Is Amazon Stock Halal? A Detailed Analysis of Its Compliance with Islamic Finance Principles

Is Amazon stock halal

Amazon is a huge company that does a lot of technology activities and online shopping. They offer many things, like e-commerce, cloud computing, e-readers, streaming videos, and gadgets like Echo. They’re also known for being all around the world, inventing new things, and caring about the environment.

Now, the question is, ‘Is Amazon Stock halal or haram?’ To figure this out, we need to see if Amazon follows the rules of halal investing. Halal investing means not getting involved with companies that do things like charge interest, keep their financial activities secret, or sell and promote things that are not allowed in Islam, like alcohol and gambling.

To decide if Amazon’s stock is okay for Muslim investors, we use a process explained by a reputable Islamic scholar, Justice Mufti Muhammad Taqi Usmani. This process looks at what Amazon does for business, where it gets its money from, how much debt it has compared to what it owns, and how much of its assets are related to accruing interest.


Amazon is one of the world’s largest technology and e-commerce companies. Among the many products and services it offers are e-commerce, cloud computing with AWS (Amazon Web Service), Kindle e-readers, streaming with Prime Video, hardware devices like the Echo, and more. Amazon’s qualities include global operations, technical advancements, environmental sustainability initiatives, and a sizable and diverse workforce. 

Is Amazon stock halal?

Is Amazon Stock Halal?

Before determining whether Amazon stock is permissible for Muslim investors, we need to assess whether the company’s activities align with the key guidelines for halal investments. These guidelines involve avoiding investments in companies engaged in interest-based transactions, lacking transparency in financial dealings (gharar) and selling or promoting haram products and services, such as alcohol, pork, gambling, and adult content.

Moreover, we will utilize the screening procedure developed by Justice Mufti Muhammad Taqi Usmani, the Chairman of the Shariah Board at the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI). The screening procedure suggests that investors should check the following: the company’s business activities, income generated from non-Shariah-compliant investments, its interest-bearing debt to total assets ratio, and its interest-bearing securities to total assets ratio to determine the halal status of stock.


Amazon Business Activities

Amazon is primarily a technology company with a diversified business portfolio. This includes e-commerce retail, cloud computing (Amazon Web Services), digital streaming services like Amazon Prime Video and Amazon Music, logistics and delivery, smart devices such as Amazon Echo and Kindle, subscription services, and the sale of groceries and fresh food through Amazon Fresh and Whole Foods Market. Notably, e-commerce and cloud computing are among the company’s most prominent and profitable sectors.

While Amazon’s diversified business portfolio itself is not automatically forbidden (haram), you might worry about whether the content or products within it are truly permissible (halal). For instance, in their physical stores, they sell items like alcohol, pork, and tobacco, which are considered haram. Additionally, Amazon offers entertainment content that may not be in line with Sharia law, making it haram for its subscribers.

Amazon’s Non-Sharia-Compliant Income

It’s challenging to determine how much money Amazon earns from activities that don’t comply with Sharia law. This includes revenue from sources like interest on their savings and investments, potential gambling in games on Twitch (which Amazon owns), the sale of alcohol and tobacco on their website, as well as the sale of digital content and books with adult themes. The company does not provide a breakdown of its revenue by source.

However, an online stock screener that aids Muslim investors in identifying Shariah-compliant investment opportunities, Musaffa, asserts that Amazon’s non-Shariah-compliant activities constitute only 0.51% of its total revenue, with 24.14% of its overall revenue potentially coming from questionable activities, while it generates 75.34% in halal income.

Since Amazon’s revenue from non-halal and questionable activities exceeds the 5% threshold in AAOIFI Sharia standards for halal stocks, we recommend caution when considering this stock for investment and suggest looking for a halal alternative. The standard states that:

“The amount generated from the prohibited component does not exceed 5% of the total income of the corporation irrespective of the income being generated by undertaking a prohibited activity, by ownership of a prohibited asset or in some other way. If a source of income is not properly disclosed then more effort is to be exerted for identification thereof giving due care and caution in this respect”

Amazon’s Interest-bearing debt

Islamic law forbids running a company primarily on debt and depending on interest-based loans. According to AAOIFI Sharia standards, for a company to be considered halal, its total interest-bearing loans should not surpass 30% of its total market value. The standards states: 

“That the collective amount raised as loan on interest – whether long-term or short-term debt- does not exceed 30% of the market capitalization of the corporation, knowingly that raising loans on interest is prohibited whatsoever the amount is” 

Based on Amazon’s 2023 2nd quarter report, as shared by Musaffa, Amazon had a total interest-bearing debt of $76.55 billion and a 36-month average market capitalization of $1.44 trillion. This sums up to a 5.33% interest-bearing debt ratio.

An interest-bearing debt ratio of 5.33% suggests that Amazon’s reliance on interest-bearing debt is relatively low compared to its overall market value, which may be considered favorable from a financial and Sharia-compliance perspective, as it adheres to the AAOIFI Sharia standards.

Amazon’s Interest bearing securities

According to Amazon’s 2023 2nd quarter report, as shared by Musaffa, Amazon’s total interest-bearing securities and assets amount to $64.51 billion, and it has a 36-month average market capitalization of $1.44 trillion, resulting in an interest and asset ratio of 4.47%.

This suggests that around 4.47% of Amazon’s total assets are invested in interest-bearing securities, generating interest income. This aligns with AAOIFI Sharia standards, which state:

“That the total amount of interest-taking deposits, whether short, medium or long-term, shall not exceed 30% of the market capitalization of total equity, knowingly that interest-taking deposits are prohibited whatsoever the collective amount is”

It is worth noting that  AAOIFI’s standard is just one of several different Shariah standards that are used by Islamic investors around the world. Some Islamic scholars may have stricter or more lenient criteria for determining if a stock is halal. 

Our findings indicate that trading Amazon stocks demands caution due to areas of concern in its business activities. Amazon’s financial structure and compliance with Sharia standards, particularly in terms of debt and interest-bearing assets, demonstrate efforts to align with Sharia-compliant principles. Therefore, we advise investors to exercise caution when considering Amazon as a potential investment option and recommend consulting with a qualified Islamic scholar.


In the quest to find an answer to the question ‘Is Amazon stock halal?’ the information provided in this article suggests that investing in Amazon stock may not be considered strictly halal (permissible) according to the guidelines set forth by Justice Mufti Muhammad Taqi Usmani and the AAOIFI Sharia standards. Several factors supporting this conclusion include Amazon’s involvement in diverse business activities like e-commerce and cloud computing, its sale of forbidden products like alcohol and pork, and the provision of entertainment content not conforming to Sharia law. Additionally, Amazon’s non-Sharia compliant income surpasses the 5% threshold set by AAOIFI Sharia standards, but its interest-bearing debt ratio and interest-bearing securities and asset ratio remain relatively low, staying within the AAOIFI limit of 30%. 

In summary, based on the provided information and the AAOIFI Sharia standards, Amazon’s stock appears to have certain areas of concern in terms of compliance with Sharia-compliant principles, especially regarding the nature of its business activities and its non-Shariah-compliant income. However, Amazon’s financial structure seems to be relatively in line with Islamic finance principles, particularly concerning its debt and interest-bearing assets.

Ultimately, the decision to invest in Amazon stock from an Islamic perspective should be made with caution, and it is advisable to consult with a qualified Islamic scholar who may have more specific and nuanced criteria for determining the permissibility of such investments.


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