Is Zain (ZAIN) Halal?

KUW Communication Services Kuwait $2.4B
✗ NOT HALAL
Confidence: 90/100
Zain (ZAIN) is Not Halal under AAOIFI Standard 21. The company's debt ratio of 89.0% exceeds the 30% threshold, indicating excessive interest-bearing debt relative to market capitalization. Zain operates in the Communication Services sector.

Shariah Screening — 5 Standards

Based on financial data from December 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 89.0%
/ 30%
18.2%
/ 30%
22.2%
/ 30%
0.39%
/ 5%
✗ NOT HALAL
DJIM 89.0%
/ 33%
18.2%
/ 33%
22.2%
/ 33%
0.39%
/ 5%
✗ NOT HALAL
MSCI 36.2%
/ 33%
7.4%
/ 33%
9.0%
/ 33%
0.39%
/ 5%
✗ NOT HALAL
S&P 89.0%
/ 33%
18.2%
/ 33%
22.2%
/ 33%
0.39%
/ 5%
✗ NOT HALAL
FTSE 36.2%
/ 33%
7.4%
/ 33%
9.0%
/ 50%
0.39%
/ 5%
✗ NOT HALAL

Financial Highlights

P/E Ratio
11.1
Forward: 11.1
EPS
$0.05
Dividend Yield
1077.0%
Payout: 109.1%
P/B Ratio
1975.1
EV/EBITDA
6.2
EV: $4.6B
Revenue
$2.3B
Beta
0.1
Low volatility
Current Ratio
1.1

Profitability

Gross Margin 65.0%
Operating Margin 22.0%
Net Margin 10.4%
Return on Equity (ROE) 14.4%
Return on Assets (ROA) 4.8%

Cash Flow & Balance Sheet

Operating Cash Flow$622M
Free Cash Flow$348M
Total Debt$2.1B
Debt-to-Equity109.1
Current Ratio1.1
Total Assets$5.9B

Price & Trading

Last CloseKWF 557.00
50-Day MAKWF 536.58
200-Day MAKWF 520.95
Avg Volume4.1M
Beta0.1
52-Week Range
KWF 441.00
KWF 569.00

About Zain (ZAIN)

CEO
Mr. Bader Bin Nasser Mohammed Al-Kharafi
Sector
Communication Services
Industry
Telecom Services
Country
Kuwait
Exchange
KUW
Market Cap
$2.4B
Currency
KWF

Mobile Telecommunications Company K.S.C.P., together with its subsidiaries, provides mobile telecommunication services. The company purchases, delivers, installs, manages, and maintains mobile telephone systems. It also offers WiMAX services, network consultancy and cloud solutions, and tower infrastructure services. In addition, the company invests in investment securities. It operates in Kuwait, Jordan, Iraq, Bahrain, the Kingdom of Saudi Arabia, Lebanon, Sudan, and South Sudan. The company was incorporated in 1983 and is headquartered in Kuwait City, Kuwait.

Related Halal Stocks in Communication Services

Frequently Asked Questions

Is Zain (ZAIN) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), Zain is Not Halal. The company fails one or more screening criteria. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is Zain's debt ratio?

Zain's debt ratio is 89.0% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 36.2%.

What are Zain's key financial metrics?

Zain has a market capitalization of $2.4B, trailing P/E ratio of 11.1, and revenue of $2.3B. The company maintains a gross margin of 65.0% and a net margin of 10.4%. Return on equity stands at 14.4%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.