Is GLEN.L (Glencore plc) Halal or Haram?

Based on our AAOIFI-standard shariah screening, GLEN.L 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 GLEN.L.

Glencore plc is one of the world's largest diversified natural resource companies, operating as both a major producer and marketer of over 60 commodities. Its business is split between Industrial Activities, where it mines copper, cobalt, zinc, and coal, and Marketing Activities, where it physically trades these goods globally. This dual structure allows them to capture value at every stage of the supply chain, from the mine pit to the end consumer in the automotive, steel, and energy sectors. For Muslim investors, Glencore presents a complex case that currently falls into the 'Doubt ful' or non-compliant category based on standard AAOIFI screening. Although the business activity itself is permissible—dealing in real assets like metals and energy—the company fails the financial screening due to excessive leverage. Specifically, the Debt-to-Market Cap ratio sits at 68.4%, which is more than double the acceptable limit of 33%, signaling a heavy reliance on interest-bearing loans. From a financial health perspective, the company performs well on other metrics, with interest income accounting for only 0.21% of revenue and cash holdings remaining low at 4.7% of market cap. However, the high debt load is a critical red flag in Islamic finance, as it implies significant engagement with R iba (interest) on the liability side of the balance sheet. Investors adhering strictly to shariah governance would typically avoid this stock until the company significantly deleverages. Investors monitoring Glencore should watch for debt reduction initiatives or significant shifts in market capitalization that might bring the leverage ratio down. Until the debt levels align with the 33% threshold, the stock remains unsuitable for shariah-compliant portfolios despite its strong position in the transition to green energy metals. Glencore plc operates in the Basic Materials sector under the Industrial Materials industry and is headquartered in Baar, CH. The company is led by CEO Gary Nagle and employs approximately 84,146 people.

GLEN.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. GLEN.L passed 3 of these 4 screens.

GLEN.L was last screened on 2026-03-01. 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.