Is BARC.L (Barclays PLC) Halal or Haram?

Based on our AAOIFI-standard shariah screening, BARC.L is Not Halal (Haram) and is not considered permissible for Muslim investors. It failed 4 of 4 compliance screens. Barclays PLC's core business activity was found to be non-compliant. Its debt-to-market-cap ratio of 349.11% exceeds the ≤33% threshold. Its interest income of 71.20% exceeds the ≤5% limit. Its cash & securities ratio of 646.92% exceeds the ≤33% threshold.

Barclays PLC is a major transatlantic consumer and wholesale bank with global reach, operating primarily through its Barclays UK and Barclays International divisions. It provides a vast array of financial services including retail banking, credit cards, corporate and investment banking, and wealth management. As one of the ' Big Four' UK clearing banks, it plays a central role in the British financial system and global capital markets. For Muslim investors using HalalStocks.co.uk, Barclays is classified as Not Halal (Haram) because it fails all four AAOIFI screening criteria. The primary issue is the nature of its business; as a conventional bank, its core operations revolve around lending money at interest (riba), which is strictly prohibited in Islam. Even if the business activity were permissible, the financial ratios are disqualifying on their own merits. Financially, the company's structure is incompatible with Islamic finance standards due to extreme leverage and reliance on interest. The Debt-to-Market Cap ratio stands at a staggering 349.1%, well above the 33% limit, and its interest-bearing cash and securities represent 646.9% of its market cap. Furthermore, with 71.20% of its revenue derived from interest income, there is no possibility of 'purification' for this stock. Investors should note that there is no scholarly debate regarding conventional banks like Barclays; they are universally considered impermissible investment vehicles. Muslim investors seeking exposure to the financial sector should instead look for dedicated Islamic banks, Takaful insurance providers, or fintech companies that operate on Shariah-compliant principles. Barclays PLC operates in the Financial Services sector under the Banks - Diversified industry and is headquartered in London, GB. The company is led by CEO Coimbatore Sundararajan Venkatakrishnan and employs approximately 93,000 people.

BARC.L 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. BARC.L passed 0 of these 4 screens.

BARC.L 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.