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Is Associated British Foods (ABF.L) stock halal?

Screened against AAOIFI Shari’ah Standard 21

Not settled. Associated British Foods (ABF.L) could not be confirmed either way under the AAOIFI Shari’ah Standard 21 screen. The prohibited income test couldn’t be settled: Yahoo reports interest income of £238M, more than the company’s cash, investments and receivables could earn at 10% (£226.3M), so that figure was set aside. So the income test can’t be settled. We show this as Needs Review rather than guess. Last checked 22 September 2026.

VerdictNeeds Review

Associated British Foods needs further review under Halal / Islamic guidelines

Faith Score
61
out of 100
Status
Needs Review
Last checked
Sector
Consumer Defensive
Purification
Not settled

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.

TestStandard LimitActual FigureStatus
Main business——Pass
Interest-bearing debt30%24.61%Pass
Cash and interest-bearing investments30%7.06%Pass
Prohibited income5%—Review
Not just cash and debts90%11.73%Pass

Key Findings & Observations

  • The prohibited income test couldn’t be settled: Yahoo reports interest income of £238M, more than the company’s cash, investments and receivables could earn at 10% (£226.3M), so that figure was set aside. So the income test can’t be settled.
    Source: AAOIFI Shari'ah Standard 21

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Frequently Asked Questions about Associated British Foods plc (ABF.L)

Is Associated British Foods (ABF.L) stock halal?▾

Not settled. Associated British Foods (ABF.L) could not be confirmed either way under the AAOIFI Shari’ah Standard 21 screen. The prohibited income test couldn’t be settled: Yahoo reports interest income of £238M, more than the company’s cash, investments and receivables could earn at 10% (£226.3M), so that figure was set aside. So the income test can’t be settled. We show this as Needs Review rather than guess. Last checked 22 September 2026.

What is Associated British Foods'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. Associated British Foods's ratio is about 24.6%.

How much dividend purification is required for Associated British Foods (ABF.L) stock?▾

No purification is required for Associated British Foods based on its latest annual report.

Does Associated British Foods 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. Associated British Foods'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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