Is Borr Drilling (BORR) stock Halal?

Borr Drilling is an international offshore drilling contractor, specializing in the leasing and operation of drilling rigs for oil and gas production. The company's main function is to provide high-quality drilling services to major oil companies across various regions, catering especially to the exploration and extraction sectors of the energy industry. Before any of that matters to a Muslim investor, one question comes first: is Borr Drilling stock Halal?

Is Borr Drilling Shariah compliant?

For a resources company like Borr Drilling, AAOIFI Shariah Standard No. 21 has little quarrel with the product; the scrutiny falls on the financing. Heavy machinery and long project cycles are usually funded with debt, and the standard tolerates interest bearing borrowing only below 30% of market capitalisation.

Does Borr Drilling pass the business activity test?

The activity screen is only part of the picture this month: Borr Drilling currently fails the interest-bearing debt screen, so the overall verdict is not compliant regardless of the business itself. The activity itself, extracting and selling resources, raises no Shariah objection; the scrutiny belongs to the financing.

Is Borr Drilling's income Halal?

Yes, within AAOIFI's tolerance. Borr Drilling's income from non-permissible sources stays below 5% of revenue in the September 2026 screening.

Does Borr Drilling meet AAOIFI's debt and investment ratio requirements?

Not in full. Interest bearing debt currently exceeds the 30% cap, while the other ratio stays within it. One breach is enough to fail the screening; the ratios are reassessed monthly under our Shariah Supervisory Board.

Tabadulat is an ADGM regulated brokerage whose license covers Shari'a Compliant Regulated Activities, as the FSRA permission names them. New to the terminology? Gharar and Maysir, Sukuk, Zakat and purification are all explained in plain English.

New to the four screens? Read AAOIFI Standards Explained: What Makes a Stock Halal?