Is ACHR (Archer Aviation Inc.) Halal or Haram?

Based on our AAOIFI-standard shariah screening, ACHR 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 (1.52% vs ≤33% threshold), interest income ratio (0.00% vs ≤5% threshold), and cash & securities ratio (16.04% vs ≤33% threshold).

Archer Aviation is a leading player in the emerging urban air mobility sector, focused on designing and manufacturing electric vertical takeoff and landing (eVT OL) aircraft. Their flagship aircraft, Midnight, is engineered to transport passengers quickly across congested cities, aiming to replace lengthy car commutes with short, sustainable flights. Based in Palo Alto, the company is positioning itself not just as a manufacturer, but as a future operator of aerial ride-sharing networks. For Muslim investors, Archer Aviation is currently classified as Halal, having passed all four AAOIFI screening metrics. The company's business activities are fully compliant, as developing transportation technology is a permissible endeavor in Islamic finance. This 'Halal' status indicates that the stock is currently safe to include in a Sh ariah-compliant portfolio without the need for purification of dividends at this stage. Financially, Archer displays a profile common to early-stage growth companies, which actually benefits its Shariah compliance status. With a debt-to-market cap ratio of only 1.5% and cash-to-market cap at 16.0%, it sits well below the 33% thresholds for both leverage and liquidity. Furthermore, because the company is in the development phase and not yet generating significant revenue from interest-bearing accounts, its interest income ratio is effectively 0.00%. Going forward, investors should monitor Archer's cash management strategies as they move toward commercialization. While they are compliant now, companies with large cash piles raised from investors sometimes park those funds in interest-bearing instruments, which could affect the interest income ratio in future quarters. However, for now, the stock remains a clean, compliant option for those interested in aerospace innovation. Archer Aviation Inc. operates in the Industrials sector under the Aerospace & Defense industry and is headquartered in San Jose, CA, US. The company is led by CEO Adam D. Goldstein and employs approximately 774 people.

ACHR 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. ACHR passed 4 of these 4 screens.

Although ACHR passes all shariah screens, it does earn $21.9M in interest income (0.00% 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 $0.00 to purify the income.

ACHR 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.