The world of investing has witnessed significant changes in recent years, with investors becoming more conscious of aligning their investments with ethical standards and religious principles. Halal stocks, which adhere to Sharia law, are becoming increasingly popular as more individuals seek to invest in companies that meet both financial and moral criteria.
In 2026, the global stock market is expected to offer a range of opportunities for Sharia-compliant investment.
In this article, we will explore the best halal stocks to watch in 2026, providing you with insightful and actionable recommendations for boosting your wealth in an ethical and sustainable manner.
Whether you’re looking to diversify your halal stock portfolio or invest in long-term Sharia-compliant assets, this guide will help you navigate the growing world of Islamic finance and ethical investing.
What Are Halal Stocks and Why Should You Care?
Halal stocks refer to shares of companies that comply with Sharia law—a set of Islamic principles that govern various aspects of life, including finance and business.
These stocks are screened to ensure they meet certain criteria that align with ethical and religious standards.
Key Criteria for Halal Stocks
To be considered Sharia-compliant, companies must avoid engaging in activities or industries prohibited by Islam.
These include:
- Interest-based activities: Companies involved in banking or lending with interest (usury) are not considered halal.
- Alcohol, gambling, and tobacco: Companies that produce or deal in harmful products such as alcohol, gambling, and tobacco are excluded.
- Unethical business practices: Companies must also maintain ethical standards in their operations and financial dealings, avoiding fraudulent or exploitative practices.
Read Too : Top Halal Stocks to Invest in for Ethical Returns
The Benefits of Investing in Halal Stocks
Investing in Sharia-compliant stocks offers several benefits:
- Ethical Alignment: Investors can feel good about supporting companies that align with their moral and religious values.
- Long-term Growth: Many halal stocks are in industries focused on sustainability, making them ideal for long-term investment.
- Diversification: By investing in a halal stock portfolio, you can diversify your investments while ensuring they comply with Islamic principles.
Best Halal Stocks to Watch in 2026
The year 2025 presents unique opportunities for ethical investors looking to grow their wealth with Islamic stocks.
We’ve compiled a list of the top Sharia-compliant stocks that are poised for growth, providing investors with a diverse range of options in various sectors.
1. Saudi Aramco – The Energy Giant with Sustainable Focus
Saudi Aramco, the world’s largest and most profitable oil company, is also positioning itself as a leader in sustainable energy.
The company has started focusing on reducing its carbon footprint and investing in cleaner energy sources, making it a strong candidate for halal investments.
- Why Watch: Saudi Aramco’s commitment to reducing emissions and investing in cleaner energy makes it a good choice for ethical investors.
- Sector: Energy
- Halal Compliance: Saudi Aramco has passed the Sharia-compliant screening due to its focus on ethical energy production.
2. Al Rajhi Bank – A Leading Islamic Bank
Al Rajhi Bank, based in Saudi Arabia, is one of the largest Islamic banks globally.
The bank operates under the principles of Islamic finance and provides a range of financial services that are Sharia-compliant.
- Why Watch: Al Rajhi Bank’s steady growth in the Islamic finance sector makes it an attractive option for halal investors.
- Sector: Financial Services
- Halal Compliance: Al Rajhi Bank adheres to Sharia law, offering interest-free loans and other Sharia-compliant financial products.
Read Too : Top Halal Stocks for Profitable and Ethical Portfolios
3. Tesla – Green Halal Investment for the Future
Tesla is a major player in the electric vehicle (EV) industry, focusing on sustainable energy and reducing the global carbon footprint.
Its innovations in renewable energy and commitment to green technologies have made it an attractive option for halal investors interested in sustainable halal stocks.
- Why Watch: Tesla’s dedication to sustainability aligns with Sharia law, making it an ideal choice for ethical investing.
- Sector: Technology and Renewable Energy
- Halal Compliance: Tesla’s operations and product offerings comply with Sharia principles, focusing on eco-friendly and socially responsible innovations.
4. Sime Darby Plantation – Ethical Agriculture
Sime Darby Plantation, one of the largest palm oil producers in the world, has made significant strides toward sustainable practices and ethical production.
The company’s commitment to reducing environmental impact and ensuring fair labor practices makes it a strong contender for halal investment.
- Why Watch: Sime Darby’s ethical practices in agriculture and commitment to sustainable palm oil production make it a great option for Sharia-compliant investing.
- Sector: Agriculture
- Halal Compliance: The company’s focus on sustainability and ethical practices aligns with Sharia law.
5. Tata Consultancy Services (TCS) – Leading IT Solutions
Tata Consultancy Services is an Indian multinational information technology company that provides IT services, consulting, and business solutions.
The company adheres to ethical business practices and ensures that its operations are free from any unethical practices, making it a Sharia-compliant stock.
- Why Watch: TCS has shown consistent growth and remains one of the most ethical companies in the tech industry.
- Sector: Information Technology
- Halal Compliance: TCS is committed to ethical business practices and sustainable growth, making it a top choice for halal stock portfolios.
Read Too : Boost Your Wealth! The Best Halal Stocks to Watch in 2025
How to Build a Halal Stock Portfolio for 2026
Building a Sharia-compliant stock portfolio requires careful selection of companies that meet Islamic finance principles.
Here are some tips for creating a balanced halal investment strategy:
1. Diversify Across Sectors
Don’t put all your eggs in one basket.
Ensure your portfolio includes a variety of sectors such as energy, technology, banking, and agriculture to reduce risk and increase potential returns.
2. Focus on Sustainable and Ethical Companies
Invest in companies that prioritize sustainability and ethical practices.
These companies not only align with Sharia principles but also tend to perform well in the long term as consumers and investors increasingly favor ethical businesses.
Read Too : Beginner’s Guide to Investing in Halal Stocks: Grow Wealth the Right Way
3. Monitor Halal Stock Screening
Regularly check the Sharia compliance of the stocks in your portfolio to ensure they remain in line with Islamic finance standards.
Companies can sometimes shift their operations, and it’s important to stay informed.
Conclusion
2025 offers great opportunities for halal investors to build wealth while adhering to Sharia law.
By focusing on Sharia-compliant stocks such as Saudi Aramco, Al Rajhi Bank, and Tesla, you can create a diversified and sustainable halal stock portfolio.
Ethical investing is not only a way to stay true to your values but also a strategy for long-term financial growth.
Investing in halal stocks allows you to take advantage of the booming sectors of the future—such as renewable energy, technology, and ethical banking—while staying within the boundaries of Sharia law.
Start building your Sharia-compliant portfolio today and make a positive impact on your wealth and the world around you.
Read Too : Financial Success with Faith: Top Halal Stocks for Muslim Investors
FAQ
1. What are halal stocks?
Halal stocks are shares of companies that comply with Sharia law, which prohibits investments in businesses involved in unethical activities such as gambling, alcohol, and usury.
2. How can I find halal stocks to invest in?
You can find Sharia-compliant stocks by using halal stock screeners, which filter out companies that don’t meet Islamic finance principles.
Many brokers also offer Islamic investment options.
3. Are halal stocks a good investment?
Yes, halal stocks can be a good investment, especially in sustainable sectors like renewable energy and ethical banking.
They offer potential for long-term growth while ensuring your investments align with your values.
4. Can I invest in Tesla and other tech companies and still follow Sharia law?
Yes, Sharia law allows investment in companies like Tesla, as long as they do not engage in prohibited activities such as usury or unethical business practices.
5. How can I build a halal stock portfolio?
To build a halal stock portfolio, diversify across sectors, focus on companies that prioritize sustainability and ethical practices, and ensure all stocks are regularly screened for Sharia compliance.
