Is CLF (Cleveland-Cliffs Inc.) Halal or Haram?

Based on our AAOIFI-standard shariah screening, CLF is classified as Doubtful. It passed 3 of 4 compliance screens. Some scholars may permit investing with income purification, while others advise avoiding it. We recommend consulting a qualified Islamic scholar before investing in CLF.

Cleveland-Cliffs Inc. stands as a major player in the North American steel industry, specializing as a flat-rolled steel producer. Their operations are extensive, covering everything from mining iron ore to manufacturing advanced carbon steel, stainless steel , and tubular components used in automotive and infrastructure projects. They are particularly notable for being the largest flat-rolled steel company and the largest iron ore pellet producer in North America. For Muslim investors, the primary concern with CLF lies in its financial ratios rather than its business operations. While the core activity of making steel is Halal, the stock is currently marked as 'Doubtful' because it failed the debt screening significantly. Specifically, the company’s interest-bearing debt relative to its market capitalization is 132.8%, which is well above the maximum 33% limit set by AA OIFI standards. From a financial perspective, the company shows discipline in other areas, with interest income accounting for 0.00% of revenue and cash holdings at only 0.9% of market cap, both of which are excellent figures for compliance. However, the high debt load suggests the company relies heavily on borrowing to finance its heavy industrial operations. Investors looking for strictly compliant assets should exercise caution until the company significantly deleverages its balance sheet. Cleveland-Cliffs Inc. operates in the Basic Materials sector under the Steel industry and is headquartered in Cleveland, OH, US. The company is led by CEO C. Lourenco Goncalves and employs approximately 30,000 people.

CLF 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. CLF passed 3 of these 4 screens.

CLF 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.