Is Gerdau SA GGB stock halal to invest in?

No, as of August 2026, Gerdau SA stock (GGB) 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. Gerdau SA currently does not meet the threshold for the interest-bearing debt and preference share screens. 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 Gerdau SA and discover Shariah compliant alternatives among the halal stocks in the Tabadulat app.

How often is Gerdau SA GGB reviewed for Shariah compliance?

Tabadulat reviews Gerdau SA GGB 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 Monthly screening ensures the status shown for Gerdau SA reflects current financial data rather than an outdated assessment, and Tabadulat app users are notified if a holding in their portfolio becomes non-compliant.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 Gerdau SA GGB pass the AAOIFI Non Permissible Income criteria?

Yes, as of August 2026, Gerdau SA stock (GGB) passes the AAOIFI non-permissible income screen. Under AAOIFI Shariah Standard No. 21, income from impermissible sources (such as interest or riba, conventional financial services, alcohol, gambling, or tobacco) must remain below 5% of a company's total revenue. Gerdau SA's income from non-permissible sources is currently within this 5% threshold. 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 Gerdau SA GGB pass the AAOIFI Interest Bearing Investments criteria?

Yes, as of August 2026, Gerdau SA stock (GGB) passes the AAOIFI interest-bearing investments screen. Under AAOIFI Shariah Standard No. 21, the cash a company places in interest-earning instruments (such as conventional deposits, bonds, treasury bills and money-market funds) must remain below 30% of its market capitalisation. This limit ensures shareholders are not materially profiting from riba (interest). Gerdau SA's interest-bearing investments are currently within the 30% threshold. 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 Gerdau SA GGB pass the AAOIFI Interest Bearing Debt criteria?

No, as of August 2026, Gerdau SA stock (GGB) 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. Gerdau SA'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 Gerdau SA GGB stock?

Gerdau SA (GGB) 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 Gerdau SA returns to compliance in a future monthly screening, its purification factor will be published alongside its updated status in the Tabadulat app.

Does Gerdau SA GGB pass the AAOIFI Preference Share screen?

No, as of August 2026, Gerdau SA stock (GGB) does not pass 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. Gerdau SA's capital structure currently includes impermissible preference share features, which makes the stock non-compliant on this criterion. The screen is verified in each monthly review, so the status can change if the company's capital structure changes.

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Gerdau SA

NYSE

Shariah-Compliant

Not Shariah

GGB

About

Gerdau SA

GGB

Gerdau S.A. is a leading Brazilian steel manufacturer, specializing in producing long steel products. Established in the early 20th century, this company has become a key player in the metallurgical industry with a diversified portfolio that spans across multiple continents. Gerdau's operations focus primarily on the production of rebar, wire rod, structural steel, and special steels, catering to sectors such as construction, automotive, industrial, and agricultural. Its extensive production capacity and geographical footprint allow it to respond efficiently to market demands in the Americas and beyond. Gerdau plays a significant role in the steel supply chain by capitalizing on its recycling operations, transforming scrap metal into new products, thereby prioritizing sustainability and cost-effective production. As one of the largest steel suppliers in the world, Gerdau significantly impacts the infrastructure development and manufacturing industries, offering versatile solutions that drive economic growth. The company’s commitment to innovation and efficiency underscores its importance within the global steel market, making it an essential contributor to sector advancements and ecological resource management.

Sector:

Basic Materials

Industry:

Steel

Employees:

30000

Website:

https://www2.gerdau.com

GGB

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Gerdau SA

About

Gerdau SA

GGB

Frequently asked questions

Is Gerdau SA GGB stock halal to invest in?

How often is Gerdau SA GGB reviewed for Shariah compliance?

Does Gerdau SA GGB pass the AAOIFI Non Permissible Income criteria?

Does Gerdau SA GGB pass the AAOIFI Interest Bearing Investments criteria?

Does Gerdau SA GGB pass the AAOIFI Interest Bearing Debt criteria?

What is the dividend purification factor for Gerdau SA GGB stock?

Does Gerdau SA GGB pass the AAOIFI Preference Share screen?

Can I buy Gerdau (GGB) stock on Tabadulat?

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