Sector Compliance Breakdown
Which GICS sectors of the S&P 500 pass AAOIFI Shariah screening — compliance rates, where each sector fails (business vs financial screen), and median screening ratios per sector.
Shariah compliance rate by sector
Sector detail
| Sector | Companies | Compliant | Rate | Business fails | Financial fails | Dominant exclusion reason |
|---|---|---|---|---|---|---|
| Information Technology | 74 | 65 | 88% | 0 | 9 | Debt/mktcap 37.1% >= 33% |
| Energy | 21 | 15 | 71% | 0 | 6 | Interest/rev 5.3% >= 5% |
| Health Care | 60 | 41 | 68% | 0 | 19 | Interest/rev 7.5% >= 5% |
| Industrials | 83 | 56 | 67% | 13 | 14 | Excluded sub-sector: Aerospace & Defense |
| Materials | 25 | 16 | 64% | 0 | 9 | Debt/mktcap 76.9% >= 33% |
| Consumer Discretionary | 47 | 27 | 57% | 11 | 9 | Review sub-sector: Hotels, Resorts & Cruise Lines |
| Consumer Staples | 33 | 18 | 55% | 4 | 11 | Excluded sub-sector: Distillers & Vintners |
| Communication Services | 23 | 10 | 43% | 5 | 8 | Review sub-sector: Movies & Entertainment |
| Real Estate | 30 | 2 | 7% | 0 | 28 | Interest/rev 18.8% >= 5% |
| Utilities | 31 | 1 | 3% | 0 | 30 | Interest/rev 8.8% >= 5% |
| Financials | 76 | 0 | 0% | 76 | 0 | Excluded sector: Financials |
Median AAOIFI ratios by sector
| Sector | Debt / mkt cap (< 33%) | Receivables / mkt cap (< 49%) | Interest / revenue (< 5%) |
|---|---|---|---|
| Information Technology | 6.9% | 2.3% | 1.2% |
| Energy | 25.9% | 5.5% | 1.8% |
| Health Care | 16.8% | 5.6% | 1.7% |
| Industrials | 12.7% | 5.1% | 1.4% |
| Materials | 26.4% | 6.3% | 2.0% |
| Consumer Discretionary | 16.8% | 1.9% | 0.7% |
| Consumer Staples | 28.5% | 5.3% | 1.2% |
| Communication Services | 31.0% | 6.9% | 2.4% |
| Real Estate | 40.8% | 2.0% | 11.3% |
| Utilities | 78.9% | 6.3% | 9.2% |
| Financials | — | — | — |
Reading the breakdown
A sector can fail the screen two ways. The business screen excludes impermissible activities outright — conventional finance, alcohol, tobacco, gambling, defence — which is why Financials sit at zero regardless of their balance sheets. The financial screen applies the AAOIFI ratio thresholds to everything that survives, which is what removes capital-intensive sectors like Utilities and Real Estate (leverage) even though their business is permissible. Medians are computed over every screened company in the sector with available data.