Is BP (BP p.l.c.) Halal or Haram?

Based on our AAOIFI-standard shariah screening, BP 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 84.36% exceeds the ≤33% threshold. Its cash & securities ratio of 36.75% exceeds the ≤33% threshold.

BP p.l. c. is one of the world's 'supermajor' oil and gas companies, operating a vertically integrated business model that spans from deep-sea oil extraction to retail forecourts. The company is structured around three main segments: Gas & Low Carbon Energy, Oil Production & Operations, and Customers & Products, which includes the well-known Castrol lubricant brand and a growing network of EV charging stations. Beyond traditional fossil fuels, BP is actively expanding into wind power and hydrogen technologies as part of its energy transition strategy. For Muslim investors using HalalStocks.co.uk, BP is currently classified as Not Halal (Haram) due to financial screening failures. Although the company passes the business activity screen —since selling energy and fuel is permissible—it fails two critical financial ratios. Specifically, its interest-bearing debt and liquid assets are too high relative to its market value, meaning the stock does not meet the strict financial health criteria required by AAOIFI standards. From a financial perspective, the primary concern is the company's leverage. With a Debt-to -Market Cap ratio of 84.4%, BP is carrying significantly more debt than the 33% limit allowed for Shariah-compliant equities. Additionally, its Cash & Securities ratio sits at 36.8%, slightly above the 33% threshold, indicating a high concentration of liquid assets that generate impermissible interest income, even if that specific revenue stream is currently small. Investors should monitor BP's balance sheet for significant deleveraging or a rise in market capitalization, which could bring these ratios back into compliance. Until the debt burden is reduced significantly, the stock remains non -compliant for those adhering to AAOIFI guidelines, regardless of the permissibility of its underlying energy business. BP p.l.c. operates in the Energy sector under the Oil & Gas Integrated industry and is headquartered in London, GB. The company is led by CEO Carol-Lee Howle and employs approximately 100,500 people.

BP 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. BP passed 2 of these 4 screens.

BP 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.