Is SMR (NuScale Power Corporation) Halal or Haram?

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

NuScale Power Corporation is a specialized energy company focused on developing proprietary small modular reactor (SMR) technology. Their flagship product, the NuScale Power Module, is a small-scale water reactor capable of generating 7 7 megawatts of electricity, which can be deployed in scalable clusters like their VOYGR-12 power plants. By targeting diverse applications from district heating to hydrogen production, NuScale aims to provide a flexible, carbon-free alternative to traditional fossil fuel generation. For Muslim investors, NuScale presents a mixed picture because its current compliance status is marked as 'Doubt ful.' While the core business of generating nuclear energy is Shariah-compliant, the company failed the crucial interest income screen. Specifically , the interest earned on its cash reserves constitutes 22.64% of its total revenue, significantly breaching the 5 % limit set by AAOIFI standards, making it ineligible for many strict Shariah portfolios at this time. From a financial health perspective, NuScale is unique because it currently carries zero debt relative to its market capitalization, easily passing the leverage screen. However, because the company is in a pre-revenue or early-revenue growth phase, it relies heavily on cash reserves which generate interest, skewing the income ratio. Investors interested in this stock should monitor future earnings reports to see if operational revenue begins to outpace interest income, which would eventually bring the company back into compliance. NuScale Power Corporation operates in the Utilities sector under the Renewable Utilities industry and is headquartered in Portland, OR, US. The company is led by CEO John Lawrence Hopkins and employs approximately 330 people.

SMR 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. SMR passed 3 of these 4 screens.

SMR was last screened on 2026-02-25. 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.