Is ULVR.L (Unilever PLC) Halal or Haram?

Based on our AAOIFI-standard shariah screening, ULVR.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 (24.87% vs ≤33% threshold), interest income ratio (0.79% vs ≤5% threshold), and cash & securities ratio (4.25% vs ≤33% threshold).

Unilever PLC is a global giant in the fast-moving consumer goods ( FMCG) sector, touching the lives of billions daily through three main divisions: Beauty & Personal Care, Foods & Refreshment, and Home Care. You likely recognise their powerhouse brands on supermarket shelves, ranging from Dove skin care and Ben & Jerry's ice cream to Domestos bleach and Knorr seasonings. As a defensive stock, it provides essential items that consumers purchase regardless of economic conditions, making it a stable component of many portfolios. For Muslim investors, Unilever is currently classified as Hal al, having passed all four critical shariah screening tests under AAOIFI standards. This means the company's core business activities are permissible, and its financial health aligns with Islamic principles regarding debt and interest. Specifically, the business activity screen is a clear pass because selling soap, soup, and cleaning supplies is fundamentally halal, provided specific non-halal ingredients are not the primary focus. Financially, Unilever demonstrates strong discipline that appeals to shariah-conscious investors. Its debt -to-market cap ratio stands at 24.9%, safely under the 33% threshold, indicating the company isn't overly leveraged with interest-bearing loans. Additionally, its cash and interest-bearing securities make up only 4.3% of its market cap, and interest income is a tiny fraction (0.79%) of its revenue, ensuring that 'haram' income is minimal and easily purified. While the stock is compliant, investors should always monitor the 'Foods & Refreshment' segment for any significant acquisitions of non-halal food brands, though this is currently not a major issue. The primary task for the investor now is simply to purify the small percentage of dividend income derived from that 0.79% interest revenue, usually by donating a corresponding small amount to charity. Unilever PLC operates in the Consumer Defensive sector under the Household & Personal Products industry and is headquartered in London, GB. The company is led by CEO Fernando Fernandez and employs approximately 115,964 people.

ULVR.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. ULVR.L passed 4 of these 4 screens.

Although ULVR.L passes all shariah screens, it does earn $390.8M in interest income (0.79% 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 $0.79 to purify the income.

ULVR.L 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.