Is BABA (Alibaba Group Holding Limited) Halal or Haram?

Based on our AAOIFI-standard shariah screening, BABA is Not Halal (Haram) and is not considered permissible for Muslim investors. It failed 2 of 4 compliance screens. Its debt-to-market-cap ratio of 70.47% exceeds the ≤33% threshold. Its cash & securities ratio of 131.81% exceeds the ≤33% threshold.

Alibaba Group Holding Limited is a global technology powerhouse best known for dominating Chinese e-commerce through platforms like Taobao and Tmall. Beyond retail, the company operates a diverse ecosystem that includes Alibaba Cloud, the logistics network Cainiao, and digital media ventures , effectively serving as the infrastructure for commerce in China. It connects millions of merchants with consumers, handling transactions that rival the GDP of small nations. For Muslim investors using HalalStocks.co.uk, Alibaba is currently classified as Not Halal (Haram) based on AAOIFI standards. Although the core business of facilitating online trade is permissible, the company fails two critical financial screens: its interest-bearing debt and its liquidity levels are far too high relative to its market value. This means that despite the business model being acceptable, the financial engineering behind it does not meet Shariah requirements. Specifically, Alibaba's debt-to-market cap ratio sits at 70.5%, well above the 33% limit, indicating heavy reliance on leverage. Furthermore, the company holds a massive amount of cash and interest-bearing securities—131 .8% of its market cap—which violates the threshold for liquid assets. While its interest income is currently within acceptable limits (2.08%), the other financial failures are too significant to overlook. Investors should monitor Alibaba 's balance sheet for changes, particularly if its stock price recovers significantly, which would lower these ratios. However, until the company reduces its debt load or its market capitalization expands enough to dilute these percentages, it remains off-limits for strict Shariah-compliant portfolios. Alibaba Group Holding Limited operates in the Consumer Cyclical sector under the Specialty Retail industry and is headquartered in Hangzhou, CN. The company is led by CEO Yongming Wu and employs approximately 124,320 people.

BABA 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. BABA passed 2 of these 4 screens.

BABA 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.