Is Melco Resorts & Entertainment Ltd. MLCO stock halal to invest in?

No, as of August 2026, Melco Resorts & Entertainment Ltd. stock (MLCO) 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. Melco Resorts & Entertainment Ltd. currently does not meet the threshold for the non-permissible income and interest-bearing debt 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 Melco Resorts & Entertainment Ltd. and discover Shariah compliant alternatives among the halal stocks in the Tabadulat app.

How often is Melco Resorts & Entertainment Ltd. MLCO reviewed for Shariah compliance?

Tabadulat reviews Melco Resorts & Entertainment Ltd. MLCO 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 Melco Resorts & Entertainment Ltd. reflects current financial data rather than an outdated assessment, and Tabadulat app users are notified if a holding in their portfolio becomes non-compliant.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 Melco Resorts & Entertainment Ltd. MLCO pass the AAOIFI Non Permissible Income criteria?

No, as of August 2026, Melco Resorts & Entertainment Ltd. stock (MLCO) does not pass 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. Melco Resorts & Entertainment Ltd.'s income from non-permissible sources currently exceeds this 5% ceiling, which makes the stock non-compliant on this criterion regardless of how it performs on the other screens. The screen is reassessed monthly, so the status can change when the company releases new financial statements.

Does Melco Resorts & Entertainment Ltd. MLCO pass the AAOIFI Interest Bearing Investments criteria?

Yes, as of August 2026, Melco Resorts & Entertainment Ltd. stock (MLCO) 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). Melco Resorts & Entertainment Ltd.'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 Melco Resorts & Entertainment Ltd. MLCO pass the AAOIFI Interest Bearing Debt criteria?

No, as of August 2026, Melco Resorts & Entertainment Ltd. stock (MLCO) 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. Melco Resorts & Entertainment Ltd.'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 Melco Resorts & Entertainment Ltd. MLCO stock?

Melco Resorts & Entertainment Ltd. (MLCO) 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 Melco Resorts & Entertainment Ltd. returns to compliance in a future monthly screening, its purification factor will be published alongside its updated status in the Tabadulat app.

Does Melco Resorts & Entertainment Ltd. MLCO pass the AAOIFI Preference Share screen?

Yes, as of August 2026, Melco Resorts & Entertainment Ltd. stock (MLCO) 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. Melco Resorts & Entertainment Ltd. 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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Melco Resorts & Entertainment Ltd.

NASDAQ

Shariah-Compliant

Not Shariah

MLCO

About

Melco Resorts & Entertainment Ltd.

MLCO

Melco Resorts & Entertainment Limited ADR represents shares in Melco Resorts & Entertainment Limited, a prominent developer, owner, and operator of casino gaming and entertainment resort facilities throughout Asia. The ADR allows U.S. investors easier access to invest in this foreign company. Melco is particularly influential in Macau, one of the world's gambling capitals, and operates integrated resorts like City of Dreams and Studio City, which combine luxury accommodations with premier gaming spaces, entertainment options, and retail shopping centers. The company is known for its stylish and innovative approach to hospitality and entertainment, appealing to high-end clientele and leisure travelers alike. In the financial markets, Melco ADRs provide investors exposure to the dynamic and rapidly evolving Asian gaming and leisure sector, particularly within the premium segments. By trading on the NASDAQ, Melco ADRs benefit from the liquidity and regulatory oversight of American financial markets, making them an accessible form of participation in the thriving entertainment and tourism industries in Asia.

Sector:

Consumer Cyclical

Industry:

Resorts & Casinos

Employees:

21784

Website:

https://www.melco-resorts.com

MLCO

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Melco Resorts & Entertainment Ltd.

About

Melco Resorts & Entertainment Ltd.

MLCO

Frequently asked questions

Is Melco Resorts & Entertainment Ltd. MLCO stock halal to invest in?

How often is Melco Resorts & Entertainment Ltd. MLCO reviewed for Shariah compliance?

Does Melco Resorts & Entertainment Ltd. MLCO pass the AAOIFI Non Permissible Income criteria?

Does Melco Resorts & Entertainment Ltd. MLCO pass the AAOIFI Interest Bearing Investments criteria?

Does Melco Resorts & Entertainment Ltd. MLCO pass the AAOIFI Interest Bearing Debt criteria?

What is the dividend purification factor for Melco Resorts & Entertainment Ltd. MLCO stock?

Does Melco Resorts & Entertainment Ltd. MLCO pass the AAOIFI Preference Share screen?

Can I buy Melco Resorts & Entertainment (MLCO) stock on Tabadulat?

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