The Short Answer
Monday.com (MNDY) is considered halal by standard Islamic screening criteria. The company operates a cloud-based work management platform with subscription revenue — an entirely permissible business model. MNDY has minimal debt, negligible interest income, and no haram revenue streams.
What Is Monday.com?
Monday.com is an Israeli-founded SaaS (Software as a Service) company that provides a Work OS — a flexible platform for teams to plan, track, and manage projects and workflows. Revenue streams include:
- Subscription Revenue (95%+): Monthly and annual SaaS subscriptions
- Professional Services (5%): Implementation, training, and consulting
The business model is straightforward — software subscriptions and services. There are no haram revenue streams involved. The platform is used across industries for project management, CRM, HR management, and software development workflows.
Sharia Financial Screening
Key financial metrics for Sharia compliance:
- Total Debt / Market Cap: ~2% ✅ (threshold: under 33%)
- Interest Income / Total Revenue: ~1.5% ✅ (threshold: under 5%)
- Haram Revenue / Total Revenue: 0% ✅
- Liquid Assets / Total Assets: Within limits ✅
Monday.com excels on financial screens. As a SaaS company with recurring revenue and minimal debt, it represents one of the cleanest types of businesses from a Sharia perspective.
Potential Concerns
1. Interest Income on Cash
Monday.com holds significant cash from operations and its IPO. Interest earned on these deposits represents about 1-2% of revenue. This requires minor dividend purification by donating an equivalent percentage of any gains to charity.
2. Clients in Haram Industries
Monday.com serves clients across all industries, including some that may operate in haram sectors (banks, alcohol companies, entertainment). However, Monday.com is a neutral technology provider — it sells project management software, not the products of its clients. Most scholars consider this permissible, similar to how an office supply company can serve any business.
3. Israeli Origins
Some Muslim investors may have personal or ethical concerns about investing in Israeli-founded companies. This is a personal decision rather than a strict Sharia compliance issue. The stock itself is listed on NASDAQ and trades as a US security.
What Islamic Scholars and Indices Say
Monday.com meets standard Sharia screening criteria:
- AAOIFI Financial Ratios — Passes all screens ✅
- Standard Sharia Debt Thresholds — Well within limits ✅
- Business Activity Screen — Fully permissible ✅
The Halal Verdict: HALAL ✅
Score: 88/100
Monday.com is an excellent Sharia-compliant stock for Muslim investors. The company:
- Has a purely permissible SaaS business model
- Carries virtually no debt
- Generates 95%+ revenue from software subscriptions
- Passes all standard Sharia financial screens easily
- Requires only minimal dividend purification (~1-2%)
SaaS companies like Monday.com are among the most straightforward halal investments in the tech sector.
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