Is Liberty Latin America (LILA) stock Halal?
Under AAOIFI Shariah Standard No. 21, a Halal stock keeps non-permissible income below 5% of revenue and interest-bearing debt and investments each below 30% of market capitalisation. Liberty Latin America Ltd. (LILA) does not meet the threshold for the interest-bearing investments and interest-bearing debt screens as of September 2026, so it is not Shariah compliant.
Liberty Latin America is a leading telecommunications company that operates across Latin America and the Caribbean. It provides a wide range of services, including digital television, broadband internet, and wireless and fixed telephony. The company's primary function is to offer connectivity solutions that empower communication in these regions, playing a significant role in bridging the digital divide. For Muslim investors, though, the most pressing question is simpler: is Liberty Latin America a Halal investment?
Is Liberty Latin America Shariah compliant?
Connecting people is a permissible business, so carriers and satellite operators like Liberty Latin America rarely trouble the activity screen. The exposure is infrastructure: networks are among the most capital hungry assets in any market, usually debt financed, and AAOIFI Shariah Standard No. 21 caps interest bearing borrowing at 30% of market capitalisation, the screen that decides most telecom verdicts.
Does Liberty Latin America pass the business activity test?
The activity screen is only part of the picture this month: Liberty Latin America currently fails the interest-bearing investments and interest-bearing debt screens, so the overall verdict is not compliant regardless of the business itself. The service itself, carrying calls and data, raises no Shariah objection; the scrutiny belongs to the debt financed network behind it.
Is Liberty Latin America's income Halal?
Yes, within AAOIFI's tolerance. Liberty Latin America's income from non-permissible sources stays below 5% of revenue in the September 2026 screening.
Does Liberty Latin America 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 LILA 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?



