sharia Compliance
Sharia compliance
Start your halal investing journey with our 7-day email course

Halal Wealth Simplified

Confidently build and monitor your own Shariah-compliant investment portfolio
Follow expert halal portfolios
Real-time buy/sell prices
Exclusive, insightful content
Learn More

Comments

Leave a Reply

Your email address will not be published. Required fields are marked *

Join thousands of satisfied Muslim investors

Start your halal investing journey with our 7-day email course

Practical Islamic Halal Finance

Empowering Muslims to make smarter and effortless personal finance and  investment decisions, aligned with Islamic values.

Copyright ©2025 Practical Islamic Halal Finance
magnifiercrosschevron-down-circle