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 | 73 | 63 | 86% | 0 | 7 | Market cap unavailable |
| Materials | 25 | 18 | 72% | 0 | 7 | Debt/mktcap 70.5% >= 33% |
| Industrials | 83 | 59 | 71% | 13 | 10 | Excluded sub-sector: Aerospace & Defense |
| Energy | 21 | 14 | 67% | 0 | 7 | Interest/rev 5.3% >= 5% |
| Health Care | 59 | 39 | 66% | 0 | 18 | Market cap unavailable |
| Consumer Discretionary | 47 | 25 | 53% | 11 | 7 | Review sub-sector: Hotels, Resorts & Cruise Lines |
| Consumer Staples | 34 | 17 | 50% | 5 | 9 | Market cap unavailable |
| Communication Services | 23 | 9 | 39% | 5 | 9 | Review sub-sector: Movies & Entertainment |
| Real Estate | 31 | 3 | 10% | 0 | 28 | Interest/rev 18.8% >= 5% |
| Utilities | 31 | 2 | 6% | 0 | 29 | 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 | 6.7% | 2.2% | 1.4% |
| Materials | 20.5% | 5.6% | 2.0% |
| Industrials | 12.1% | 4.7% | 1.4% |
| Energy | 23.1% | 5.0% | 1.8% |
| Health Care | 15.3% | 5.4% | 1.6% |
| Consumer Discretionary | 13.9% | 1.7% | 0.7% |
| Consumer Staples | 26.4% | 4.1% | 1.3% |
| Communication Services | 27.7% | 9.4% | 2.4% |
| Real Estate | 36.1% | 1.8% | 11.1% |
| Utilities | 71.4% | 5.7% | 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.