Best Halal Investment Options For 2025: Full Guide

Investing in line with Islamic finance values plays a crucial role for Muslims who want to grow their wealth in an ethical manner. Halal investing stays within the boundaries of Shariah law by avoiding riba (interest), gharar (excessive uncertainty), and prohibited industries such as alcohol, gambling, and pork-based businesses. This article presents the best halal investment ideas for 2025, focusing on realistic and responsible methods for building long-term financial stability. It also highlights some of the best halal investment options available today, offering practical insights that align with both faith and financial goals.

Best halal investment options for 2025

Best halal investment options

The goal of halal investments is not solely profit but also value-based wealth creation. Shariah-compliant investments emphasize transparency, fairness, and social responsibility. By aligning with Islamic investments, Muslim investors can pursue financial success while adhering to their ethical values. This involves avoiding prohibited activities, promoting responsible investment practices, and ensuring that financial endeavors align with the moral and ethical principles of Islam.

Shariah-compliant stocks

Shariah-compliant investments allow individuals to grow wealth while adhering to Islamic principles. In this category, stocks would be from companies that avoid prohibited activities such as interest-based services, gambling, and alcohol. Financial ratios are evaluated to ensure minimal debt and limited interest income. Platforms like Islamicly or Zoya assist investors in identifying and tracking these stocks. Notable Shariah investments include companies like Apple and NVIDIA, which meet stringent ethical and financial standards.

While halal dividend stocks may be invested in, special caution is required when trying to pick halal penny stocks. Regular monitoring and consulting with Islamic finance experts help maintain adherence to Shariah guidelines.

Halal stocks (stocks in companies that avoid prohibited income sources) are among the best halal investments:

Islamic mutual funds and ETFs

Islamic mutual funds and Exchange-Traded Funds (ETFs) offer investors diversified portfolios that adhere to Shariah principles. These funds invest in assets that avoid prohibited industries such as alcohol, gambling, and interest-based financial services. Examples of top halal ETFs and index funds include the iShares MSCI World Islamic ETF, providing exposure to global developed markets, and the Wahed FTSE USA Shariah ETF, focusing on U.S. equities that meet Shariah standards. Investing in such halal mutual funds allows for diversification and professional management while ensuring alignment with Islamic ethics.

Halal cryptocurrencies

While the permissibility of crypto remains debated, many scholars now consider some of them as halal investment options when used for utility rather than speculation. Examples of top halal cryptocurrencies as per Shariah scholars include:

• Bitcoin (BTC) – A decentralized digital asset seen as digital gold, free from interest (riba) and used for value storage.

• Ethereum (ETH) – A smart contract platform; its permissibility depends on use cases that align with Shariah ethics.

• Stellar (XLM) – Designed for cross-border payments and financial inclusion without speculative intent.

• Cardano (ADA) – Built on academic research, focusing on transparent, real-world applications in identity and education.

• Polygon (MATIC) – A scaling solution for Ethereum that supports Shariah-compliant decentralized finance (DeFi) tools.

• Algorand (ALGO) – An energy-efficient blockchain used in CBDCs and tokenization, with ethical institutional applications.

This list only features big names in the crypto space, but that is understandable as small projects or meme coins need higher scrutiny from an ethical standpoint.

Sukuk (Islamic bonds)

Sukuk, often referred to as Islamic bonds, are financial instruments that comply with Islamic law (Sharia). Unlike conventional bonds, Sukuk are asset-backed and do not pay interest. These are popular halal investments for fixed income. This structure ensures that returns are generated from actual economic activities rather than interest payments, aligning with the prohibition of riba (interest) in Islamic finance. Investors receive income derived from the performance of the underlying assets, making Sukuk a popular choice for those seeking Shariah-compliant investments.

Real estate

Real estate offers stability and is one of the most renowned sharia law investments if structured properly, such as avoiding interest-based mortgages. Real Estate Investment Trusts (REITs) also qualify under certain Shariah screening. Direct ownership allows investors to buy residential or commercial properties and earn income through leasing. Islamic REITs provide a way to invest in a diversified property portfolio without direct management. These REITs ensure that properties and their income sources follow Shariah guidelines, making them suitable for investors seeking ethical muslim investments.

Precious metals

Investing in commodities and precious metals like gold and silver is considered halal, as these assets are tangible and inflation-resistant. They serve as a hedge against inflation and currency fluctuations, offering portfolio diversification. Physical ownership, such as bullion or coins, is preferred to ensure compliance with Islamic principles. However, it's important to avoid derivative products or interest-bearing instruments linked to precious metals, as they may not align with Shariah guidelines.

Prices are indicative as of April 2025 and can vary based on dealer margins and spot market fluctuations.

Halal investment apps

Halal investment apps assist investors in managing portfolios according to Islamic principles. These apps offer Shariah-compliant investments in stocks, mutual funds, and ETFs, ensuring investments steer clear of prohibited industries like alcohol, gambling, and pork. Apps like Zoya and Wahed provide Shariah-compliant investments at your fingertips, allowing easy filtering of Islamic investments in stocks, ETFs, and Sukuk. These platforms support Muslim investors in making ethical financial choices.

Key principles of halal investing

Halal investing isn’t just about avoiding alcohol or gambling stocks. It’s a deeper mindset rooted in ethics, transparency, and purpose that many beginners overlook.

• Focus on tangible assets and real services. Halal investing should support businesses that do actual work, not just move money around.

• Avoid passive income that looks a lot like earning interest under a new name. Just because it’s called “dividend” or “staking reward” doesn’t always mean it’s halal.

• Time your exit with purpose. Islam doesn’t stop you from making profit, but selling just to chase the latest hype without real reason can feel off-track.

• Filter through your values, not just screens. Shariah-compliance tools help, but you should also ask if this investment actually helps people and solves a real problem.

• Zakat strategy matters. Knowing how zakat fits into your investments makes your money part of your faith, not just your income.

• Don’t ignore peer-based models. Platforms like crowdfunding or musharakah let you put your money into real businesses run by Muslims with ethics, creating access to genuine investments.

• Prioritize long-term barakah over short-term wins. The best Islamic way to invest money is calm, careful, and built for barakah over time, not quick gains.

• Real halal investing answers a deeper question. If you ever wond er what is the best halal investment, start by asking: does this bring benefit without causing harm?

In the table below, we have mentioned the top brokers that offer Islamic accounts with support for a wide range of assets. You may compare them and choose any to trade with if deemed fit:

Risks and warnings

The best halal investments are still subject to market risk. Avoid relying solely on third-party ratings. Do personal due diligence to confirm compliance with Islamic investments. One big concern is the limited number of Shariah-compliant assets available. This limited choice can make it harder to spread out investments, leading to a risk of bigger ups and downs in value. Muslim investors should avoid putting too much into one type of asset or industry, as this could make their investments more sensitive to market changes.

Another point to watch out for is depending on outside services to check if investments meet Shariah standards. While these services can be helpful, they aren't always perfect, and each may have different rules. It's important for investors to double-check compliance themselves and dig deeper into the business practices of the companies they’re investing in. This hands-on approach helps keep investments in line with Islamic values and avoids accidental involvement in restricted activities.

Regional halal investment options

Halal investing opportunities vary across different regions depending on local regulations, platforms, and products.

Explore our localized guides to find the best halal investment options tailored to your country:

• UK

• USA

• Canada

• UAE

• Malaysia

• Pakistan

• India

• Germany

• South Africa

• Australia

• Bangladesh

• Singapore

Halal equity crowdfunding and tokenized real estate are redefining ethical investing in 2025

Anastasiia Chabaniuk Author, Financial Expert at Traders Union

If you're looking to grow your money the halal way in 2025, forget the usual advice about sticking only to ETFs or sukuk. A powerful yet often ignored route is equity crowdfunding in startups that actually follow Islamic principles. Think halal-friendly fintechs, food ventures, or sustainable businesses. You’re not just betting on a stock. You’re supporting something meaningful from the ground up. And the best part? You can start small and still be part of something big, something that aligns with both your values and your goals.

Here’s something even fewer people talk about. Owning real estate without taking a loan is now possible through platforms that tokenize property ownership in a fully Shariah-compliant way. You get a share of the rent and the asset itself without touching interest or unclear contracts. Just make sure the platform is clear about who’s on the Shariah board and how the deal works. It’s a way to earn and grow that feels right, inside and out.

Conclusion

Halal investment options in 2025 offer ethical paths to wealth-building. By following Shariah compliant investments and avoiding riba and haram sectors, you can invest confidently and faithfully. As with any investment, it’s important to conduct thorough research, diversify, and consult with Islamic finance experts to ensure compliance and mitigate risks. By doing so, halal investing becomes not just a way to grow wealth but a means to live in harmony with one’s beliefs while achieving long-term financial security.

FAQs

Related Articles

Sukuk Bonds: A Shariah-Compliant Alternative To Conventional Bonds

Alamin Morshed

2 days ago

What Is Green Sukuk and Why It Matters In Islamic Finance?

Alamin Morshed

2 days ago

Understanding Ijarah In Islamic Finance

Alamin Morshed

2 days ago

Investment Linked Takaful: Halal Investing With Protection

Alamin Morshed

2 days ago

Halal Gold ETFs: Understanding Shariah Compliance In Gold ETF Investments

Alamin Morshed

2 days ago

Team that worked on the article

Alamin Morshed

Contributor

Alamin Morshed is a contributor at Traders Union. He specializes in writing articles for businesses that want to improve their Google search rankings to compete with their competition. With expertise in search engine optimization (SEO) and content marketing, he ensures his work is both informative and impactful.

Learn about our editorial policies

Chinmay Soni

Developmental English Editor

Chinmay Soni is a financial analyst with more than 5 years of experience in working with stocks, Forex, derivatives, and other assets. As a founder of a boutique research firm and an active researcher, he covers various industries and fields, providing insights backed by statistical data. He is also an educator in the field of finance and technology.

As an author for Traders Union, he contributes his deep analytical insights on various topics, taking into account various aspects.

Mirjan Hipolito

Cryptocurrency and stock expert

Mirjan Hipolito is a journalist and news editor at Traders Union. She is an expert crypto writer with five years of experience in the financial markets. Her specialties are daily market news, price predictions, and Initial Coin Offerings (ICO).

Glossary for novice traders

Bitcoin

Bitcoin is a decentralized digital cryptocurrency that was created in 2009 by an anonymous individual or group using the pseudonym Satoshi Nakamoto. It operates on a technology called blockchain, which is a distributed ledger that records all transactions across a network of computers.

Diversification

Diversification is an investment strategy that involves spreading investments across different asset classes, industries, and geographic regions to reduce overall risk.

Investor

An investor is an individual, who invests money in an asset with the expectation that its value would appreciate in the future. The asset can be anything, including a bond, debenture, mutual fund, equity, gold, silver, exchange-traded funds (ETFs), and real-estate property.

Cryptocurrency

Cryptocurrency is a type of digital or virtual currency that relies on cryptography for security. Unlike traditional currencies issued by governments (fiat currencies), cryptocurrencies operate on decentralized networks, typically based on blockchain technology.

Robo-Advisor

A Robo-Advisor is a digital platform using automated algorithms to provide investment advice and manage portfolios on behalf of clients, often with lower fees than traditional advisors.