Is Companhia Siderurgica Nacional (SID) stock Halal?

Companhia Siderurgica Nacional represents shares of the Companhia Siderúrgica Nacional (CSN), one of Brazil's leading steel manufacturers. This American Depositary Receipt (ADR) trades primarily on the New York Stock Exchange, making access to CSN's equity simple for U.S.-based investors. CSN operates one of the most integrated steel complexes in South America, serving industries such as automotive, construction, and home appliances, and is a pivotal player in Brazil's infrastructure and industrial sectors. For Muslim investors, though, the most pressing question is simpler: is Companhia Siderurgica Nacional a Halal investment?

Is Companhia Siderurgica Nacional Shariah compliant?

No. In the October 2026 screening Companhia Siderurgica Nacional (SID) does not pass AAOIFI screening: it fails the interest-bearing investments and interest-bearing debt screens. Extracting and selling oil, gas or materials is a permissible business, so companies like Companhia Siderurgica Nacional rarely stumble on the activity screen. The pressure point is capital structure: energy is a capital hungry industry that borrows heavily, and AAOIFI Shariah Standard No. 21 caps interest bearing debt at 30% of market capitalisation, a line that moves as commodity cycles move the share price.

Does Companhia Siderurgica Nacional pass the business activity test?

The activity screen is only part of the picture this month: Companhia Siderurgica Nacional currently fails the interest-bearing investments and interest-bearing debt screens, 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 Companhia Siderurgica Nacional's income Halal?

Yes, within AAOIFI's tolerance. Companhia Siderurgica Nacional's income from non-permissible sources stays below 5% of revenue in the October 2026 screening.

Does Companhia Siderurgica Nacional meet AAOIFI's debt and investment ratio requirements?

No. Both ratios currently breach the 30% caps, measured against a market capitalisation of $1.41B (market data as of 1 October 2026): interest bearing investments and interest bearing debt each exceed the limit AAOIFI permits for a Halal investment. The ratios move with the share price as well as the balance sheet, and our Shariah Supervisory Board has SID re-screened every month.

Why do other halal screeners show a different verdict for Companhia Siderurgica Nacional?

Screeners can disagree without either being wrong. AAOIFI Shariah Standard No. 21, which Tabadulat applies, measures interest bearing debt and investments against market capitalisation with a 30% ceiling. MSCI and FTSE measure them against total assets with a 33% ceiling, and S&P and Dow Jones Islamic use a multi year average of market capitalisation. Data dates differ too, because each provider reads filings and prices on its own schedule. The same company can therefore pass one standard and fail another in the same month. Tabadulat publishes one answer, the AAOIFI result as of October 2026, and re-screens it every month.

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 screening method? Read AAOIFI Standards Explained: What Makes a Stock Halal?