Is BKR (Baker Hughes Company) Halal or Haram?

Based on our AAOIFI-standard shariah screening, BKR 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 (10.64% vs ≤33% threshold), interest income ratio (0.00% vs ≤5% threshold), and cash & securities ratio (7.38% vs ≤33% threshold).

Baker Hughes Company is a major player in the global energy sector, providing a comprehensive suite of technologies and services to the oil and gas industry. The company operates through specialized segments, offering everything from exploration and drilling fluids to advanced turbomachinery and digital solutions for industrial energy value chains. For Muslim investors, BKR represents a solid Halal investment opportunity within the energy equipment sector. The stock successfully passes all four AAOIFI screening criteria, meaning its core business activities and financial structures align perfectly with Islamic finance principles. From an Islamic finance perspective, Baker Hughes exhibits a strong balance sheet with a low debt-to-market cap ratio of 10.6%, easily clearing the strict 33% limit. Additionally, the company generates virtually zero interest income, ensuring that revenue streams remain pure and untainted by riba (usury). While the stock is currently compliant without major scholarly debate, halal investors should continue monitoring its debt levels and cash reserves in future quarterly reports. Any major acquisitions or shifts in financing strategy could impact its comfortable compliance margins. Baker Hughes Company operates in the Energy sector under the Oil & Gas Equipment & Services industry and is headquartered in Houston, TX, US. The company is led by CEO Lorenzo Simonelli and employs approximately 57,000 people.

BKR 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. BKR passed 4 of these 4 screens.

BKR has negligible interest income, so purification may not be necessary. However, it is always advisable to consult a qualified scholar regarding your specific investment situation.

BKR 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.