Is Gerdau (GGB) stock Halal?

Gerdau is a leading Brazilian steel manufacturer, specializing in producing long steel products. Established in the early 20th century, this company has become a key player in the metallurgical industry with a diversified portfolio that spans across multiple continents. Gerdau's operations focus primarily on the production of rebar, wire rod, structural steel, and special steels, catering to sectors such as construction, automotive, industrial, and agricultural. For Muslim investors, though, the most pressing question is simpler: is Gerdau a Halal investment?

Is Gerdau Shariah compliant?

No. In the October 2026 screening Gerdau (GGB) does not pass AAOIFI screening: it fails the preference share screen. Extracting and selling oil, gas or materials is a permissible business, so companies like Gerdau 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 Gerdau pass the business activity test?

The activity screen is only part of the picture this month: Gerdau currently fails the preference share 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 Gerdau's income Halal?

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

Does Gerdau 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 $9.26B (market data as of 1 October 2026). Because the caps move with the share price, our Shariah Supervisory Board has GGB re-screened every month, and the result above always shows the latest verdict. Gerdau also fails the preference share screen this month.

Why do other halal screeners show a different verdict for Gerdau?

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?