BABA
Alibaba Group Holding
Is BABA Halal?
E-commerce and cloud are generally permissible, but Alibaba's mixed digital, financial, media and VIE activity remains methodology-dependent.
What You Should Know
Alibaba operates e-commerce marketplaces, cloud computing, digital media, games, health services and Ant-related financial technology. Its fiscal year ended March 31, 2026 filing reports debt/assets of 13.62%, liquidity/assets of 15.02%, receivables plus cash/assets of 8.52% and interest/investment income of 8.55% of fiscal-year revenue. The filing does not allocate a universal prohibited-revenue numerator across all business lines, so financial-service contracts, media, games, health products and VIE activity require qualitative review.
⚠️ Concerns
- •Ant-related payments, lending, consumer finance and merchant-finance contracts require riba review
- •Interest and investment income is 8.55% of fiscal-year revenue and requires methodology-specific purification
- •Digital media, games, health products and marketplace merchant categories need qualitative classification
- •VIE, China regulatory, data-security, competition and governance risks remain material
- •Supply-chain labor, counterfeit-goods, privacy, cloud security and environmental impacts require review
Current quantitative Sharia screen
Based on 20-F figures for the period ended 2026-03-31; calculated 2026-07-14.
259,996 / 1,909,570
286,840 / 1,909,570
162,702 / 1,909,570
87,512 / 1,023,670
- Financial
- Fails
- Overall
- Fails
Debt/assets is 13.62%, liquidity/assets is 15.02% and receivables plus cash/assets is 8.52%; the examined FTSE financial ratios pass, but interest and investment income is 8.55% of fiscal-year revenue and exceeds the 5% activity benchmark used here.
- Financial
- Pass
- Overall
- Incomplete
Debt/assets is 13.62%, liquidity/assets is 15.02% and receivables plus cash/assets is 8.52%, below the examined MSCI total-assets limits; business-activity and income classification remains incomplete.
- Financial
- Pass
- Overall
- Incomplete
The examined financial ratios pass at debt/assets 13.62%, liquidity/assets 15.02% and receivables plus cash/assets 8.52%; the activity and income review remains incomplete and this is not an official classification of a foreign-listed security.
- Financial
- Not calculated
- Overall
- Incomplete
A properly licensed and reproducible historical market-cap series is not stored, and activity/income classification is incomplete, so market-cap methods are not estimated from a current spot price.
Business-activity disclosure
Alibaba operates e-commerce marketplaces, logistics, cloud computing, digital media and entertainment, online games, health services and Ant-related financial technology through a complex VIE and affiliate structure. Trade, logistics and cloud services are generally permissible, while lending, payments, media, games, health products, merchant categories and investments require methodology-specific review.
Limitation: The filing does not allocate all revenue and income by a universal prohibited-activity taxonomy, particularly for Ant-related finance, media, gaming, health, merchant categories and VIE or affiliate activity.
Purification
Alibaba discloses interest and investment income but does not prescribe a scholar-approved purification percentage; readers should follow the methodology and scholar they use.
Inputs, assumptions and primary sources
- Amounts are RMB millions from Alibaba's fiscal year ended March 31, 2026 Form 20-F and rounded to the nearest million.
- Debt includes current bank borrowings of RMB28,224 million, non-current bank borrowings of RMB47,450 million, unsecured senior notes of RMB117,485 million, convertible unsecured senior notes of RMB55,861 million and exchangeable bonds of RMB10,976 million.
- Cash is RMB131,530 million. Interest-bearing securities use RMB155,310 million of short-term investments; equity investments and non-interest-bearing balances are excluded.
- Accounts receivable uses RMB31,172 million of accounts receivable and contract assets, net. Fiscal-year consolidated revenue is RMB1,023,670 million.
- Alibaba reports RMB87,512 million of interest and investment income, net. The filing does not provide a universal prohibited-revenue numerator across all e-commerce, cloud, media, gaming, health, Ant-related and VIE activities.
This is a reproducible financial screen, not a fatwa. A failed total-assets screen can coexist with a pass under a market-cap methodology. ZakatInvest keeps the qualitative assessment separate so numerical thresholds do not erase material context.
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