Is WISeKey International (WKEY) stock Halal?

Wisekey International Holding AG, offered as an American Depositary Receipt (ADR), represents shares of the Swiss-based cybersecurity company on United States financial markets. The primary function of Wisekey is to provide pioneering solutions in digital identity management and security technologies. The company is at the forefront of securing digital data interactions, offering hardware and software solutions for cybersecurity, blockchain technologies, and the Internet of Things (IoT). For Muslim investors, though, the most pressing question is simpler: is WISeKey International a Halal investment?

Is WISeKey International 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 WISeKey International 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 WISeKey International pass the business activity test?

The activity screen is only part of the picture this month: WISeKey International 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 WISeKey International's income Halal?

No. WISeKey International's 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 WISeKey International meet AAOIFI's debt and investment ratio requirements?

Not in full. Interest bearing investments currently exceed 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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