Amazon.com, Inc. (AMZN) is one of the most searched stocks among Muslim investors asking "Is AMZN halal?" We screened AMZN against all five major Shariah screening methodologies — AAOIFI, Dow Jones Islamic Market (DJIM), FTSE Shariah, MSCI Islamic, and S&P Shariah — using real financial data from the Halal Terminal API.

Quick Verdict: AMZN is COMPLIANT (5/5 methodologies pass)

Amazon.com, Inc. passes all five Shariah screening methodologies. Business activity is permissible and financial ratios are within limits. Purification rate: 0.5%.

Methodology-by-Methodology Results

Different Shariah screening standards use different financial thresholds and denominators. Here are AMZN's results across all five:

Methodology Result Notes
AAOIFI PASS Debt/assets at 14.2% — well below the 30% limit. All ratios pass comfortably.
DJIM PASS Debt/market-cap 2.8%, cash/market-cap 2.9%, receivables/market-cap 1.7% — all far below 33% thresholds.
FTSE PASS Debt/assets 14.2% under 50%. Cash+receivables/assets 23.3% under 50%.
MSCI PASS All asset-based ratios under 33.33% thresholds with significant margins.
S&P PASS All market-cap-based ratios under 3% — extremely clean compliance profile.

What Does Amazon.com Do?

Amazon operates the world's largest e-commerce marketplace, Amazon Web Services (AWS) cloud computing platform, digital advertising, streaming media (Prime Video), and grocery retail (Whole Foods). The vast majority of Amazon's revenue comes from permissible activities: online retail, cloud infrastructure, and advertising. However, Amazon does sell alcohol through its marketplace and Whole Foods stores, and Amazon Lending provides small business loans. These prohibited revenue streams represent less than 5% of total revenue, keeping Amazon below the impermissible income threshold under most screening standards.

Business activity screening result: PASS — E-commerce and cloud computing — permissible primary activity. Impermissible revenue (alcohol sales, lending) below 5% threshold.

Financial Ratio Breakdown

Shariah screening evaluates a company's financial structure to ensure it doesn't rely excessively on interest-bearing debt or hold too much cash in interest-bearing accounts. Here are AMZN's actual ratios compared to the thresholds:

Ratio AMZN Actual Threshold
Debt / Total Assets 14.2% < 30% (AAOIFI) / < 33% (MSCI)
Debt / Market Cap 2.8% < 33% (DJIM, S&P)
Cash / Total Assets 14.8% < 30% (AAOIFI) / < 33% (MSCI)
Cash / Market Cap 2.9% < 33% (DJIM, S&P)
Receivables / Total Assets 8.5% < 30% (AAOIFI) / < 33% (MSCI)
Receivables / Market Cap 1.7% < 33% (DJIM, S&P)
Interest Income / Revenue 0.5% < 5% (all methodologies)

Purification Rate

AMZN's purification rate is 0.5%. This means for every $1,000 in dividends received from AMZN, you should donate $5.00 to charity to purify the impermissible income portion (interest income relative to total revenue).

What is purification?

Even Shariah-compliant companies may earn small amounts of interest income. The purification rate tells you what percentage of dividends to donate to charity to "cleanse" your income. Read our full purification guide →

Detailed Analysis

Amazon passes all five Shariah screening methodologies with comfortable margins. Its diversified revenue streams — dominated by permissible e-commerce and cloud computing — keep it well within compliance. The purification rate of just 0.5% is one of the lowest among mega-cap stocks, meaning for every $1,000 in dividends (Amazon recently initiated dividends), only $5 needs purification. Amazon's interest income relative to revenue is minimal at 0.5%, reflecting that its financial operations are incidental rather than core to the business.

Screen AMZN Yourself via API

Get real-time screening results for AMZN (or any stock) using the Halal Terminal API:

curl https://api.halalterminal.com/api/screen/AMZN \
  -H "X-API-Key: YOUR_KEY"

Or in Python:

import requests

resp = requests.post(
    "https://api.halalterminal.com/api/screen/AMZN",
    headers={"X-API-Key": "YOUR_KEY"}
)
data = resp.json()

print(f"Compliant: {data['is_compliant']}")
print(f"AAOIFI:    {data['aaoifi_compliant']}")
print(f"DJIM:      {data['djim_compliant']}")
print(f"Purification: {data['purification_rate']:.1%}")

The API returns compliance status across all 5 methodologies, actual financial ratios, purification rate, and business activity screening — all in a single call.

Two ways to screen

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Key Takeaways