FTSE 100: which companies are halal?

Looking to invest in large UK companies? The FTSE 100 companies are the ones you’ll naturally turn to. It contains a roster of household names like BT, Next and Shell. Our research reveals that 42 of the 100 are sharia-compliant.

But which ones are sharia-compliant? We’ve solved that for you. Just click the button below to download the Excel spreadsheet. Below is a guide on how to use the spreadsheet which you must read.

Please note that the spreadsheet is accurate as at May 2020 and will be regularly updated insha’Allah. If you disagree with any of the findings, please do get in touch as it will benefit everyone for us to correct it – it’s a community effort.

How it works

There are broadly 5 criteria to assess when analysing a company for sharia compliance. Two are subjective assessments:

  1. Is the business of the company halal? E.g. a gambling company is obviously haram.
  2. Is the company being run in a fair and ethical way? As Muslims, we should not support companies which have scrupulous and unethical business practices. For FTSE 100 companies, this should not be an issue.

Then you have some financial criteria:

  1. The company must not have more than 33% interest-bearing debt compared to its total assets.
  2. The company should not have haram revenue of more than 5% of total revenue.
  3. The company should have at least some illiquid assets.

We think Muslims should have a solid grasp of understanding how to analyse this properly. We have a course on how to. We think that apps, whilst helpful, are not the be-all and end-all. Proper reviews are done manually in case of nuance.

What we’ve done

We have run the numbers for the financial ratios. So the excel spreadsheet basically covers 2 of the 3 financial criteria set out above. The one it doesn’t cover is whether haram revenue exceed 5%.

But we’ve also looked at the companies in terms of the subjective criteria too. We’ve put a “Y” if we think the business is generally halal. This will usually mean that its haram revenues do not exceed 5%. But have a think about this yourself whilst you’re researching the company too.

For some companies, we have left it blank when deciding if it’s a halal business or not. The reason for this is that these are edge cases where there is no clear cut answer.

We will update this article with a separate article on how to analyse these edge cases. For now though, it is perhaps best to avoid these.

So that covers 4 of the 5 criteria. The only remaining one is whether the business is being run in a fair way. In my view, the answer to this is always going to be yes for FTSE 100 companies. They have strict governance and controls. This might change if a company is involved in some major scandal but that is unlikely.

How to use the spreadsheet

We have included 4 columns:

Total borrowing as a % of total assets

Here, we have the % figure for how much the company is borrowing as a percentage of its total assets. This should not be more than 1/3. So we filtered this column so that it would only show companies who had 33% or less total borrowing as a percentage of total assets.

Current assets as a % of market cap / 3yr average market cap

These are the next two columns. I’ll explain why there’s two shortly.

The current assets as a percentage of market cap aims to understand which companies have got no illiquid sitting in the company. If a company only has liquid assets, this figure would be 100%.

So we have filtered so that only companies with 99% or less can appear.

The thinking behind including an additional column which measures against the 3-year average market cap is that it smoothes out sudden price fluctuations.

Thus, I have only filtered the 3-year average market cap column to show companies with 99% or less.

Another potential calculation to do here is current assets as a % of total assets. I have not done that here but this is an ongoing area of consideration for me to understand which is the more Islamically sound calculation to do.

Halal Business?

This is a simple Y or N answer (except where we’ve left it blank for edge cases). Examples of a no would be gambling companies or tobacco companies. The list is filtered to include the blanks and the yeses only.

For the ones that are blank, we will update this article with a new article that explains how to think about these. We also have a dedicated section on how to do this in our course.

What next?

If you are looking to buy these shares, you’ll need a broker to do so. We personally like AJ Bell for their wide range of stocks, Islamic funds and really helpful customer service.

If you open a stocks and shares ISA with them, your gains will be free of tax. It also helps us if you open your ISA via our link below!


Keep Reading

33 Comments. Leave new

  • Waheed Ahmad
    May 13, 2020 10:55 am

    Salaam Mohsin, JazaakAllah for the list, this is really useful. One question I have on Tesco PLC which is marked as Y in the halal column, as they sell Alcohol and non-halal meat and food products, which I am assuming is more than 5% of their revenue, wouldnt this come under as not being halal?

    • Mohsin Patel
      May 13, 2020 10:56 am

      Oh I didn’t mean to include that as a ‘Y’, that’s my mistake. Thanks for flagging! I think this is an edge case personally. One would have to understand their revenue sources a bit better.

      • Muhammed Toufail Ahmed
        May 20, 2020 2:36 am

        السَّلاَمُ عَلَيْكُمْ وَرَحْمَةُ الله
        Is BT shares halal to purchase its blank on the spreadsheet at the moment.

        • Mohsin Patel
          May 22, 2020 1:15 am

          From a pure business perspective I think BT is fine.

          • Muhammed Toufail Ahmed
            May 22, 2020 1:41 pm

            Fine meaning, BT Stocks/Shares meet the criteria IFG has laid out to be Sharia complaint?
            Apologies for asking again its for clarity purpose.

          • Muhammed Toufail Ahmed
            May 22, 2020 1:41 pm

            Fine meaning, BT Stocks/Shares meet the criteria IFG has laid out to be Sharia complaint?
            Apologies for asking again its for clarity purpose.

            JazakAllah Khair

          • M Zeeshan Rahman
            May 22, 2020 6:17 pm

            Hi Mohsin,

            Great job you guys are doing. Carnival’s is marked “Y” but wondering if the business would involve bars and casinos in the cruises…


  • Salaam Mohsin, I cant seem to download the list of the shariah compliant 42 FTSE stocks.

    Can you email the list to me instead!

  • Salaam Mohsin- hope all is well. When I try downloading it says ‘Thanks for already being a member, you now have access to the resources’ however no further instructions on how to download the doc?

    • This happened to me. A yellow bar popped up at the top of my browser asking if I wanted to open blocked content. Press yes and it should work

  • Asalam alaykum warahmatullah brothers at ifg I believe their is an issue with the downloading process… I cannit access the intended excel sheet.. It does not give me the option to view the file.

    But as I try to open it by selecting it in the drop down menu on my phone it does to open the document

  • Hi mohsin

    Firstly great job for making this list. I was really looking for such a thing for some time.

    Unfortunately i have the same issue as mohammed above. This is a usual issue for me on when I try to download things From website. I think there is also a guide on halal investing which says it will be emailed but i have not received.

    • Ibrahim Khan
      May 16, 2020 3:56 pm

      The issue is that you have a pop-up blocker active or auto-download blocker active. If you disable that, the excel sheet link is allowed to download automatically.

      Try that – if it doesn’t work, drop us a line and we’ll send you the document.

      • Perfect. It was indeed the case. I was able to access it after allowing it in the pop up blocker. I will inshallah look at the list.

      • Is it possible to get halal muslim company to invest into with zero interest and free from debt

  • Furqan Gilani
    May 16, 2020 8:53 pm

    Salam Mohsin/Ibrahim,
    Thanks again for doing this. May ALLAH reward you for this, Ameen. I have a few questions
    1) I am confused with regards to companies like Just Eat and Ocado group. Part of their business/revenue deals with pork and possibly Alcohol too. Should they be part of edge cases as well? I have personally remained away from online delivery business like Amazon, Ali Baba and as I think they fail the qualitative part of shariah screening. Kindly explain.
    2) I also stay away from any real estate businesses or REITs (Berkeley Group Holdings PLC & Land Securities Group) as they tend to deal with interest. The interest linked revenue might satisfy the quantitative shariah screens, but I just think that these kind of business deal with a lot of interest linked activities. Whats your take on that? Please clarify as I am no expert.
    Jazakallah again for your help and guidance.

    • Dear Furquan,

      Thanks for your query, which is online with my earlier query on 24/5/2020.

      Please read mine as well. It is not only the haram business that matters it is the financial dealings as well. Almost every company either take loans or deposit revenues to the banks, both involve, by default, interest.
      We need a trusted and experienced scholar who can respond to us and convince us.
      Kind regards to all

  • Asalamualikum
    Can we hot find 100 halal investment
    Rather tham 30 haram, which updets [email protected]

  • M Zeeshan Rahman
    May 22, 2020 6:19 pm


    Are you planning to extend this great initiative to US stock exchange too? there are already a lot of shariah-compliant funds out there which can be piggy bagged to compile a list.


  • Thank you for your efforts to do this job and Jazakum Allah Khairan for these endeavors.

    I just can not understand as to where the 5.0% interest and the 33% loan percentage have come from.

    Majority of scholars have simply said that any interest practice is considered (Riba/usury) and any of such, whatever its percentage is, means that the practice itself is there. They even did not differentiate between one taking or paying it.

    I have shares in Shell and it seems that, according to them, I have to sell them and get completely out of the market because all companies are even not aware of these principals and therefore if they do not borrow or deposit in Ribawy banks today, they would do tomorrow/any time.

    I am really confused!

    Many thanks in advance.

    Thanks and kindest regards

  • Tauhid Abdullah
    May 27, 2020 4:48 am

    Salaam, tried couple of times to download but unfortunately nothing happens. Appreciate if this could be looked into. JazakAllah khair.

  • Dear Brothers Mohsin and Ibrahim,

    I am waiting for your valuable answer to my 24th May query please.

  • Assalualaikum,

    I can see National Grid PLC marked as blank any reasons why a utility business is considered on the edge ?

  • Salaam Mohsin, I cant seem to download the list of the shariah compliant 42 FTSE stocks.

    Can you email the list to me instead.

  • Salaam!
    Was wondering why whitbread plc is halal on the spreadsheet when they currently own pubs too such as Brewers Fayre? Appreciate if you can clarify as I have bought stocks because of it and only realised later that it’s not just premier inn they own.

  • Salam
    I have requested as I can’t download 42 FTCE 100 .
    Can you please resend me .
    Thank you.

  • Salaam

    I would like to know if Aston Martin Lagonda which is listed on FTSE 250 is shariah compliant?

    Jazakallah Khair

  • Salaam,

    I’ve just downloaded the list and admittedly just had a quick glance, but it surprised me WTB Whitbread PLC is a company which you listed as a Halal Business, when they own a licensed pub restaurant chain?

    Am I missing something here?

    Look forward to your response.

    JazakAllah khair.

  • Assalamualykum. Is Ali Baba or halal according to the 4 usool laid out by mufti taqi usmani and the rest?

  • Thank you for your efforts and time for creating this very useful spreadsheet

  • You have stated some companies in the list such as BP, Shell, astra zeneca as halal but in the zoya app these come up as non -shariah compliant?

  • Moazzem Rehman
    February 21, 2021 5:20 pm

    How do you calculate the number about the total debt to total assets ratio or percentage – given in your excel sheet. Can I have the formula and the precise components that you put into your formula pls and the websites you use for your figures pls?

  • Salaam, please could you clarify whether rolls Royce shares are halal? Thanks in advance


Leave a Reply

Your email address will not be published. Required fields are marked *

Fill out this field
Fill out this field
Please enter a valid email address.
You need to agree with the terms to proceed

This site uses Akismet to reduce spam. Learn how your comment data is processed.

How Your Kid’s Eidi Could Fund their University Fees
How to Calculate Zakat on Startups
Every British Muslim needs a will. IFG Wills is an affordable quality option entirely online.
Get exclusive tips, resources and courses delivered straight to your inbox from IFG.
  • This field is for validation purposes and should be left unchanged.