GLOB
Globant S.A.
Is GLOB Halal?
Digital-engineering and IT-services firm that builds software, AI, and digital products for enterprise clients — a permissible technology-services business with modest leverage.
What You Should Know
Globant S.A. is a publicly-traded technology-services company that provides digital-engineering, software-development, AI, cloud, and design services, building custom software products and digital transformations for enterprise clients across industries. Providing software-engineering and IT consulting services is a general-purpose technology activity that is unambiguously permissible at the activity level under standard Sharia methodology; Globant earns fees for engineering work rather than from any impermissible activity. The financial screen is the primary consideration: Globant carries modest debt, including a credit facility used for working capital and acquisitions, so the debt-to-market-cap ratio should be verified against the 33% Sharia threshold at the time of investment, though the company is profitable and cash-generative. Subject to that verification, most major Sharia advisory boards classify Globant as permissible with purification of small interest-income components.
⚠️ Concerns
- •Debt-to-market-cap ratio should be verified against the 33% Sharia threshold at the time of investment — Globant carries some interest-bearing debt used for working capital and acquisitions; this is the primary Sharia-screening consideration
- •Any interest-bearing borrowings are conventional-debt instruments — investors who object to such issuance should weigh this even where the debt ratio passes the 33% screen
- •As an acquisitive IT-services firm, Globant's leverage, goodwill, and receivables can shift with deal activity, so the financial screen should be re-verified following material transactions — IT-services firms typically carry higher receivables balances
- •Interest income from cash balances and the receivables-to-assets ratio should be confirmed against the preferred board's thresholds at the time of investment
Similar Stocks
Want to screen more assets?
Use our interactive Halal Checker to screen any stock, ETF, or crypto instantly.
Go to Halal Checker →