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Is ABBV (AbbVie Inc.) Halal or Haram?

New York Stock ExchangeHealthcareDrug Manufacturers - General$401.05B2026-02-25
ABBV is Halal4/4 screens passed

AbbVie demonstrates strong Shariah compliance under AA OIFI standards, comfortably passing all financial thresholds. Its debt-to-market cap ratio sits at a healthy 17.2 %, well below the 33% limit, and notably, the company reported negligible interest income relative to its total revenue.

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Shariah Screening Details for ABBV

Business Activity

Permissible

Abb Vie passes the business activity screen as its core revenue comes from permissible pharmaceuticals like Humira, Skyrizi, and Rinvoq, with no significant involvement in prohibited industries.

Debt / Market Cap

17.22%

Debt: $69.07BThreshold: ≤33%

Interest Income

0.00%

Interest: $0Threshold: ≤5%

Cash & Securities

1.31%

Cash: $5.26BThreshold: ≤33%

About AbbVie Inc. (ABBV)

AbbVie Inc. is a global biopharmaceutical giant focused on developing advanced therapies for complex medical conditions. Its portfolio is anchored by blockbuster immunology drugs like Humira, Skyrizi, and Rinvoq, alongside significant oncology treatments such as Imbruvica and Venclexta. The company has successfully transitioned from relying solely on Humira to a diversified pipeline addressing autoimmune diseases, oncology, and virology.

For Muslim investors, AbbVie represents a compliant investment opportunity, having passed all four AAOIFI screening criteria. The company's core business of manufacturing life-saving medication is inherently permissible (Halal), and it does not derive revenue from prohibited activities like alcohol, gambling, or conventional banking. This makes it a straightforward 'Pass' for those building a Shariah-compliant portfolio.

Financially, Abb Vie maintains a clean profile for Islamic screening purposes. Its interest-bearing debt relative to its market capitalization is 17.2 %, which provides a comfortable buffer against the 33% maximum threshold. Furthermore, the company's cash and interest -bearing securities account for only 1.3% of its market cap, indicating efficient capital deployment rather than hoarding cash in interest- earning accounts.

Investors should continue to monitor the company's acquisition strategy, as large pharmaceutical mergers are often funded through debt. While current levels are compliant, significant future borrowing to fund pipeline expansion or buyouts could impact the debt- to-market cap ratio. However, at present, AbbVie remains a robust and compliant choice within the healthcare sector.

CEO

Scott T. Reents

Employees

55,000

IPO Date

2013-01-02

Headquarters

North Chicago, IL, US

ABBV Key Financial Statistics

Revenue

$61.16B

Net Income

$4.23B

EPS (Diluted)

$2.36

Stock Price

226.92

Beta

0.33

52-Week Range

164.39-244.81

Total Debt

$69.07B

Total Equity

$-3.27B

Current Ratio

0.67

ABBV Financial Health & Profitability

Profit Margins

Gross Margin83.7%
Operating Margin34.7%
Net Margin6.9%

Revenue Growth (YoY)

+8.6%

Prior year: $56.33B

Net Debt

$63.84B

Cash: $5.23B — Debt: $69.07B

R&D Spending

$9.10B

% of Revenue

14.9%

Frequently Asked Questions About ABBV

Is ABBV (AbbVie Inc.) stock halal to invest in?
Based on our AAOIFI-standard shariah screening, ABBV is Halal and considered permissible for Muslim investors. It passed all 4 of 4 compliance screens including business activity review, debt-to-market-cap ratio (17.22% vs ≤33% threshold), interest income ratio (0.00% vs ≤5% threshold), and cash & securities ratio (1.31% vs ≤33% threshold).
What does AbbVie Inc. do?
AbbVie Inc. is a global biopharmaceutical giant focused on developing advanced therapies for complex medical conditions. Its portfolio is anchored by blockbuster immunology drugs like Humira, Skyrizi, and Rinvoq, alongside significant oncology treatments such as Imbruvica and Venclexta. The company has successfully transitioned from relying solely on Humira to a diversified pipeline addressing autoimmune diseases, oncology, and virology. For Muslim investors, AbbVie represents a compliant investment opportunity, having passed all four AAOIFI screening criteria. The company's core business of manufacturing life-saving medication is inherently permissible (Halal), and it does not derive revenue from prohibited activities like alcohol, gambling, or conventional banking. This makes it a straightforward 'Pass' for those building a Shariah-compliant portfolio. Financially, Abb Vie maintains a clean profile for Islamic screening purposes. Its interest-bearing debt relative to its market capitalization is 17.2 %, which provides a comfortable buffer against the 33% maximum threshold. Furthermore, the company's cash and interest -bearing securities account for only 1.3% of its market cap, indicating efficient capital deployment rather than hoarding cash in interest- earning accounts. Investors should continue to monitor the company's acquisition strategy, as large pharmaceutical mergers are often funded through debt. While current levels are compliant, significant future borrowing to fund pipeline expansion or buyouts could impact the debt- to-market cap ratio. However, at present, AbbVie remains a robust and compliant choice within the healthcare sector. AbbVie Inc. operates in the Healthcare sector under the Drug Manufacturers - General industry and is headquartered in North Chicago, IL, US. The company is led by CEO Scott T. Reents and employs approximately 55,000 people.
What screening criteria were used for ABBV?
ABBV 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. ABBV passed 4 of these 4 screens.
Does ABBV require income purification?
ABBV has negligible interest income, so purification may not be necessary. However, it is always advisable to consult a qualified scholar regarding your specific investment situation.
When was ABBV last screened?
ABBV was last screened on 2026-02-25. 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.

Disclaimer

This shariah compliance assessment for ABBV (AbbVie Inc.) is provided for informational purposes only and does not constitute financial, investment, or religious advice. Screening criteria are based on widely accepted AAOIFI standards, but individual scholars may differ in their opinions. Always consult with a qualified Islamic scholar and licensed financial advisor before making investment decisions. Past screening status does not guarantee future compliance. Last screened: 2026-02-25.

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