Is Cross Timbers Royalty Trust (CRT) stock Halal?

Cross Timbers Royalty Trust is a financial instrument designed to manage and distribute income derived from oil and gas interests. The trust primarily functions by holding a variety of net profit interests, primarily located in regions known for their rich natural resources, such as Texas, Oklahoma, and New Mexico. A distinctive feature of this trust is its focus on providing income-generating opportunities through the extraction and sale of natural resources without operating the wells directly. Before any of that matters to a Muslim investor, one question comes first: is Cross Timbers Royalty Trust stock Halal?

Is Cross Timbers Royalty Trust Shariah compliant?

No. In the October 2026 screening Cross Timbers Royalty Trust (CRT) does not pass AAOIFI screening: it fails the non-permissible income screen. For a resources company like Cross Timbers Royalty Trust, 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 Cross Timbers Royalty Trust pass the business activity test?

The activity screen is only part of the picture this month: Cross Timbers Royalty Trust currently fails the non-permissible income 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 Cross Timbers Royalty Trust's income Halal?

No. Cross Timbers Royalty Trust's income from impermissible sources currently exceeds AAOIFI's 5% revenue ceiling, which makes the stock non-compliant on this screen regardless of the others. The screen is reassessed monthly, so the status can change when new financial statements arrive.

Does Cross Timbers Royalty Trust meet AAOIFI's debt and investment ratio requirements?

Yes. Both caps hold this month: interest bearing investments and interest bearing debt each stay below 30% of market capitalisation, measured against a market capitalisation of $71M (market data as of 1 October 2026). Because the caps move with the share price, our Shariah Supervisory Board has CRT re-screened every month, and the result above always shows the latest verdict.

Why do other halal screeners show a different verdict for Cross Timbers Royalty Trust?

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?