Is WMB (The Williams Companies, Inc.) Halal or Haram?

Based on our AAOIFI-standard shariah screening, WMB 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 (32.86% vs ≤33% threshold), interest income ratio (0.35% vs ≤5% threshold), and cash & securities ratio (0.07% vs ≤33% threshold).

The Williams Companies, Inc. (WMB) is a major American energy infrastructure firm specializing in the midstream oil and gas sector. It operates critical natural gas pipelines, including the Transco and Northwest systems, alongside gathering, processing, and crude oil transportation facilities across the Gulf Coast and Northeast. For Muslim investors, WMB is currently classified as a Halal stock, having successfully passed all four AAOIFI screening criteria. Its core business of transporting and processing physical energy resources is inherently permissible, avoiding the prohibited elements found in conventional financial services or speculative energy trading. From an Islamic finance perspective, WMB's revenue purity is excellent, with interest-bearing income accounting for just 0.35% of total revenues. However, its debt-to-market capitalization ratio of 32.9% is sitting just below the strict 33% AAOIFI threshold, which requires careful ongoing attention from shareholders. Because WMB's debt levels are borderline, slight fluctuations in its stock price or new corporate borrowing could easily push it into non-compliant territory. Halal investors must actively monitor this specific metric in upcoming quarterly earnings to ensure the stock remains a permissible hold in their portfolios. The Williams Companies, Inc. operates in the Energy sector under the Oil & Gas Midstream industry and is headquartered in Tulsa, OK, US. The company is led by CEO Chad J. Zamarin and employs approximately 5,829 people.

WMB 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. WMB passed 4 of these 4 screens.

Although WMB passes all shariah screens, it does earn $42.0M in interest income (0.35% 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 $0.35 to purify the income.

WMB 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.