Is GE (GE Aerospace) Halal or Haram?

Based on our AAOIFI-standard shariah screening, GE 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 (5.65% vs ≤33% threshold), interest income ratio (0.00% vs ≤5% threshold), and cash & securities ratio (3.42% vs ≤33% threshold).

GE Aerospace stands as a global titan in aviation, focusing exclusively on the design, manufacturing, and servicing of jet engines and integrated systems for commercial and military aircraft. Following its separation from the broader General Electric conglomerate, the company now operates as a pure-play aerospace leader, powering fleets with brands like Avio Aero and Dowty Propellers. Its engines are critical components for major airframers, making it a foundational stock in the industrial sector. For Muslim investors, GE Aerospace is currently classified as Halal, having passed all four rigorous AAOIFI screening standards. The company's business activities are inherently permissible, centering on engineering and technology rather than prohibited industries like alcohol or gambling. Practically, this means investors can include GE in a Shariah-compliant portfolio without needing to purify dividends based on the primary business model. Financially, GE Aerospace presents a robust profile for the Shariah-conscious investor, particularly regarding leverage. Its interest-bearing debt sits at a comfortable 5 .6% of market capitalization, far below the 33% limit, indicating a balance sheet that isn't overly reliant on prohibited riba-based financing. Furthermore, the company reports 0.00% interest income relative to revenue , showcasing exceptional compliance with the rule against earning money from money. While the stock is currently compliant, investors should continue to monitor the company's contracts within the defense sector, as some scholars debate the permissibility of revenue derived from specific types of military weaponry. However, given that GE's primary focus is propulsion and systems rather than controversial munitions, it remains a widely accepted holding in Islamic funds. GE Aerospace operates in the Industrials sector under the Aerospace & Defense industry and is headquartered in Evendale, OH, US. The company is led by CEO H. Lawrence Culp Jr. and employs approximately 53,000 people.

GE 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. GE passed 4 of these 4 screens.

GE 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.

GE 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.