Is OXY (Occidental Petroleum Corporation) Halal or Haram?

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

Occidental Petroleum Corporation (OXY) is a major global energy company engaged in oil and gas exploration across the United States, the Middle East, Africa, and Latin America. Beyond extraction, the company operates a robust chemical segment that manufactures essential basic chemicals like chlorine and caustic soda, alongside extensive midstream marketing operations. For Muslim investors utilizing AAOIFI standards, OXY currently holds a doubtful shariah compliance status. While its core energy operations are perfectly halal, the stock fails the critical debt screening, meaning it cannot be confidently added to a halal portfolio at this time without compromising compliance. From an Islamic finance perspective, OXY's primary hurdle is its high leverage, with a Debt-to-Market Cap ratio sitting at 39.8%. On a positive note, the company maintains very clean revenue streams with interest income accounting for just 1.01% of total revenue, and its cash reserves are well within permissible limits at 3.3%. Since the non-compliance is entirely driven by market-dependent debt ratios rather than haram business activities, Muslim investors should keep OXY on their watchlists. If the company aggressively pays down its debt or experiences a significant surge in market capitalization, it could easily regain a compliant status in future quarters. Occidental Petroleum Corporation operates in the Energy sector under the Oil & Gas Exploration & Production industry and is headquartered in Houston, TX, US. The company is led by CEO Vicki A. Hollub and employs approximately 10,412 people.

OXY 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. OXY passed 3 of these 4 screens.

OXY 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.