Is Imperial Oil (IMO) stock Halal?

Imperial Oil is a leading integrated energy company based in Canada, with a heritage dating back to 1880. Operating across the entire energy value chain, its primary focus is the exploration, production, and sale of crude oil and natural gas. Before any of that matters to a Muslim investor, one question comes first: is Imperial Oil stock Halal?

Is Imperial Oil Shariah compliant?

Yes. In the October 2026 screening Imperial Oil (IMO) passes AAOIFI Shariah Standard No. 21: the business activity screen and every financial ratio screen hold. For a resources company like Imperial Oil, 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 Imperial Oil pass the business activity test?

Yes. In the October 2026 screening Imperial Oil holds an overall PASS, which a stock only earns when its core business clears the activity screen. The activity itself, extracting and selling resources, raises no Shariah objection; the scrutiny belongs to the financing.

Is Imperial Oil's income Halal?

Yes, within AAOIFI's tolerance. Imperial Oil's income from non-permissible sources stays below 5% of revenue in the October 2026 screening, and the small impure portion is handled through purification: the factor of 99.06% tells holders of IMO what share of each dividend to keep and what remainder to donate to charity. On a dividend yield of around 1.97%, the purification amount is modest but real.

Does Imperial Oil 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 $61.2B (market data as of 1 October 2026). Because the caps move with the share price, our Shariah Supervisory Board has IMO re-screened every month, and the result above always shows the latest verdict.

Why do other halal screeners show a different verdict for Imperial Oil?

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?