Is LYB (LyondellBasell Industries N.V.) Halal or Haram?

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

LyondellBasell Industries N.V. is a major global chemical company operating across the Americas, Europe, and Asia. It specializes in producing essential industrial materials, including olefins, polyolefins, and various grades of polyethylene and polypropylene used in everyday manufacturing. For Muslim investors utilizing HalalStocks.co.uk, LYB currently holds a "Doubtful" status and is not considered shariah-compliant. Although its core chemical manufacturing operations are perfectly permissible, the stock fails the AAOIFI financial screening due to its heavy reliance on interest-bearing debt. The primary hurdle for halal investors is the company's debt-to-market cap ratio, which sits at an elevated 68.1%, well above the 33% Islamic limit. On a positive note, its interest income ratio is negligible at 0.24%, and cash reserves are compliant at 14.7% of its market capitalization. Since the non-compliance is purely financial rather than operational, Muslim investors should monitor LYB's balance sheet in future quarters. If the company significantly pays down its debt or if its market capitalization rises enough to dilute the debt ratio below 33%, it could eventually become a viable halal investment. LyondellBasell Industries N.V. operates in the Basic Materials sector under the Chemicals - Specialty industry and is headquartered in Houston, TX, US. The company is led by CEO Peter Z. E. Vanacker and employs approximately 20,000 people.

LYB 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. LYB passed 3 of these 4 screens.

LYB 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.