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

Based on our AAOIFI-standard shariah screening, BP.L 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 99.05% exceeds the ≤33% threshold. Its cash & securities ratio of 50.14% exceeds the ≤33% threshold.

BP p.l. c. is one of the world's 'supermajor' oil and gas companies, operating across the entire energy supply chain from deep-sea exploration to retail forecourts. Its business is divided into key segments like Gas & Low Carbon Energy and Oil Production & Operations, producing natural gas, biofuels, and lubricants under the famous Castrol brand. Beyond fossil fuels, the company is actively expanding into wind, solar, and hydrogen technologies as part of its transition strategy. For Muslim investors , BP is currently classified as Not Halal (Haram) based on AAOIFI standards. Although the core business of selling energy and convenience products is permissible, the company's financial health does not meet Shariah requirements. Specifically, BP failed two critical financial screens: its interest-bearing debt and its cash-to-market-cap ratio are both significantly higher than the allowed thresholds. The most concerning metric for Islamic investors is the Debt-to-Market Cap ratio, which stands at a staggering 99.0%, well above the 33% limit set by scholars to ensure companies aren't overly reliant on interest-based financing. Additionally, the company holds significant liquid assets, with a Cash & Securities ratio of 50 .1%, which also triggers a failure. While interest income remains low at 0.85%, the heavy debt load makes this stock non-compliant at this time. Investors interested in the energy sector should monitor BP's balance sheet for significant deleveraging in the future. Until the company reduces its debt load or its market capitalization increases enough to rebalance these ratios, it remains ineligible for Shariah-compliant portfolios. We recommend looking for alternative energy majors with cleaner balance sheets and lower reliance on interest-bearing debt. 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.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. BP.L passed 2 of these 4 screens.

BP.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.