Is Polar Power, Inc. POLA stock Halal to invest in?

No, as of September 2026, Polar Power, Inc. stock (POLA) is not currently classified as a Shariah compliant stock. This verdict follows the screening methodology of AAOIFI (the Accounting and Auditing Organization for Islamic Financial Institutions), whose Shariah Standard No. 21 is the leading global benchmark for screening Halal stocks. To qualify as Halal under this standard, a company must keep non-permissible income below 5% of total revenue, keep both interest-bearing investments and interest-bearing debt below 30% of market capitalisation, and have no impermissible preference share structure. Polar Power, Inc. currently does not meet the threshold for the interest-bearing debt screen. Because screenings are refreshed monthly as new financial reports are published, a non-compliant stock can regain compliant status if its financial structure changes. You can track the latest status of Polar Power, Inc. and discover Shariah compliant alternatives among the Halal stocks in the Tabadulat app.

How often is Polar Power, Inc. POLA reviewed for Shariah compliance?

Tabadulat reviews Polar Power, Inc. POLA for Shariah compliance every month. Each review applies the AAOIFI Shariah Standard No. 21 methodology, screening the company's business activities, non-permissible income, interest-bearing investments, interest-bearing debt, and preference shares, against the company's latest available financial data. The process operates under the direct supervision of Tabadulat's dedicated Shariah Supervisory Board of Islamic finance scholars. Because compliance depends on financial ratios that move with market capitalisation and reported results, a stock's status can change from one review to the next. Monthly screening ensures the status shown for Polar Power, Inc. reflects current financial data rather than an outdated assessment, and Tabadulat app users are notified if a holding in their portfolio becomes non-compliant.

Does Polar Power, Inc. POLA pass the AAOIFI Non Permissible Income criteria?

Yes, as of September 2026, Polar Power, Inc. stock (POLA) passes the AAOIFI non-permissible income screen. AAOIFI permits a small tolerance because large companies rarely avoid incidental impermissible income entirely, most often interest on cash balances. The ceiling is 5% of total revenue, and Polar Power, Inc. sits inside it in the latest screening. Even permissible levels of incidental impure income should still be purified: investors donate the corresponding share of dividends to charity, as reflected in the stock's purification factor. This screen is reassessed monthly using the company's latest financial disclosures.

Does Polar Power, Inc. POLA pass the AAOIFI Interest Bearing Investments criteria?

Yes, as of September 2026, Polar Power, Inc. stock (POLA) passes the AAOIFI interest-bearing investments screen. AAOIFI caps interest-earning holdings at 30% of market capitalisation so that shareholders do not materially profit from Riba. Measured against the latest data, Polar Power, Inc.'s interest-bearing investments sit within the limit. Because the ratio is measured against market capitalisation, it can move with the share price as well as the balance sheet, which is why Tabadulat rescreens the stock every month.

Does Polar Power, Inc. POLA pass the AAOIFI Interest Bearing Debt criteria?

No, as of September 2026, Polar Power, Inc. stock (POLA) does not pass the AAOIFI interest-bearing debt screen. Under AAOIFI Shariah Standard No. 21, a company's borrowings that accrue interest (conventional bank loans, bonds and similar Riba-based financing) must remain below 30% of its market capitalisation. Polar Power, Inc.'s interest-bearing debt currently exceeds this 30% limit, meaning the company relies on Riba-based financing beyond the level AAOIFI permits for a Halal investment. A company can return to compliance by reducing debt or through changes in market capitalisation, and the screen is reassessed monthly.

What is the dividend purification factor for Polar Power, Inc. POLA stock?

Polar Power, Inc. (POLA) is currently classified as not Shariah compliant, so no dividend purification factor applies, because purification factors are calculated only for stocks that pass the AAOIFI screens. Purification (Tazkiyah) is the practice of donating to charity the small portion of dividend income that stems from incidental non-permissible sources, such as interest earned on a compliant company's cash deposits. For non-compliant stocks the issue is not purification but eligibility: under AAOIFI Shariah Standard No. 21 the stock does not currently qualify as a Halal investment. If Polar Power, Inc. returns to compliance in a future monthly screening, its purification factor will be published alongside its updated status in the Tabadulat app.

Does Polar Power, Inc. POLA pass the AAOIFI Preference Share screen?

Yes, as of September 2026, Polar Power, Inc. stock (POLA) passes the AAOIFI preference share screen. AAOIFI Shariah Standard No. 21 prohibits investing in preference shares because they grant holders guaranteed or priority rights to dividends and capital ahead of ordinary shareholders, a structure that conflicts with the Shariah principle that investors should share profit and loss in proportion to their ownership. Polar Power, Inc. has no impermissible preference share structure affecting its ordinary shares, so the stock is compliant on this criterion. Like all AAOIFI screens, this is verified in each monthly review.

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Is Polar Power (POLA) stock Halal?

NASDAQ

Shariah-Compliant

Not Shariah

As of the September 2026 screening, Polar Power, Inc. (POLA) does not meet the AAOIFI Shariah Standard No. 21 threshold for the interest-bearing debt screen, so the stock is not currently classified as Shariah compliant. It is re-screened every month and can regain compliance if its financial structure changes.

Sector:

Industrials

Industry:

Electrical Equipment & Parts

Employees:

Website:

https://www.polarpower.com

Market cap:

$6M

P/E ratio:

Dividend yield:

52-week range:

$1.31 - $5.75

Data as of:

3 September 2026

Screening history:

September 2026: FAIL

Polar Power designs and manufactures specialized power systems. The company's core products include DC generators, hybrid power systems, and other advanced power supply solutions tailored for various applications. These systems are primarily used in telecommunications, military, and renewable energy sectors, where reliable and efficient power sources are crucial. Polar Power's offerings stand out due to their ability to integrate seamlessly with solar panels and battery storage, providing eco-friendly and cost-effective energy solutions. For Muslim investors, though, the most pressing question is simpler: is Polar Power a Halal investment?

Is Polar Power Shariah compliant?

For industrial companies like Polar Power, the product is rarely the problem; aircraft, vehicles and machinery are permissible. The exposure is leverage: fleets and factories are financed, and the 30% cap that AAOIFI Shariah Standard No. 21 places on interest bearing debt is the screen that decides most verdicts in this sector.

Does Polar Power pass the business activity test?

The activity screen is only part of the picture this month: Polar Power currently fails the interest-bearing debt screen, so the overall verdict is not compliant regardless of the business itself. The activity itself raises no Shariah objection; the scrutiny belongs to the financing.

Is Polar Power's income Halal?

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

Does Polar Power 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?

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