Is Boeing Stock Halal? The Defense Contractor Dilemma

Quick Verdict

Boeing (BA) is generally considered NOT HALAL or at minimum DOUBTFUL due to its significant defense and weapons manufacturing segment. Unlike technology companies that provide neutral services to governments, Boeing manufactures weapons systems, military aircraft, and guided missiles — activities that most Islamic scholars classify as impermissible for investment.

Boeing's Two Businesses

Boeing operates in two distinct worlds:

• Commercial Airplanes (~45% of revenue): The 737, 767, 777, 787 — jets sold to airlines worldwide. Entirely permissible.
• Defense, Space & Security (~40% of revenue): F/A-18 fighter jets, Apache helicopters, Chinook helicopters, ballistic missiles, satellite systems for the US military and allied governments.
• Global Services (~15%): Maintenance, upgrades, training for both commercial and defense customers.

The defense segment alone typically represents 35-45% of Boeing's total revenue — far exceeding the 5% threshold for impermissible business activities.

The Islamic Weapons Manufacturing Question

Islamic scholars generally hold that manufacturing weapons intended to kill people — particularly offensive military weapons like fighter jets and missiles — is not permissible as an investment activity. The principle of la darar (avoiding harm) applies to business investments, not just personal actions.

Some scholars distinguish between defensive weapons (for protection) and offensive weapons (for aggression), but drawing this line for a specific company is practically impossible — the same F-15 can be used defensively or offensively depending on the buyer.

Financial Screening

• Debt / Market Cap: Very high (>50% of market cap) ❌
• Interest Income / Total Revenue: Minimal ✅
• Defense Revenue / Total Revenue: ~40% ❌

Boeing also has a severe balance sheet problem — enormous debt from the 737 MAX crisis and COVID-era disruption. It fails on both business activity and debt screens.

Screening Agencies' Verdict

• Zoya App — Not Compliant ❌
• MSCI Islamic Index — Excluded ❌
• All major halal ETFs — Not held ❌

Bottom Line

Boeing fails Islamic screening for two reasons: its weapons manufacturing constitutes a major portion of revenue, and its debt ratios are outside acceptable limits. Muslim investors interested in the aerospace sector should look at pure-play commercial aviation companies or aerospace suppliers that don't produce weapons systems.