What is Magic Software Enterprises Ltd.'s Shariah compliance score?

Magic Software Enterprises Ltd. (MGIC) has a Shariah compliance score of 77/100 (Grade: B+, Good) based on AAOIFI screening standards. Scores above 70 typically indicate strong compliance. The score factors in business activity screening and financial ratio analysis including debt levels, interest-bearing deposits, and prohibited income percentages. View the full breakdown at HalalScreener.app.

Does Magic Software Enterprises Ltd. pass AAOIFI screening?

Magic Software Enterprises Ltd. (MGIC) passes AAOIFI Shariah screening. AAOIFI requires: (1) no primary involvement in prohibited activities like alcohol, gambling, or conventional banking, (2) debt-to-market-cap below 30% (MGIC: 10.1%), (3) interest-bearing deposits below 30% (MGIC: 14.1%), and (4) prohibited income below 5% (MGIC: 0.6%). HalalScreener provides free AAOIFI screening for 10,000+ stocks at halalscreener.app.

How much purification is needed for Magic Software Enterprises Ltd. stock?

Magic Software Enterprises Ltd. (MGIC) has a non-permissible income ratio of 0.57%. Muslim investors should purify this percentage of any dividends received and capital gains realized from MGIC shares by donating it to charity. HalalScreener's purification calculator at halalscreener.app/en/purification automates this calculation using the latest financial data.

Where can I screen Magic Software Enterprises Ltd. for Shariah compliance for free?

HalalScreener (halalscreener.app) offers free Shariah compliance screening for Magic Software Enterprises Ltd. (MGIC) and 10,000+ other US-listed stocks, ETFs, and 100+ cryptocurrencies. The screening uses AAOIFI Standard No. 21 and shows all financial ratios transparently. No credit card or signup required for basic screening. HalalScreener also includes an AI Islamic Scholar for follow-up questions about MGIC's compliance across different madhabs (Hanafi, Shafi'i, Maliki, Hanbali, Ja'fari).

MGIC: Is Magic Software Enterprises Ltd. Halal?

Magic Software Enterprises Ltd.

NASDAQTechnologyIL

$17.38

+0.00%

Market Cap: 853.3M

Compliance Status

Halal

Screened on Jul 19, 2026 · AAOIFI Standard 21

B+

Good

77Score

Is Magic Software Enterprises Ltd. (MGIC) halal? Halal. Based on AAOIFI screening, Magic Software Enterprises Ltd. passes both qualitative (business activity) and quantitative (financial ratio) screens with a compliance score of 77/100 (Grade: B+).

AvoidBorderlineClean

Business activity

What the company sells is permissible.

Passed

Company debt

Well clear of the limit

How much the company borrows, compared to its total value. AAOIFI allows up to 30%.

10.1% of 30.0% limit

What this means for you

You can own MGIC

It passes both the business activity and financial ratio screens under AAOIFI Standard 21.

Purify 0.6% of your income from MGIC

That is about $0.60 of every $100 you earn from it. Donate this share to charity.

Calculate my exact amount

About Magic Software Enterprises Ltd.

Magic Software Enterprises Ltd. (MGIC) is a global technology company specializing in a diverse range of software solutions and IT services. It provides proprietary application development tools, business process integration solutions, industry-specific software, and information technology outsourcing services to clients in Israel and worldwide. The company operates through two main segments: 1. Software Services: This division is responsible for the design, marketing, sales, and ongoing support of application platforms, various software applications, and solutions for business and process integration, along with associated services. 2. IT Professional Services: This segment delivers expert IT support, encompassing services like infrastructure planning and implementation, bespoke application development, technology strategy and deployment, communication solutions, and supplementary outsourcing arrangements. Magic Software offers a robust portfolio of proprietary application platforms, including: Magic xpa: For developing and deploying enterprise-grade business applications. AppBuilder: Tailored for constructing, implementing, and maintaining high-performance, mainframe-compatible business applications. Magic xpi: Facilitates seamless application integration across systems. FactoryEye: Provides virtualization capabilities for production data. BusinessEye: An organizational business intelligence platform. Magic SmartUX: Enables the creation of cross-platform mobile business applications. Furthermore, the company delivers specialized vertical software solutions such as: Clicks: A dedicated software solution for healthcare providers. Leap: Supports various business operations and management systems. Hermes Cargo: A comprehensive package for managing air cargo ground handling operations. HR Pulse: A single-tenant Software-as-a-Service (SaaS) tool for human resources management. MBS Solution: A system for overseeing television broadcast management. Nativ: Designed for the administration of rehabilitation centers. Mobisale: Streamlines sales and distribution field activities for consumer goods manufacturers and wholesalers. Beyond its product offerings, Magic Software also provides essential support services, including software maintenance, technical assistance, training, and consulting. Originally incorporated in 1983 as Mashov Software Export (1983) Ltd., the company officially rebranded to Magic Software Enterprises Ltd. in 1991. Its corporate headquarters are situated in Or Yehuda, Israel.

Sector: Technology · Industry: Information Technology Services

Shariah Compliance Status

AAOIFI Standard 21Updated Jul 19, 2026

Compliance History

Halal, unchanged since May 2026.

No status changes recorded since we began tracking.

Tracked since May 2026. Updates automatically on each re-screen.

Fiscal: FY 2024Data source: FMP

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Frequently Asked Questions

Is Magic Software Enterprises Ltd. (MGIC) halal to invest in?

Based on AAOIFI Standard 21 screening, Magic Software Enterprises Ltd. (MGIC) is rated Halal with a compliance grade of B+ (Good). It passes both the business activity screen (no primary involvement in prohibited sectors) and the quantitative financial ratio screen (debt, interest deposits, and prohibited income all below AAOIFI thresholds).

Why did Magic Software Enterprises Ltd. get a B+ compliance rating?

Magic Software Enterprises Ltd. (MGIC) received a grade of B+ (Good) based on three AAOIFI Standard 21 financial ratios: debt-to-market-cap of 10.1% (limit 30%); interest-bearing deposits of 14.1% (limit 30%); prohibited income of 0.57% (limit 5%). The grade reflects the margin of safety across all three ratios relative to their thresholds.

What could change Magic Software Enterprises Ltd.'s Shariah verdict?

Magic Software Enterprises Ltd.'s verdict is re-evaluated at each annual re-screen. Three events could change it: (1) the debt-to-market-cap ratio crossing 30%, typically from new debt issuance or a major drop in share price; (2) interest-bearing deposits exceeding 30% of market cap; or (3) prohibited revenue (alcohol, gambling, conventional finance, etc.) exceeding 5% of total revenue. Verdict flips are tracked in the compliance history section above.

How often is Magic Software Enterprises Ltd. re-screened for Shariah compliance?

Magic Software Enterprises Ltd. (MGIC) is re-screened annually using the most recent full-year financial data from SEC filings. HalalScreener also triggers an on-demand re-screen whenever the stored data is more than 7 days old, ensuring the ratios reflect the latest available financial statements. Last screened: Jul 19, 2026.

Screened according to AAOIFI Standard No. 21 · For informational purposes only. Consult a qualified Islamic finance advisor before investing.

Disclaimer: This screening is for informational purposes only and does not constitute financial, legal, or religious advice. Compliance is evaluated using AAOIFI financial standards (debt, deposits, and prohibited income ratios) and publicly available data. Ethical, political, social, or environmental considerations are outside the scope of this screening. Individual scholars and methodologies may differ. Always consult a qualified Islamic finance advisor before making investment decisions.