Is SGE.L (The Sage Group plc) Halal or Haram?

Based on our AAOIFI-standard shariah screening, SGE.L 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 (20.52% vs ≤33% threshold), interest income ratio (0.48% vs ≤5% threshold), and cash & securities ratio (5.07% vs ≤33% threshold).

The Sage Group plc is a UK- based technology giant specializing in integrated accounting, payroll, and HR software for small and medium-sized businesses. Its flagship cloud -native products, such as Sage Intacct and Sage People, allow companies to automate financial management and workforce operations globally . Unlike generalist tech firms, Sage focuses specifically on the 'office of the CFO,' making it a critical infrastructure provider for millions of SMEs across North America and Europe. For Muslim investors, SGE.L is classified as Halal under AAO IFI standards, having passed all required financial and business activity screens. The company's core business of selling software subscriptions is inherently permissible, as it does not deal in prohibited goods like alcohol, pork, or gambling. This 'clean' status makes it an attractive option for those seeking exposure to the UK technology sector without compromising Islamic principles. Financially, Sage demonstrates fiscal discipline that aligns well with Islamic finance values. Its debt-to-market cap ratio stands at 20 .5%, well below the 33% upper limit, and its cash holdings are modest at 5.1 %, suggesting capital is being reinvested rather than hoarded in interest-bearing accounts. Crucially, the company generates less than 0.5% of its revenue from interest income, ensuring that the vast majority of its earnings are derived from legitimate trade and services. Going forward, investors should continue to monitor Sage's acquisition strategy, as buying heavily indebted companies could impact its compliance ratios. However, at present, the stock offers a stable, compliant opportunity in the software space with no significant scholarly debates surrounding its operations. The Sage Group plc operates in the Technology sector under the Software - Application industry and is headquartered in Newcastle upon Tyne, GB. The company is led by CEO Stephen Hare and employs approximately 10,740 people.

SGE.L 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. SGE.L passed 4 of these 4 screens.

Although SGE.L passes all shariah screens, it does earn $12.0M in interest income (0.48% 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 $0.48 to purify the income.

SGE.L was last screened on 2026-03-01. 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.