Computational Implementation of AAOIFI Standard 21 for US Public Equities: A 12,500-Stock Applied Screening Study

This paper documents the computational implementation of AAOIFI Sharia Standard No. 21 across the full US-listed equity universe of approximately 12,500 active tickers. The methodology operationalises the four canonical tests of the standard: a primary-business activity screen against an industry exclusion list, a leverage screen requiring interest-bearing debt to remain below thirty-three percent of market capitalisation, a non-permissible-income screen requiring revenue from prohibited sources to remain below five percent of total revenue, and a liquid-assets screen requiring cash and interest-bearing securities to remain below thirty-three percent of market capitalisation. We describe the data inputs sourced from Financial Modeling Prep and the United States Securities and Exchange Commission EDGAR system, the implementation choices required when canonical AAOIFI definitions interact with imperfect commercial classifications, and the ticker-level override layer used to correct industry-classifier errors. We document approximately 1,500 Sharia-compliant operating equities identified from the 12,500-ticker universe, a compliance rate of approximately 12 percent. We then compare the sector composition of the compliant cohort against the S&P 500 to characterise the structural sector tilt the screen induces, and intersect the compliant cohort with the seven-framework value-investing consensus signal documented in a companion paper to test whether Sharia constraints are in tension with quality-investing constraints. The intersection produces a smaller but materially overlapping cohort, indicating that the two screens are not mutually exclusive and that Sharia constraints are not in tension with quality-investing constraints as is sometimes assumed. The methodology and reason-coded compliance verdicts are fully documented in public source code and exposed through a public verdict API and per-ticker pages. This is a research artifact and not investment advice.