Is Nippon Steel (5401.T) stock halal?
Screened against AAOIFI Shari’ah Standard 21
Not settled. Nippon Steel (5401.T) could not be confirmed either way under the AAOIFI Shari’ah Standard 21 screen. The interest-bearing debt test couldn’t be settled: Only an upper estimate is available, and it is over the limit. No debt figure was reported, so total liabilities are used as an upper bound. We show this as Needs Review rather than guess. Last checked 2 October 2026.
Nippon Steel needs further review under Halal / Islamic guidelines
AAOIFI Shari’ah Standard 21 Financial Audit
Figures from the latest annual report (the SEC filing or, for European companies, the ESEF annual report, where one exists, checked against Yahoo Finance) and a 36-month average market value.
| Test | Standard Limit | Actual Figure | Status |
|---|---|---|---|
| Main business | — | — | Pass |
| Interest-bearing debt | 30% | 258.81% | Review |
| Cash and interest-bearing investments | 30% | 15.46% | Pass |
| Prohibited income | 5% | 0.31% | Pass |
| Not just cash and debts | 90% | 15.58% | Pass |
Key Findings & Observations
- The interest-bearing debt test couldn’t be settled: Only an upper estimate is available, and it is over the limit. No debt figure was reported, so total liabilities are used as an upper bound.Source: AAOIFI Shari'ah Standard 21
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Frequently Asked Questions about Nippon Steel Corporation (5401.T)
Is Nippon Steel (5401.T) stock halal?▾
Not settled. Nippon Steel (5401.T) could not be confirmed either way under the AAOIFI Shari’ah Standard 21 screen. The interest-bearing debt test couldn’t be settled: Only an upper estimate is available, and it is over the limit. No debt figure was reported, so total liabilities are used as an upper bound. We show this as Needs Review rather than guess. Last checked 2 October 2026.
What is Nippon Steel's debt ratio under Islamic finance standards?▾
Under AAOIFI Shari’ah Standard 21, interest-bearing debt must stay under 30% of a company's 36-month average market value. Nippon Steel's ratio is at most 258.8%.
How much dividend purification is required for Nippon Steel (5401.T) stock?▾
Under AAOIFI Shari’ah Standard 21, shareholders should give away the part of their income that comes from prohibited sources: ¥6 per share for the latest financial year. The amount goes to charity, without counting it as one's own donation.
Does Nippon Steel operate in prohibited business activities?▾
AAOIFI Shari’ah Standard 21 excludes companies whose main business is prohibited, such as alcohol, pork, gambling, conventional interest-based finance and adult entertainment. Nippon Steel's main business is checked against these. For companies that file with the US SEC, revenue by division is also read from the filing, so a division in a prohibited business is counted. Where the check cannot be settled, the result is shown as Needs Review rather than guessed.
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