Halal Energy Stocks
Oil, gas, and renewable energy companies. The energy sector is generally permissible in Islamic finance as it deals with tangible assets and essential commodities. However, financial ratio screening is important as some energy companies carry significant debt.
13
Compliant
5
Non-Compliant
2
Needs Review
Energy Shariah Compliance Results
20 stocks screened against AAOIFI 30/30/5 standards.
| Symbol | Company | Status |
|---|---|---|
| XOM | ExxonMobil Holdings Corporation | Compliant |
| CVX | Chevron Corporation | Compliant |
| COP | ConocoPhillips | Compliant |
| EOG | EOG Resources, Inc. | Compliant |
| SLB | SLB N.V. | Compliant |
| MPC | Marathon Petroleum Corporation | Compliant |
| PSX | Phillips 66 | Compliant |
| VLO | Valero Energy Corporation | Compliant |
| OXY | Occidental Petroleum Corporation | Compliant |
| PXD | PXD | Needs Review |
| HES | HES | Needs Review |
| DVN | Devon Energy Corporation | Compliant |
| FANG | Diamondback Energy, Inc. | Compliant |
| HAL | Halliburton Company | Non-Compliant |
| BKR | Baker Hughes Company | Non-Compliant |
| SHEL.L | Shell plc | Non-Compliant |
| BP.L | BP p.l.c. | Non-Compliant |
| ENB.TO | Enbridge Inc. | Non-Compliant |
| SU.TO | Suncor Energy Inc. | Compliant |
| CNQ.TO | Canadian Natural Resources Limited | Compliant |
Frequently Asked Questions
Which Energy stocks are halal?
Based on AAOIFI 30/30/5 screening, 13 out of 20 screened Energy stocks are currently Shariah compliant. Compliance status is updated regularly as new financial data becomes available. Use the table above to see the full breakdown of compliant, non-compliant, and needs-review stocks.
Is the Energy sector halal to invest in?
The Energy & Oil sector is not inherently halal or haram as a whole. Each company must be individually screened against Shariah compliance standards. Some Energy companies pass all AAOIFI criteria while others fail due to excessive debt, cash holdings, or non-permissible income. Always screen individual stocks before investing.
What is the AAOIFI 30/30/5 screening standard?
The AAOIFI 30/30/5 standard is the most widely adopted Shariah screening methodology. It requires: (1) the company does not primarily operate in haram industries, (2) interest-bearing debt is below 30% of market capitalization, (3) cash and interest-bearing securities are below 30% of market cap, and (4) non-permissible income is below 5% of total revenue. A stock must pass all four criteria to be considered Shariah compliant.
Can a Energy stock's halal status change?
Yes. Shariah compliance status can change every quarter when companies release new financial data. Changes in debt levels, cash holdings, or revenue composition can push a stock above or below the AAOIFI thresholds. Halalytic uses the latest available financial data so you always see the current compliance status. We recommend checking compliance regularly, especially after earnings reports.
Do I need to pay zakat on Energy stocks?
Yes. If you hold stocks for investment (not just for day trading), you must pay zakat of 2.5% on the market value of your holdings once they exceed the nisab threshold and have been held for one full lunar year (hawl). Use the Halalytic Zakat Calculator to determine your exact zakat obligation on stock holdings.
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Good to know: Compliance status can change as new company data becomes available. For important decisions, we recommend checking the current data and confirming the result with a qualified Shariah adviser.
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