MujtabaK/Maqasid_Based_Equity_Screener

Islamic Equities Shariah Impact Rating Methodology (Version 2) A practical framework to move from simple Shariah admissibility toward a fast, evidence-based and Maqasid-linked equity rating. Purpose. The methodology starts only after a stock has passed ordinary Shariah screening. It then ranks admissible equities by how strongly the core business advances the Maqasid al-Shariah, how central that activity is to revenue, and whether visible harms should reduce the score.

Why is this needed

• Traditional Shariah screening is binary: Halal or Haram (admissible or not). • The updated framework distinguishes between ordinary permissible businesses and businesses that clearly support life, wealth, education, food security, housing and productive livelihoods. How Maqasid enters the score • Map the main activity to the Maqsad it most clearly serves: life (nafs), wealth (mal), intellect (aql), family/social continuity (nasl). • Judge the level served: Darurat (essential protection), Hajat (hardship reduction), or Tahsinat (quality and dignity).

Methodology flow

Core score structure

Component Weight Rule of thumb Evidence Primary activity benefit 40 Map the main activity to a Maqsad; score it by level served and directness of effect. Filings, annual report Revenue concentration 25 Measure how much revenue comes from the beneficial activity. Segment reporting Inclusion/hardship removal 20 Check whether the company serves underserved users or materially reduces hardship. Customer and product profile Harm / conduct 15 Reduce or cap the score if there are material red flags around labor, environment, governance or predatory practices. Regulatory notices Practical scoring rules

1) Primary activity benefit (0–40)

• Maqasid level served: Tahsinat = 10, Hajat = 20, Darurat = 30. • Add a directness score: indirect = 0, moderate = 5, direct = 10. • Example: education may score 30; essential medicines may score 40.

2) Revenue concentration (0–25)

• <20% = 5 | 20–39% = 10 | 40–59% = 15 | 60–79% = 20 | 80%+ = 25. • If segment revenue is unclear, use a lower-confidence score and avoid the highest band on inference alone.

Score Rating Interpretation

75–100 Tahsinat High impact: the core activity strongly advances one or more Maqasid and the benefit is central to the business. 45–74 Mubah Standard impact: admissible and useful, but less essential, less direct or less inclusion-oriented. 0–44 Esasiya Basic compliance: admissible, but the direct Maqasid contribution is limited or weakened by low relevance or concerns.

Minimum data needed

• Business description and largest revenue segment • Beneficiary/customer type and one inclusion signal • One red-flag check from official or credible public sources • A confidence label: High, Medium, or Low

Data Sources

• Annual reports, statutory filings, and investor presentations for business description and segment revenue. • Stock exchange announcements and regulator notices for enforcement, governance and disclosure issues. • Public company websites and product pages to understand customer segment and inclusion relevance where filings are thin.

Bottom line. The modern methodology remains faithful to the original thesis — not all halal equities are equal — while making classification easier, faster, and more defensible.

Check out the configuration reference at https://huggingface.co/docs/hub/spaces-config-reference