Is IP (International Paper Company) Halal or Haram?

Based on our AAOIFI-standard shariah screening, IP 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 IP.

International Paper Company is a major global player in the packaging and containers industry. It primarily manufactures containerboards and global cellulose fibers used in everyday absorbent hygiene products like baby diapers, feminine care, and adult incontinence items. For Muslim investors using HalalStocks.co.uk, IP is currently classified as Doubtful. Although its core business activities are fully permissible and free from haram elements, the stock fails the AAOIFI financial screening due to a significant violation of the debt threshold, meaning it is not currently suitable for a strict halal portfolio. The primary concern from an Islamic finance perspective is the company's heavy debt load, with a debt-to-market cap ratio of 61.0%, far exceeding the 33% limit. Fortunately, its interest-bearing securities and interest income remain very low at 6.5% and 0.71% respectively, showing that its revenue is cleanly derived from its core operations rather than financial engineering. Since the underlying business activity is definitively halal, Muslim investors should monitor IP's balance sheet in the future. If the company significantly pays down its debt or its market capitalization rises enough to bring the debt ratio below 33%, it could transition to a fully compliant status. International Paper Company operates in the Consumer Cyclical sector under the Packaging & Containers industry and is headquartered in Memphis, TN, US. The company is led by CEO Andrew K. Silvernail and employs approximately 65,000 people.

IP 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. IP passed 3 of these 4 screens.

IP was last screened on 2026-04-29. 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.