Shariah Tenant Screener
Evaluate a commercial property's rent roll to determine if the asset passes the primary screening criteria for Shariah-compliant investment.
Identify Non-Compliant Tenant Exposure
Enter the area or revenue generated by tenants engaged primarily in impermissible activities (e.g., conventional banking, alcohol sales, gambling, adult entertainment, pork products).
The impermissible tenant concentration is below the standard 5% scholarly threshold. The asset generally passes the primary qualitative screen. (Note: Impermissible income must typically be purified/donated).
The impermissible tenant concentration exceeds the standard 5% scholarly threshold. The asset is generally considered non-compliant and unsuitable for investment.
Scholarly Guidelines (The 5% Rule)
- While investing in 100% permissible activities is ideal, contemporary Islamic finance scholars (such as AAOIFI) recognize the difficulty in mixed-use commercial real estate.
- The Threshold: A common standard allows investment if the income derived from impermissible (Haram) activities does not exceed 5% of the total gross income of the property.
- Purification: Any income generated from that non-compliant portion must be calculated exactly and given away to charity (purified) without any expectation of reward.
- Disclaimer: This tool provides a basic screen. Final compliance requires review by a qualified Shariah supervisory board.