Is ARES (Ares Management Corporation) Halal or Haram?

Based on our AAOIFI-standard shariah screening, ARES is Not Halal (Haram) and is not considered permissible for Muslim investors. It failed 3 of 4 compliance screens. Ares Management Corporation's core business activity was found to be non-compliant. Its debt-to-market-cap ratio of 40.18% exceeds the ≤33% threshold. Its interest income of 10.37% exceeds the ≤5% limit.

Ares Management Corporation is a major alternative asset manager operating globally across the United States, Europe, and Asia. The company's operations span several segments, including a Tradable Credit Group managing corporate credit funds and a Direct Lending Group that provides financing solutions to small-to-medium sized companies. For Muslim investors using HalalStocks.co.uk, Ares Management Corporation is currently classified as Not Halal (Haram). The stock fails three out of the four critical AAOIFI screening criteria, meaning it is not suitable for a shariah-compliant portfolio due to its foundational involvement in interest-based financial services. From a financial perspective, the company's reliance on interest-bearing debt and revenue is highly problematic for Islamic investors. Ares carries a debt-to-market capitalization ratio of 40.2%, exceeding the 33% limit, and its interest income accounts for 10.37% of total revenue, well above the strict 5% threshold allowed by Islamic finance standards. Because Ares operates fundamentally within the conventional credit and lending space, there is no scholarly debate regarding its non-compliant status. Muslim investors should avoid this stock and instead look for asset managers that focus exclusively on equity, real estate, or Islamic finance products. Ares Management Corporation operates in the Financial Services sector under the Asset Management industry and is headquartered in Los Angeles, CA, US. The company is led by CEO Michael J. Arougheti and employs approximately 4,250 people.

ARES 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. ARES passed 1 of these 4 screens.

ARES was last screened on 2026-04-29. 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.