Is Unilever PLC (ULVR.L) halal?
Unilever PLC is considered halal under 2 of 5 standards — the scholars disagree. Below is the verdict under each of the five mainstream scholarly standards, with the deciding numbers and the source behind every threshold.
Ratios computed from Unilever PLC's Q4 2025 filing. Verdicts are re-computed when new financials are filed.
- BorderlineAAOIFI Standard
Interest-bearing debt / market cap 32.7% (limit 30%)
- Not halalMufti Taqi Usmani (stricter Hanafi)
Interest-bearing debt / market cap 32.7% (limit 30%); Illiquid (tangible) assets / total assets 18.0% (limit 20%)
- HalalDow Jones Islamic Market
All ratio checks pass.
- HalalJa'fari (Sistani-aligned)
All ratio checks pass.
- Not halalStrict / zero-tolerance
Impermissible income / revenue 0.8% (limit 0%); Interest-bearing debt / market cap 32.7% (limit 0%); Cash + interest-bearing securities / market cap 5.6% (limit 0%)
The standards disagree — knowing why lets you decide which view you follow.
- Illiquid-asset floor
Tangible (illiquid) assets are 18.0% of total. Mufti Taqi require at least 20% — the only standard that imposes this floor — so ULVR.L fails there while the others, which have no such rule, pass.
- Debt cap
Interest-bearing debt is 32.7% of market cap — over the 0%/30% cap used by AAOIFI, Mufti Taqi and Strict, but within the 33% cap of DJIM and Ja'fari.
- Cash & securities cap
Cash + interest-bearing securities are 5.6% of market cap — above the limit Strict apply, but within AAOIFI, Mufti Taqi, DJIM and Ja'fari's.
- Impermissible income
Impermissible (mostly interest) income is 0.8% of revenue — Strict allow 0% here, the others up to 5%.
Each difference is computed from the exact threshold each standard publishes — not an opinion. Pick the standard your scholar follows; HalalGauge shows the receipts either way.
The numbers behind the verdict
- Interest-bearing debt / market cap
- 32.7%
- Cash + securities / market cap
- 5.6%
- Receivables / market cap
- 8.5%
- Impermissible income / revenue
- 0.8%
- Illiquid (tangible) assets / total
- 18.0%
Thresholds and methodology differ by scholar — e.g. AAOIFI caps interest-bearing debt at 30% of market cap, DJIM at 33%, and Mufti Taqi additionally requires tangible assets to be at least 20% of total assets. That's why two screeners can disagree on the same stock.
- AAOIFI: AAOIFI Shariah Standard No. 21 (Financial Papers — Shares and Bonds)
- Mufti Taqi: Mufti Taqi Usmani — published equity-screening rulings (illiquid-asset rule)
- DJIM: S&P Dow Jones Islamic Market Indices — Index Methodology (Shariah Screening)
- Ja'fari: Ayatollah Sistani — Code of Practice (sistani.org)
- Strict: Minority scholars holding zero-tolerance on riba exposure
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HalalGauge surfaces published scholarly methodologies with full sourcing; it does not issue fatwa or certify any security as halal. Verify with a qualified scholar before investing.