Is DGE.L (Diageo plc) Halal or Haram?

Based on our AAOIFI-standard shariah screening, DGE.L is Not Halal (Haram) and is not considered permissible for Muslim investors. It failed 2 of 4 compliance screens. Diageo plc's core business activity was found to be non-compliant. Its debt-to-market-cap ratio of 58.91% exceeds the ≤33% threshold.

Di ageo plc is a global leader in the beverage alcohol industry, operating in over 180 countries with an extensive portfolio of over 200 brands. The company is best known for producing iconic spirits and beers, including Johnnie Walker scotch, Smirnoff vodka, Tanqueray gin, Captain Morgan rum, and Guinness stout. Its operations span the entire supply chain, from distillation and brewing to global marketing and distribution. For Muslim investors, Diageo presents a clear case of non-compliance due to the nature of its core business. The stock is classified as Haram (Not Halal) because the vast majority of its revenue comes from the sale of alcohol, which is strictly prohibited in Islamic finance. Even if the financial ratios were perfect, the imper missible nature of the underlying business activity automatically disqualifies it from investment consideration under AAOIFI standards. Fin ancially, the company also fails the debt screening criteria, holding a Debt-to-Market Cap ratio of 58 .9%, which is significantly higher than the 33% limit typically accepted by shariah scholars. While its interest income is minimal at 0.78% of revenue, the combination of high leverage and a haram business model makes this stock unsuitable for any halal portfolio. Investors seeking exposure to the consumer defensive sector should look for alternatives in non-alcoholic beverages or food production. Diageo plc operates in the Consumer Defensive sector under the Beverages - Wineries & Distilleries industry and is headquartered in London, GB. The company is led by CEO Sir David John Lewis and employs approximately 30,092 people.

DGE.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. DGE.L passed 2 of these 4 screens.

DGE.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.