Is Investing in Alibaba Stock Halal?

September 19, 2025

Islamic ruling on Alibaba stock: Analysis of its riba-based financial services, impermissible revenue streams, and Shariʿah-compliant alternatives.

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Alibaba stock is not halal for investment due to its significant involvement in interest-based financial services through Ant Group.

Praise be to Allah.

Islamic investment requires strict adherence to Shariʿah principles. Alibaba’s substantial stake in interest-based lending through Ant Group violates core prohibitions on riba (usury).

Is Alibaba Stock Permissible?

No.

Alibaba fails Sharīʿah screening due to:

33% ownership of Ant Group, which issues interest-based loans (Huabei, Jiebei).
Revenue from ribā exceeding 5% tolerance.
Debt ratios non-compliant with AAOIFI standards.

Evidence

From Quran

“Allah permits trade and forbids ribā.”
(Al-Baqarah 2:275)
Investing in entities profiting from interest opposes this command.

From Scholars

The Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) mandates:

Ribā-based income ≤5% of total revenue
Debt-to-assets ≤33%
Illiquid assets ≥20%
(AAOIFI Standard 21)
Alibaba violates these through Ant Group’s lending operations.

From Hadith

The Prophet ﷺ cursed:

“The one who consumes riba, the one who pays it, the one who records it, and the two who witness it.”
(Sahih Muslim 1598)

Shareholders profit from and thus indirectly “consume” riba.

Practical Guidance

1. Avoid Alibaba Stock

Divest if currently held.
Purify past dividends from ribā portions via charity.

2. **Choose Ḥalāl Alternatives**

Pure e-commerce firms: Without financial services (e.g., ḥalāl-certified retailers).
Islamic tech ETFs: e.g., Wahed Invest Halal Tech ETF (USA) or Iman Fund (Malaysia).
Sukuk/commodities: Sharīʿah-compliant bonds or gold ETFs.

3. Conduct Due Diligence

Verify screens via reputable agencies (e.g., Islamicly, IdealRatings).
Consult local scholars for portfolio reviews.

Bottom Line

Alibaba stock is haram due to its material involvement in riba. Islam requires investors to avoid not only direct sin but also enabling others’ disobedience. Prioritize ethically screened investments to safeguard your wealth and faith.