.svg)
.svg)
.svg)
.svg)
.svg)
Is Plains All American Pipeline (PAA) 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. Plains All American Pipeline LP (PAA) does not meet the threshold for the interest-bearing debt screen as of September 2026, so it is not Shariah compliant.
Plains All American Pipeline is a master limited partnership that operates within the energy infrastructure sector. It primarily focuses on the transportation, storage, and marketing of crude oil, refined products, and natural gas liquids (NGLs). The company plays a crucial role in the North American energy landscape, with a vast network of pipeline systems that serve major oil-producing regions including the Permian Basin, Rockies, and Canadian oil sands. For Muslim investors, though, the most pressing question is simpler: is Plains All American Pipeline a Halal investment?
Is Plains All American Pipeline Shariah compliant?
Extracting and selling oil, gas or materials is a permissible business, so companies like Plains All American Pipeline 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 Plains All American Pipeline pass the business activity test?
The activity screen is only part of the picture this month: Plains All American Pipeline currently fails the interest-bearing debt screen, 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 Plains All American Pipeline's income Halal?
Yes, within AAOIFI's tolerance. Plains All American Pipeline's income from non-permissible sources stays below 5% of revenue in the September 2026 screening.
Does Plains All American Pipeline 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.
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?
Frequently asked questions
Is Plains All American Pipeline LP PAA stock Halal to invest in?
.svg)
.svg)
How often is Plains All American Pipeline LP PAA reviewed for Shariah compliance?
Does Plains All American Pipeline LP PAA pass the AAOIFI Non Permissible Income criteria?
Does Plains All American Pipeline LP PAA pass the AAOIFI Interest Bearing Investments criteria?
Does Plains All American Pipeline LP PAA pass the AAOIFI Interest Bearing Debt criteria?
What is the dividend purification factor for Plains All American Pipeline LP PAA stock?
Does Plains All American Pipeline LP PAA pass the AAOIFI Preference Share screen?
Open your account.
Deposit.
