Is PG (The Procter & Gamble Company) Halal or Haram?

Based on our AAOIFI-standard shariah screening, PG 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 (9.17% vs ≤33% threshold), interest income ratio (0.56% vs ≤5% threshold), and cash & securities ratio (2.47% vs ≤33% threshold).

Procter & Gamble is a global titan in consumer packaged goods, dominating household shelves with iconic brands across five core segments including Beauty, Grooming, and Fabric & Home Care. From Head & Shoulders shampoo to Gillette razors and Tide detergent, their products are daily essentials for billions of consumers worldwide, providing the company with a massive , defensive economic moat. For Muslim investors, PG represents a classic 'Halal' investment opportunity, having passed all four rigorous AAOIFI screening criteria. The company's business activities are fundamentally permissible, focusing on cleaning, hygiene, and personal care products that do not conflict with Islamic principles. Financially, PG is particularly attractive due to its conservative balance sheet; its interest-bearing debt is only 9.2% of its market capitalization, far below the 33% threshold. Furthermore, the company generates almost all its revenue from product sales, with interest income accounting for a tiny 0.5 6%, ensuring your investment returns are not tainted by significant riba (interest). While the stock is fully compliant, investors should always monitor the company's debt levels during periods of aggressive acquisition or share buybacks. However, given PG's history of stable cash flow and low leverage, it currently stands as a robust, shariah-compliant choice for long-term portfolios . The Procter & Gamble Company operates in the Consumer Defensive sector under the Household & Personal Products industry and is headquartered in Cincinnati, OH, US. The company is led by CEO Shailesh G. Jejurikar and employs approximately 108,000 people.

PG 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. PG passed 4 of these 4 screens.

Although PG passes all shariah screens, it does earn $469.0M in interest income (0.56% of revenue). Many scholars recommend purifying this portion by donating the equivalent percentage of any dividends received to charity. For example, if you receive $100 in dividends, you would donate approximately $0.56 to purify the income.

PG was last screened on 2026-02-24. 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.