Is Open Text Corp. OTEX stock halal to invest in?

Open Text Corporation is a global software company that focuses on enterprise information management. The company's primary purpose is to provide software solutions that enable organizations to manage, secure, and leverage their data and content efficiently. Open Text offers a comprehensive range of products, including enterprise content management, digital asset management, business network, compliance software, and analytics. These tools help businesses improve productivity, reduce costs, and maintain regulatory compliance by streamlining the flow of information. For Muslim investors, though, the most pressing question is simpler: is Open Text a Halal investment?

Is Open Text Shariah compliant?

Technology companies rarely fail AAOIFI screening on what they sell. Software, hardware and digital services are permissible business activities, so for a company like Open Text 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 Open Text pass the business activity test?

The activity screen is only part of the picture this month: Open Text currently fails the interest-bearing debt screen, 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 Open Text's income Halal?

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

Does Open Text meet AAOIFI's debt and investment ratio requirements?

Not in full. Interest bearing debt currently exceeds the 30% cap, 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.

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