Is Metagenomi Therapeutics (MGX) stock Halal?

Metagenomi Therapeutics is a biotechnology company at the forefront of developing advanced gene editing technologies. The primary function of the company is to enable precise and efficient genetic modifications through its proprietary platform, which harnesses naturally occurring enzymes. This offers broad applications across multiple sectors, notably in healthcare, agriculture, and industrial biotechnology. Through its innovative approach, Metagenomi aims to address genetic disorders, improve crop resilience, and enhance bio-based manufacturing processes. For Muslim investors, though, the most pressing question is simpler: is Metagenomi Therapeutics a Halal investment?

Is Metagenomi Therapeutics Shariah compliant?

No. In the October 2026 screening Metagenomi Therapeutics (MGX) does not pass AAOIFI screening: it fails the non-permissible income and interest-bearing investments screens. Technology companies rarely fail AAOIFI screening on what they sell. Software, hardware and digital services are permissible business activities, so for a company like Metagenomi Therapeutics the Shariah question moves to the balance sheet: how much of its market value sits in interest bearing debt, how much of its cash earns Riba in conventional deposits, and whether incidental income from impermissible sources creeps past 5% of revenue. These are exactly the ratios AAOIFI Shariah Standard No. 21 polices, and they move every month with the share price.

Does Metagenomi Therapeutics pass the business activity test?

The activity screen is only part of the picture this month: Metagenomi Therapeutics currently fails the non-permissible income and interest-bearing investments screens, so the overall verdict is not compliant regardless of the business itself. The watch item for technology names is incidental: cash returns and platform content can carry impermissible elements, which AAOIFI tolerates only below the thresholds.

Is Metagenomi Therapeutics' income Halal?

No. Metagenomi Therapeutics' 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 Metagenomi Therapeutics meet AAOIFI's debt and investment ratio requirements?

Not in full. Interest bearing investments currently exceed the 30% cap, measured against a market capitalisation of $40M (market data as of 1 October 2026), while the other ratio stays within it. One breach is enough to fail the screening; the ratios are reassessed monthly under our Shariah Supervisory Board.

Why do other halal screeners show a different verdict for Metagenomi Therapeutics?

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 Why a Halal Stock Screener Matters for Halal Investing