Is San Juan Basin Royalty Trust (SJT) stock Halal?

San Juan Basin Royalty Trust is a unique financial asset in the form of a royalty trust, primarily focusing on oil and natural gas resources. Its main function is to collect and distribute royalty income derived from interests in the San Juan Basin, an area historically rich in natural gas and located in northwestern New Mexico. The trust receives royalties from several oil and gas properties, making it highly sensitive to fluctuations in commodity prices. Before any of that matters to a Muslim investor, one question comes first: is San Juan Basin Royalty Trust stock Halal?

Is San Juan Basin Royalty Trust Shariah compliant?

For a resources company like San Juan Basin Royalty Trust, AAOIFI Shariah Standard No. 21 has little quarrel with the product; the scrutiny falls on the financing. Heavy machinery and long project cycles are usually funded with debt, and the standard tolerates interest bearing borrowing only below 30% of market capitalisation.

Does San Juan Basin Royalty Trust pass the business activity test?

Yes. In the September 2026 screening San Juan Basin Royalty Trust holds an overall PASS, which a stock only earns when its core business clears the activity screen. The activity itself, extracting and selling resources, raises no Shariah objection; the scrutiny belongs to the financing.

Is San Juan Basin Royalty Trust's income Halal?

Yes, within AAOIFI's tolerance. San Juan Basin Royalty Trust's income from non-permissible sources stays below 5% of revenue in the September 2026 screening, and the small impure portion is handled through purification: the factor of 99.76% tells holders of SJT what share of each dividend to keep and what remainder to donate to charity.

Does San Juan Basin Royalty Trust meet AAOIFI's debt and investment ratio requirements?

Yes. Both caps hold this month: interest bearing investments and interest bearing debt each stay below 30% of market capitalisation. Because the caps move with the share price, our Shariah Supervisory Board has SJT re-screened every month, and the result above always shows the latest verdict.

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?