Is Walmart Stock Halal? A Comprehensive Shariah Compliance Analysis

Did you know that the global halal economy is projected to reach $7.7 trillion by 2025? With increasing Muslim interest in ethical finance, investors want stocks that align with their faith. But navigating halal investing isn’t always straightforward.

One major question Muslim investors ask is: Is Walmart stock halal? Given its retail dominance and diverse product offerings, Walmart presents both opportunities and challenges for Shariah-compliant investors. In this guide, I’ll break down Walmart’s business model, financial health, and ethical considerations to help you make an informed decision.

Keynote: Is Walmart Stock Halal?

Walmart’s stock is considered “doubtful” regarding Shariah compliance due to its involvement in non-halal products like alcohol and pork. Platforms like Musaffa and Amal Invest flag Walmart’s compliance status as questionable.

Halal Stock Criteria: The 3-Part Test

To determine if a stock is halal, it must pass three key screening criteria.

Business Activities

Shariah law prohibits investing in businesses that derive significant revenue from haram activities, including:

• Alcohol and intoxicants
• Gambling and betting
• Pork and non-halal meat products
• Adult entertainment
• Interest-based financial services (conventional banks and insurance)

For a stock to be halal, its haram-related revenue must remain below 5% of total earnings.

Financial Health

Shariah compliance requires that companies meet strict financial criteria:

Metric	Shariah Threshold	Walmart (2025)
Debt-to-Asset Ratio	≤ 33%	28%
Interest Income (% of revenue)	≤ 5%	0.185%

Walmart’s financials meet these thresholds, suggesting it passes the financial screening.

Ethical Practices

Beyond numbers, halal investing prioritizes ethical business conduct, including:

• Fair labor policies – avoiding exploitation or unfair wages.
• Environmental responsibility – investing in sustainable operations.
• Social impact – ensuring business practices benefit communities.

While Walmart has faced criticism for labor policies, recent efforts—such as wage increases and sustainability initiatives—show progress.

Walmart Under the Microscope: Business Model Breakdown

Core Operations

Walmart, the world’s largest retailer, operates through various retail formats, including:

• Supercenters & Discount Stores – Groceries, apparel, electronics, home goods.
• E-Commerce – A growing segment, with Walmart.com seeing a 15% YoY growth in 2025.
• Sam’s Club – A membership-based warehouse model.
• Financial Services – Includes Walmart Money Centers and partnerships with banks.

Revenue breakdown:

• Product sales: 90% of total revenue
• Memberships & advertising: 10%

Potential Red Flags

While most of Walmart’s products are halal, concerns exist:

• Alcohol sales: Estimated at $18.5 billion annually (2.9% of revenue)
• Pork sales: Approximately $5.5 billion (0.8% of revenue)

This totals 3.7% of Walmart’s revenue—below the 5% threshold used in halal investing.

Financial Deep Dive: Does Walmart Meet Shariah Standards?

Debt Analysis

Walmart’s debt-to-asset ratio is 28%, well below the 33% Shariah limit, making it a financially compliant investment.

Interest Income

Interest-based income is negligible, accounting for just 0.185% of total revenue, well below the 5% limit. This suggests Walmart passes the financial compliance test.

Company	Debt-to-Asset Ratio	Interest Income (% of revenue)
Walmart	28%	0.185%
Costco	14%	0.5%
Amazon	25%	0.3%

Ethical Gray Areas: Labor and Environmental Concerns

Labor Practices

Walmart has faced criticism for low wages and anti-union policies. However, in 2025, the company raised wages and improved working conditions. Ethical concerns remain, but improvements indicate a commitment to change.

Sustainability Efforts

Walmart has pledged 50% clean energy usage by 2030 and aims for 100% recyclable packaging by 2025. While these efforts align with Islamic values, critics argue more progress is needed.

Expert Verdicts: What Scholars and Tools Say

Conflicting Opinions

• Zoya App: Rates Walmart as “borderline” due to alcohol sales.
• Musaffa: Approves Walmart with purification required.
• Islamicly: Lists Walmart as doubtful.

The “5% Rule” in Practice

If you invest in Walmart, scholars recommend purifying dividends by donating the percentage of earnings derived from haram revenue. For Walmart, 3.7% of dividends should be donated to charity.

Platform	Rating	Conditions
Zoya App	Borderline	Alcohol sales present
Musaffa	Approved	Requires purification

Clearing Up Halal Investing Myths

Common Questions

• Can I invest in Walmart if less than 5% of revenue is haram?
  • Yes, with purification.
• Are Walmart dividends halal?
  • Yes, but purify a portion equivalent to haram revenue.

Misconceptions Debunked

• “All retail stocks are haram.” → False. Many retailers pass halal screens.
• “Debt makes a company haram.” → False. As long as debt remains under 33%, it’s acceptable.

Your Action Plan: Steps for Halal-Conscious Investors

Due Diligence Checklist

1. Screen business activities using Zoya App or Musaffa.
2. Analyze financial ratios to ensure compliance.
3. Consult an Islamic financial advisor before investing.

Alternatives to Walmart

For those seeking halal-friendly retail investments:

• Halal ETFs: SP Funds S&P 500 Shariah ETF, Wahed Invest Halal ETF.
• Retail Picks:
  • Costco: Lower alcohol sales but still above 5% haram threshold.
  • Amazon: No alcohol sales, but concerns about interest income.

Conclusion: Balancing Faith and Finance

So, is Walmart stock halal? The answer is conditionally yes—if you purify earnings from its minor haram revenue (3.7%). Walmart’s financials meet Shariah standards, but ethical concerns remain.

Halal investing isn’t just about rules—it’s about aligning your money with your values. As your financial choices evolve, stay informed, screen regularly, and invest with intention. Because at the end of the day, your wealth reflects your faith.

Walmart Stock (FAQs)