Shariah compliance refers to the adherence to Islamic law or shariah principles, particularly in finance and investment. It ensures investments align with Islamic ethical standards, excluding businesses involved in forbidden (haram) activities like alcohol, gambling, or conventional financial services, and not excessively burdened with debt. Given that many companies may have some level of involvement in haram activities, Shariah compliance serves as a guideline to help Muslims navigate the financial markets. It aims to ensure a company's core business is permissible (halal) and any haram involvement is minimal. However, these guidelines serve as a starting point, and further due diligence may be necessary based on personal beliefs and consultations with scholars or advisors.
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