Is MSCI (MSCI Inc.) Halal or Haram?

Based on our AAOIFI-standard shariah screening, MSCI is Not Halal (Haram) and is not considered permissible for Muslim investors. It failed 1 of 4 compliance screens. MSCI Inc.'s core business activity was found to be non-compliant.

MSCI Inc. is a leading provider of investment decision support tools, renowned globally for its market indices, analytics, and ESG research. The company licenses its indices for the creation of ETFs, mutual funds, and complex derivative products, while also offering portfolio construction and performance benchmarking tools to institutional investors worldwide. For Muslim investors, MSCI is currently classified as Not Halal (Haram) based on AAOIFI standards. While the company successfully passes all three financial ratio screens, it fails the critical business activity screen due to its deep integration with the conventional financial system, specifically through indices used to structure non-compliant derivatives and interest-based funds. From a strictly financial perspective, MSCI demonstrates strong fundamentals that easily pass Islamic financial thresholds. The company's debt-to-market cap sits comfortably at 14.6%, and its cash and securities ratio is minimal at 1.2%, with interest-bearing income making up a negligible 0.51% of total revenue. Although MSCI's financial ratios are highly compliant, the inherently non-compliant nature of providing foundational data for conventional financial markets and interest-bearing instruments prevents it from being a halal investment. Muslim investors should look toward alternative data or technology providers that do not directly facilitate conventional financial engineering. MSCI Inc. operates in the Financial Services sector under the Financial - Data & Stock Exchanges industry and is headquartered in New York City, NY, US. The company is led by CEO Henry A. Fernandez and employs approximately 6,184 people.

MSCI was screened using AAOIFI-based shariah compliance criteria. Four tests are applied: (1) Business Activity — the company's core business must not derive primary income from haram (prohibited) activities such as alcohol, gambling, tobacco, or interest-based finance. (2) Debt-to-Market-Cap — total debt must not exceed 33% of market capitalization. (3) Interest Income — interest income must not exceed 5% of total revenue. (4) Cash & Securities — cash and interest-bearing securities must not exceed 33% of market cap. MSCI passed 3 of these 4 screens.

MSCI was last screened on 2026-04-29. Shariah compliance status can change as companies report new financial data, acquire new businesses, or shift revenue streams. We recommend checking back periodically for the most up-to-date screening results.