Consumer Cyclical · Internet Retail
Is Alibaba Group Holding Limited (BABA) Stock Halal?
Shariah Compliance Across 5 Standards — Live
Screen BABA live and build a compliant portfolio
Live verdicts across 5 Shariah standards, financial ratios, segment-level business income, purification and Zakat — one workspace, always current.
Shariah Compliance Verdict — 5 Standards
AAOIFI (Shari'ah Standard 21)market-cap basis
impure income 13.9% > 5%
Dow Jones Islamic Marketmarket-cap basis
impure income 13.9% > 5%
FTSE Shariah (Yasaar)total-assets basis
debt/assets 101.8% > 33%; AR+cash/assets 73.9% > 50%; impure income 13.9% > 5%
MSCI Islamictotal-assets basis
debt/assets 101.8% > 33%; AR+cash/assets 73.9% > 70%; impure income 13.9% > 5%
S&P Shariahmarket-cap basis
impure income 13.9% > 5%
Live verdicts from the Halal Terminal screening engine, recomputed against the issuer's latest filings.
Plain-English Summary
Fails AAOIFI, DJIM, FTSE, MSCI, S&P on interest/revenue 13.9% > AAOIFI 5%, DJIM 5%, FTSE 5%, MSCI 5%, S&P 5%; debt/assets 101.8% > FTSE 33%, MSCI 33%; AR/assets 66.7% > FTSE 50%.
Why Screeners May Disagree on BABA
Alibaba Group Holding Limited reports financials in CNY while trading in USD. Market-cap ratios are computed with a CNY→USD rate of 0.1479 so the screens compare like-for-like currencies.
Business Activity Screen
Business activity is compliant.
Financial Ratios
Interest-bearing debt / market cap
AAOIFI ≤30% · DJIM/S&P <33% (trailing-avg MC)
14.9%
Cash & interest-bearing / market cap
AAOIFI ≤30% of market cap
1.1%
Debt / total assets
FTSE/MSCI <33.33% of total assets
102.0%
Cash & interest-bearing / total assets
FTSE/MSCI <33.33% of total assets
7.2%
Receivables + cash / total assets
FTSE <50% · MSCI ≤70%
73.9%
Interest income / revenue
≤5% across all methodologies
13.9%
Raw ratios from the latest filings — each methodology applies its own basis and thresholds (see the verdict box above for per-standard outcomes).
Purification
Purification rate: 13.90% of income
The purification rate estimates the share of the company's income attributable to impure sources (primarily interest). Scholars recommend donating that share of any dividends or gains to charity. Use the terminal's purification calculator for exact amounts on your holding.
Balance-Sheet Trajectory (8 Quarters)
| Quarter end | Debt / assets | Cash / assets | Receivables + cash / assets |
|---|---|---|---|
| 2019-03-31 | — | 19.7% | 19.7% |
| 2020-03-31 | — | 25.2% | 25.2% |
| 2021-03-31 | — | 19.0% | 19.0% |
| 2022-03-31 | — | 11.2% | 11.2% |
| 2023-03-31 | — | 11.0% | 11.0% |
| 2024-03-31 | — | 14.1% | 14.1% |
| 2025-03-31 | — | 8.1% | 8.1% |
| 2026-03-31 | — | 6.9% | 6.9% |
A stock that has screened comfortably for eight straight quarters is a different story from one that crossed a threshold last quarter — trajectory shows which one this is.
Frequently Asked Questions
Is Alibaba Group Holding Limited (BABA) halal to invest in?
Alibaba Group Holding Limited currently screens as non-compliant on the Halal Terminal engine. The verdict is recomputed against the issuer's latest financial filings and all five major methodologies (AAOIFI, DJIM, FTSE, MSCI, S&P) — see the per-standard breakdown above. This is a data-driven application of published standards, not a fatwa.
Is BABA compliant under AAOIFI?
No — BABA currently fails AAOIFI screening: impure income 13.9% > 5%.
Do I need to purify dividends from BABA?
The current computed purification rate is 13.90% — the share of income attributable to impure sources that scholars recommend donating to charity.
Why do halal screening apps disagree about BABA?
Different services apply different ratio bases (market capitalization vs total assets), different revenue classifications, and different data vintages. This page shows both AAOIFI readings side by side and classifies revenue segments explicitly so the source of any disagreement is visible.
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Live verdicts across 5 Shariah standards, financial ratios, segment-level business income, purification and Zakat — one workspace, always current.
Disclaimer: This page is for educational and informational purposes only and does not constitute financial or religious advice. Verdicts and figures come from the Halal Terminal screening engine, computed from the issuer's public financial filings and refreshed regularly (last screened 2026-07-22). This is a data-driven application of published Shariah standards — not a fatwa. Consult a qualified Islamic finance scholar or advisor for personalised guidance.