Is ABT (Abbott Laboratories) Halal or Haram?

Based on our AAOIFI-standard shariah screening, ABT 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 (7.58% vs ≤33% threshold), interest income ratio (0.52% vs ≤5% threshold), and cash & securities ratio (4.50% vs ≤33% threshold).

Abbott Laboratories is a diversified global healthcare giant known for a wide array of life-saving technologies and products, ranging from the FreeStyle Libre glucose monitoring system to nutritional staples like Ensure and Similac. The company operates across four main segments: medical devices, diagnostics, nutritional products, and established pharmaceuticals, making it a critical player in both hospital settings and consumer healthcare shelves worldwide. For Muslim investors seeking ethical and compliant opportunities, Abbott Laboratories is currently classified as Halal, having passed all four rigorous AAOIFI screening criteria . The company's business activities are inherently permissible, focusing on health and well-being rather than prohibited industries like alcohol , gambling, or conventional finance, providing a solid foundation for a shariah-compliant portfolio. Financially, Abbott maintains a very clean balance sheet from an Islamic perspective, with interest-bearing debt accounting for only 7.6% of its market cap, significantly lower than the 33% limit allowed by scholars. Additionally, its cash and interest-bearing securities make up just 4.5% of its market value, and interest income is a minor 0.5 2% of revenue, suggesting the company is not heavily reliant on generating income from impermissible cash deposits. Investors should continue to monitor Abbott's acquisition strategy, as large healthcare mergers can sometimes alter debt ratios rapidly. However, at present , Abbott represents a stable, defensive stock option that aligns well with Islamic investing principles due to its low leverage and clearly permissible revenue streams. Abbott Laboratories operates in the Healthcare sector under the Medical - Devices industry and is headquartered in North Chicago, IL, US. The company is led by CEO Robert Ford and employs approximately 114,000 people.

ABT 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. ABT passed 4 of these 4 screens.

Although ABT passes all shariah screens, it does earn $230.0M in interest income (0.52% of revenue). Many scholars recommend purifying this portion by donating the equivalent percentage of any dividends received to charity. For example, if you receive $100 in dividends, you would donate approximately $0.52 to purify the income.

ABT was last screened on 2026-02-24. 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.