Is SHEL (Shell plc) Halal or Haram?

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

Shell plc is one of the world' s largest energy supermajors, operating across the entire oil and gas supply chain, from upstream exploration to downstream marketing. Its operations are vast, including the extraction of crude oil and natural gas, the production of LNG (Liquefied Natural Gas), and a growing portfolio in renewables and petrochemicals. For investors, Shell represents a massive player in the global energy transition, balancing traditional fossil fuels with new low-carbon energy solutions. For Muslim investors using HalalStocks.co.uk, Shell currently presents a challenge because it does not fully meet all AAOIFI shariah standards. The stock is marked as 'Doubt ful' primarily because it failed the financial screening regarding debt. While the core business of selling energy is permissible (Halal), the company's capital structure relies too heavily on interest-bearing debt compared to its market value. Specifically, Shell 's Debt-to-Market Cap ratio stands at 45.6%, significantly higher than the allowable 33% limit set by AAOIFI standards. However, the company remains strong in other areas, with interest income accounting for only 0 .73% of revenue and cash holdings sitting comfortably at 13.2%. This indicates that while the business operations are clean, the financing method is currently non-compliant. Investors interested in Shell should monitor its debt reduction efforts or changes in its market capitalization, as a shift in either could bring the stock back into compliance. Until the leverage ratio drops below the 33% threshold, conservative Muslim investors typically avoid this stock to ensure their portfolio remains strictly within shariah boundaries. Shell plc operates in the Energy sector under the Oil & Gas Integrated industry and is headquartered in London, GB. The company is led by CEO Wael Sawan and employs approximately 96,000 people.

SHEL 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. SHEL passed 3 of these 4 screens.

SHEL 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.