What is Sociedad Química y Minera de Chile S.A.'s Shariah compliance score?

Sociedad Química y Minera de Chile S.A. (SQM) has a Shariah compliance score of 46/100 (Grade: C, Marginal). AAOIFI Standard No. 21 requires: (1) no primary involvement in prohibited activities like alcohol, gambling, or conventional banking, (2) debt-to-market-cap below 30%, (3) interest-bearing deposits below 30%, and (4) prohibited income below 5%.

Does Sociedad Química y Minera de Chile S.A. pass AAOIFI screening?

Sociedad Química y Minera de Chile S.A. (SQM) is rated Doubtful under AAOIFI Shariah screening, which is neither a clear pass nor a clear fail. AAOIFI Standard No. 21 requires: (1) no primary involvement in prohibited activities like alcohol, gambling, or conventional banking, (2) debt-to-market-cap below 30%, (3) interest-bearing deposits below 30%, and (4) prohibited income below 5%. SQM's debt-to-market-cap is 29.7%.

How much purification is needed for Sociedad Química y Minera de Chile S.A.?

Muslim investors purify the portion of dividends and realized gains that comes from non-permissible income by donating it to charity. HalalScreener's purification calculator at halalscreener.app/en/purification computes the percentage and amount for Sociedad Química y Minera de Chile S.A. (SQM) using the latest financial data.

Where can I screen Sociedad Química y Minera de Chile S.A. for Shariah compliance for free?

HalalScreener (halalscreener.app) offers free Shariah compliance screening for Sociedad Química y Minera de Chile S.A. (SQM) and 8,200+ securities. US-listed stocks and ETFs are screened under AAOIFI Standard No. 21. Bursa Malaysia securities carry the Securities Commission Malaysia's official status. Coins are screened separately, under published scholarly opinion. The verdict is free, with no credit card or signup required for basic screening. The compliance grade, score, and debt ratio are free too; the full ratio breakdown is part of Pro.

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Compliance Status

Doubtful

Screened on Oct 13, 2026 · AAOIFI Standard 21

Marginal

46Score

Is Sociedad Química y Minera de Chile S.A. (SQM) halal? Doubtful. Based on AAOIFI screening, Sociedad Química y Minera de Chile S.A. passes the business activity screen but has financial ratios approaching AAOIFI limits with a compliance score of 46/100 (Grade: C).

Quote this verdict

HalalScreener rates Sociedad Química y Minera de Chile S.A. (SQM) Doubtful, 46/100, grade C under AAOIFI Standard 21, screened Oct 13, 2026. Source: https://halalscreener.app/en/stock/SQM

AvoidBorderlineClean

Business activity

What the company sells is permissible.

Passed

Company debt

Close to the limit

How much the company borrows, compared to its total value. AAOIFI allows up to 30%.

29.7% of 30.0% limit

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The verdict above is final and free.

Pro members can verify every number behind it: interest-bearing deposits, prohibited income breakdown, and the full AAOIFI math.

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Screened according to AAOIFI Standard 21

What this means for you

You may own SQM, with caution

Its numbers sit close to AAOIFI limits. Cautious investors may prefer alternatives or ask a scholar first.

Purification amount is Pro

We have screened SQM's prohibited income, but the exact share you would need to purify is part of Pro.

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SQM: Is Sociedad Química y Minera de Chile S.A. Halal?

Sociedad Química y Minera de Chile S.A.

NYSEBasic MaterialsCL

$60.20

Market Cap: 17.2B

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About Sociedad Química y Minera de Chile S.A.

Sociedad Química y Minera de Chile S.A., commonly known as SQM, is a major global producer and distributor of a diverse array of chemical and mineral products. Its extensive offerings include specialized plant nutrition solutions, iodine and its various chemical compounds, lithium and its derivatives, potassium chloride and sulfate, and a range of industrial chemicals, alongside other related products and services. Among its key agricultural products are specialty plant nutrients like potassium nitrate, sodium nitrate, and sodium potassium nitrate, as well as customized blends and advanced fertilizers. The company also manufactures iodine and its derivatives, which are widely utilized across medical, pharmaceutical, agricultural, and industrial sectors. These applications encompass crucial ingredients for x-ray contrast agents, polarizing films essential for LCD and LED displays, various antiseptics, biocides, and disinfectants, components for pharmaceutical synthesis, electronic materials, and elements vital for pigments and dyes. Furthermore, SQM supplies lithium carbonates, which are indispensable for numerous applications. These range from electrochemical materials critical for battery manufacturing, frits for the ceramic and enamel industries, and specialized heat-resistant glass, to chemicals used in air conditioning systems, continuous casting powders for steel extrusion, and processing agents for primary aluminum smelting. Lithium carbonates are also employed in pharmaceuticals and as an ingredient in gunpowder production, in addition to serving as a base for other lithium derivatives. Additionally, the company provides lithium hydroxide, valued for its role in the lubricating greases industry and as a key material for battery cathodes. The company's portfolio extends to potassium chloride and potassium sulfate, which are essential for cultivating various crops such as corn, rice, sugar cane, soybeans, and wheat. SQM also produces industrial chemicals including sodium nitrate, potassium nitrate, potassium chloride, and solar salts, alongside a variety of other fertilizers and custom blends. With a significant global footprint, SQM operates across Chile, Latin America and the Caribbean, Europe, North America, and Asia. Sociedad Química y Minera de Chile S.A. was incorporated in 1968 and is headquartered in Santiago, Chile.

Sector: Basic Materials · Industry: Chemicals - Specialty

Why This Stock Is Doubtful

Interest-bearing debt is 29.7% of market cap, only 0.3 points below the 30% AAOIFI limit.

Stocks are marked Doubtful when financial ratios pass but approach AAOIFI thresholds. Consider consulting a qualified scholar for a definitive ruling.

Shariah Compliance Status

AAOIFI Standard 21Updated Oct 13, 2026

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Screened according to AAOIFI Standard 21

Compliance History

Doubtfulnow
since Sep 2026
Halal
until the change above
Doubtful
until the change above
Halal
until the change above
Doubtful
until the change above
Halal
until the change above

Tracked since May 2026. Updates automatically on each re-screen.

Fiscal: Q2 2026Data source: FMP

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Frequently Asked Questions

Is Sociedad Química y Minera de Chile S.A. (SQM) halal to invest in?

Sociedad Química y Minera de Chile S.A. (SQM) is rated Doubtful under AAOIFI Standard 21. It passes the business activity screen but one or more financial ratios are approaching (though not yet exceeding) the AAOIFI thresholds (30% for debt and interest deposits, 5% for prohibited income). Consult a qualified Islamic finance scholar for a personal ruling.

Why did Sociedad Química y Minera de Chile S.A. get a C compliance rating?

Sociedad Química y Minera de Chile S.A. (SQM) received a grade of C (Marginal) based on three AAOIFI Standard 21 financial ratios: debt-to-market-cap of 29.7% (limit 30%). The grade reflects the margin of safety across all three ratios relative to their thresholds.

What could change Sociedad Química y Minera de Chile S.A.'s Shariah verdict?

Sociedad Química y Minera de Chile S.A.'s verdict is re-evaluated at each annual re-screen. Three events could change it: (1) the debt-to-market-cap ratio crossing 30%, typically from new debt issuance or a major drop in share price; (2) interest-bearing deposits exceeding 30% of market cap; or (3) prohibited revenue (alcohol, gambling, conventional finance, etc.) exceeding 5% of total revenue. Verdict flips are tracked in the compliance history section above.

How often is Sociedad Química y Minera de Chile S.A. re-screened for Shariah compliance?

Sociedad Química y Minera de Chile S.A. (SQM) is re-screened annually using the most recent full-year financial data from SEC filings. HalalScreener also triggers an on-demand re-screen whenever the stored data is more than 7 days old, ensuring the ratios reflect the latest available financial statements. Last screened: Oct 13, 2026.

Screened according to AAOIFI Standard No. 21 · For informational purposes only. Consult a qualified Islamic finance advisor before investing.

Disclaimer: This screening is for informational purposes only and does not constitute financial, legal, or religious advice. Compliance is evaluated using AAOIFI financial standards (debt, deposits, and prohibited income ratios) and publicly available data. Ethical, political, social, or environmental considerations are outside the scope of this screening. Individual scholars and methodologies may differ. Always consult a qualified Islamic finance advisor before making investment decisions.