Is Gran Tierra Energy (GTE) stock Halal?

Gran Tierra Energy is a leading oil and gas exploration and production company that primarily focuses on operations in Colombia. The company is dedicated to the development and extraction of hydrocarbon resources, aiming to effectively contribute to the energy needs of the region while maintaining a commitment to environmental responsibility. Gran Tierra Energy's portfolio includes extensive landholdings with proven and probable reserves, allowing it to sustain and grow production capabilities. For Muslim investors, though, the most pressing question is simpler: is Gran Tierra Energy a Halal investment?

Is Gran Tierra Energy Shariah compliant?

Extracting and selling oil, gas or materials is a permissible business, so companies like Gran Tierra Energy 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 Gran Tierra Energy pass the business activity test?

The activity screen is only part of the picture this month: Gran Tierra Energy 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 Gran Tierra Energy's income Halal?

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

Does Gran Tierra Energy meet AAOIFI's debt and investment ratio requirements?

No. Both ratios currently breach the 30% caps: 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 GTE re-screened 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 four screens? Read AAOIFI Standards Explained: What Makes a Stock Halal?