AAOIFI Shari'a screening · Reviewed July 16, 2026
Is MSFT halal in 2026?
Microsoft (MSFT) passes AAOIFI Shari'a screening as of 2026 with a 94/100 compliance score. Verdict, ratio breakdown, purification estimate, and the scholarly basis.
Yes. Microsoft (MSFT) is currently halal under AAOIFI Shari'a Standard No. 21 as of July 2026, with a HalalScreener compliance score of 94 out of 100. Its software, cloud, and hardware businesses are permissible, interest-bearing debt is about 1.5% of market cap, and non-permissible income is roughly 0.3% of revenue. Purify about that share of your dividends and gains; many investors round up to about 1% as a precaution.
AAOIFI ratio breakdown
| Ratio | Value | Threshold | Verdict |
|---|---|---|---|
| Interest-bearing debt / Market cap | ~1.5% | <30% | Pass |
| Interest-bearing deposits and securities / Market cap | ~3.2% | <30% | Pass |
| Non-permissible income / Revenue | ~0.3% | <5% | Pass |
Recommended purification: approximately 1% of dividends received and realized capital gains.
Microsoft earns its revenue from Windows, Office and Microsoft 365, the Azure cloud platform, LinkedIn, Xbox, and Surface hardware. These are permissible activities under AAOIFI Shari'a Standard No. 21, with no alcohol, gambling, conventional finance, or other prohibited business lines.
On the quantitative screens Microsoft passes clearly. Interest-bearing debt is about 1.5% of market capitalization, well under the 30% AAOIFI ceiling, and interest-bearing deposits and securities are about 3.2% of market cap. Non-permissible income, essentially interest on Microsoft's cash and investment portfolio, is approximately 0.3% of revenue, far inside the 5% threshold.
Microsoft pays a regular dividend, so purification applies to both dividends and realized gains. The precise figure tracks the roughly 0.3% non-permissible-income ratio, though many investors round up to about 1% for caution. HalalScreener's purification calculator computes the exact amount for your holding.
Methodology
Verdict applies the methodology of AAOIFI Shari'a Standard No. 21: Financial Papers (Shares and Bonds): qualitative screening for prohibited business activities, plus three quantitative caps. Interest-bearing debt < 30% of market cap, interest-bearing securities < 30%, and non-permissible income < 5% of revenue.
Sources and scholars
- AAOIFI Shari'a Standard No. 21: Financial Papers (Shares and Bonds)
- Wahed Invest Shari'a Supervisory Board
- Amana Mutual Funds (Saturna) Shari'a Supervisory Board
Frequently asked
Is MSFT halal in 2026?
Yes. Microsoft's software, cloud, and hardware businesses are permissible, interest-bearing debt is about 1.5% of market cap (well under 30%), and non-permissible income is roughly 0.3% of revenue (well under 5%). HalalScreener scores it 94 out of 100.
How much should I purify from Microsoft dividends?
About 0.3% of the dividends and realized capital gains you receive, matching Microsoft's non-permissible-income ratio. Many investors round up to roughly 1% as a precaution. HalalScreener's purification calculator gives an exact figure.
Does Microsoft's gaming or LinkedIn business affect its ruling?
No. Xbox gaming, LinkedIn, and cloud services are permissible activities. Microsoft has no prohibited core business lines, so it passes the AAOIFI qualitative screen, and its financial ratios pass the quantitative screen.