Is Zai Lab Ltd. ZLAB stock halal to invest in?

No, as of August 2026, Zai Lab Ltd. stock (ZLAB) 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. Zai Lab Ltd. currently does not meet the threshold for the non-permissible income 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 Zai Lab Ltd. and discover Shariah compliant alternatives among the halal stocks in the Tabadulat app.

How often is Zai Lab Ltd. ZLAB reviewed for Shariah compliance?

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 reflects current financial data rather than an outdated assessment, and Tabadulat app users are notified if a holding in their portfolio becomes non-compliant.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

No, as of August 2026, Zai Lab Ltd. stock (ZLAB) 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. Zai Lab 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 Zai Lab Ltd. ZLAB pass the AAOIFI Interest Bearing Investments criteria?

Yes, as of August 2026, Zai Lab Ltd. stock (ZLAB) 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). Zai Lab 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 Zai Lab Ltd. ZLAB pass the AAOIFI Interest Bearing Debt criteria?

Yes, as of August 2026, Zai Lab Ltd. stock (ZLAB) passes 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. This cap limits shareholders' exposure to interest-based leverage. Zai Lab Ltd.'s interest-bearing debt is currently within the 30% threshold. Because market capitalisation changes daily, a company's debt ratio can drift toward or away from the limit even without new borrowing, which is why this screen is reassessed every month.

What is the dividend purification factor for Zai Lab Ltd. ZLAB stock?

Zai Lab Ltd. (ZLAB) 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 Zai Lab Ltd. returns to compliance in a future monthly screening, its purification factor will be published alongside its updated status in the Tabadulat app.

Does Zai Lab Ltd. ZLAB pass the AAOIFI Preference Share screen?

Yes, as of August 2026, Zai Lab Ltd. stock (ZLAB) 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. Zai Lab 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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Zai Lab Ltd.

NASDAQ

Shariah-Compliant

Not Shariah

ZLAB

About

Zai Lab Ltd.

ZLAB

Zai Lab Ltd. is a biopharmaceutical company dedicated to the development and commercialization of innovative therapies. Headquartered in Shanghai, China, Zai Lab's primary focus is on oncology, autoimmune, and infectious diseases, sectors critically important for addressing unmet medical needs. The company's portfolio includes a variety of promising investigational drugs in various stages of clinical development, as well as some commercialized products. Zai Lab distinguishes itself through partnerships with leading global pharmaceutical companies, enhancing its research and development capabilities. This strategic collaboration approach accelerates the introduction of breakthrough treatments to the China market, facilitating faster patient access to new medicines. Zai Lab plays a significant role in the global biopharmaceutical industry by not only advancing novel therapies in areas of high demand but also contributing to the international exchange of scientific knowledge and innovation. Its work is pivotal in addressing global health challenges, thus holding a vital position in both regional and global health sectors.

Sector:

Healthcare

Industry:

Biotechnology

Employees:

1869

Website:

https://www.zailaboratory.com

ZLAB

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Zai Lab Ltd.

About

Zai Lab Ltd.

ZLAB

Frequently asked questions

Is Zai Lab Ltd. ZLAB stock halal to invest in?

How often is Zai Lab Ltd. ZLAB reviewed for Shariah compliance?

Does Zai Lab Ltd. ZLAB pass the AAOIFI Non Permissible Income criteria?

Does Zai Lab Ltd. ZLAB pass the AAOIFI Interest Bearing Investments criteria?

Does Zai Lab Ltd. ZLAB pass the AAOIFI Interest Bearing Debt criteria?

What is the dividend purification factor for Zai Lab Ltd. ZLAB stock?

Does Zai Lab Ltd. ZLAB pass the AAOIFI Preference Share screen?

Can I buy Zai Lab (ZLAB) stock on Tabadulat?

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