Is OTIS (Otis Worldwide Corporation) Halal or Haram?

Based on our AAOIFI-standard shariah screening, OTIS 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 (29.10% vs ≤33% threshold), interest income ratio (0.00% vs ≤5% threshold), and cash & securities ratio (3.64% vs ≤33% threshold).

Otis Worldwide Corporation is a global leader in the manufacturing, installation, and servicing of elevators, escalators, and moving walkways. Operating across residential, commercial, and infrastructure sectors, the company derives steady revenue through new equipment sales as well as ongoing maintenance and modernization contracts worldwide. For Muslim investors using HalalStocks.co.uk, OTIS is currently classified as a Halal investment, having successfully passed all AAOIFI screening criteria. Because its core business involves essential building machinery rather than financial services or prohibited goods, it easily clears the business activity screen, making it a fundamentally clean industrial play. From a financial perspective, Otis demonstrates solid compliance with a debt-to-market cap ratio of 29.1%, keeping it under the strict 33% threshold. Additionally, the company generates 0.00% interest income relative to its revenue, which is excellent news for investors seeking pure halal returns without the need for extensive dividend purification. While the stock is fully compliant today, investors should keep an eye on the company's debt levels during future earnings reports. Since the 29.1% debt ratio is relatively close to the 33% limit, significant drops in market capitalization or new debt issuance could potentially push it over the threshold, requiring regular portfolio monitoring. Otis Worldwide Corporation operates in the Industrials sector under the Industrial - Machinery industry and is headquartered in Farmington, CT, US. The company is led by CEO Judith F. Marks and employs approximately 72,000 people.

OTIS 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. OTIS passed 4 of these 4 screens.

OTIS 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.

OTIS 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.