Is TEL (TE Connectivity Ltd.) Halal or Haram?

Based on our AAOIFI-standard shariah screening, TEL 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 (10.88% vs ≤33% threshold), interest income ratio (0.49% vs ≤5% threshold), and cash & securities ratio (2.09% vs ≤33% threshold).

TE Connectivity Ltd. is a global technology leader that designs and manufactures connectivity and sensor solutions. The company operates across three main segments—Transportation, Industrial, and Communications—providing essential components like terminals, relays, and antennas for automotive and commercial markets. For Muslim investors, TE Connectivity presents a compelling opportunity as it successfully passes all four AAOIFI shariah screens and is classified as Halal. Its core business of hardware manufacturing avoids impermissible industries, meaning investors can confidently add this tech stock to their portfolios without compromising their faith. From an Islamic finance perspective, the company's balance sheet is remarkably clean. TE Connectivity holds a very low debt-to-market cap ratio of 10.9% and a cash-to-market cap ratio of 2.1%, both sitting comfortably below the strict 33% limits set by Islamic scholars. While the stock is currently fully compliant, halal investors should periodically monitor its interest-bearing debt and cash reserves to ensure they remain within permissible limits as market capitalizations fluctuate. TE Connectivity Ltd. operates in the Technology sector under the Hardware, Equipment & Parts industry and is headquartered in Ballybrit, IE. The company is led by CEO Heath A. Mitts and employs approximately 85,000 people.

TEL 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. TEL passed 4 of these 4 screens.

Although TEL passes all shariah screens, it does earn $83.0M in interest income (0.49% 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 $0.49 to purify the income.

TEL 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.