Is Loop Industries, Inc. (LOOP) Stock Halal or Haram?
Loop Industries, Inc. (LOOP) - Not Halal (Non-Compliant)
Loop Industries, Inc. (LOOP) is classified as Not Halal (Non-Compliant) according to AAOIFI Shariah screening standards. This assessment is based on business activity screening and financial ratio analysis using the AAOIFI methodology.
Business Activity Screen
Sector
Basic Materials
Industry
Specialty Chemicals
Result
Pass
Reason
The sector "Basic Materials" and industry "Specialty Chemicals" are not in the excluded categories.
Financial Ratios
Debt Ratio
Value: 4.8% | Threshold: 30% | Result: Pass
Cash & Interest-bearing Securities Ratio
Value: 1.7% | Threshold: 30% | Result: Pass
Non-Permissible Income Ratio
Value: 45.9% | Threshold: 5% | Result: Fail
Dividend Purification
Purification percentage: 45.91%.Based on the company's financial statements, approximately 45.91% of dividend income should be donated to charity for purification. This is derived from identified interest income (45.91% of total income). Some scholars may differ on the exact calculation method.
About Loop Industries, Inc.
Loop Industries, Inc., a technology company, focuses on depolymerizing waste polyethylene terephthalate (PET) plastics and polyester fibers into its base building block monomers. The company's technology depolymerizes plastic bottles, packaging, and textiles, such as carpets and clothing into base building block monomers, dimethyl terephthalate, and monoethylene glycol. Its polymerized monomers are used to create virgin-quality PET resins for use in food-grade plastic packaging, such as plastic bottles for water and carbonated soft drinks, containers for food, and other consumer products; and polyester fibers, including textiles, clothing, and apparel. Loop Industries, Inc. was founded in 2010 and is headquartered in Terrebonne, Canada.
Frequently Asked Questions
Is Loop Industries, Inc. (LOOP) stock halal to invest in?
According to AAOIFI Shariah screening standards, Loop Industries, Inc. (LOOP) is currently classified as Not Halal (Non-Compliant). This is based on both business activity and financial ratio screening.
Based on the company's financial statements, approximately 45.91% of dividend income should be donated to charity for purification. This is derived from identified interest income (45.91% of total income). Some scholars may differ on the exact calculation method.
Uses quarterly data
About Loop Industries, Inc.
Loop Industries, Inc., a technology company, focuses on depolymerizing waste polyethylene terephthalate (PET) plastics and polyester fibers into its base building block monomers. The company's technology depolymerizes plastic bottles, packaging, and textiles, such as carpets and clothing into base building block monomers, dimethyl terephthalate, and monoethylene glycol. Its polymerized monomers are used to create virgin-quality PET resins for use in food-grade plastic packaging, such as plastic bottles for water and carbonated soft drinks, containers for food, and other consumer products; and polyester fibers, including textiles, clothing, and apparel. Loop Industries, Inc. was founded in 2010 and is headquartered in Terrebonne, Canada.
CanadaNASDAQBasic Materials
Screened using AAOIFI Standard No. 21 on October 20, 2026. Financial ratios compared against market capitalization. Different methodologies may produce different results. Learn how we screen.
Screened using AAOIFI Shariah Standard No. 21 (3 ratios). Debt and interest-bearing deposits must each be under 30% of market capitalization, and non-permissible income under 5% of total income. This screening is for educational purposes only and does not constitute a fatwa or religious ruling. Results are based on publicly available financial data and automated analysis. Users should consult qualified Islamic scholars and financial advisors for personal investment decisions. Financial data may be delayed or incomplete. Past compliance does not guarantee future status.
Verdict history
Free with an account.
No verdict changes recorded since first screened on Aug 20, 2026. We started recording changes on Oct 19, 2026.
Dates are when Mizaan recorded the change. Tracked and watched stocks are re-checked weekly; other stocks are re-screened on demand.
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Frequently Asked Questions
According to AAOIFI Shariah screening standards, Loop Industries, Inc. (LOOP) is currently classified as Not Halal (Non-Compliant). This is based on both business activity and financial ratio screening.
Loop Industries, Inc.'s interest income ratio is 1.7% of total revenue. AAOIFI standards require this to be below 30%.
LOOP is screened using AAOIFI Standard No. 21, which involves two checks: business activity screening (ensuring the company's core business is permissible in Islam) and financial ratio screening (checking debt, interest income, and cash ratios against defined thresholds). AAOIFI is the most widely recognized standard for Islamic finance.
Loop Industries, Inc.'s compliance status is reviewed whenever new financial data becomes available, typically after quarterly or annual earnings reports. Market cap changes can also affect financial ratio screening results. Mizaan refreshes screening data periodically to reflect the latest filings.
You can save LOOP to your Mizaan portfolio to track its compliance status over time. Mizaan will update the screening whenever new financial data is available, so you always have the latest result.
Dividends from Loop Industries, Inc. require purification. Approximately 45.91% of dividend income should be donated to charity to cleanse earnings from non-permissible sources such as interest income.
Yes, Zakat is generally due on stock holdings. The calculation depends on your school of thought (madhab) and whether you hold shares for trading or long-term investment. Use Mizaan's Zakat calculator to compute your obligation based on your specific madhab and holding intent.
Does Loop Industries, Inc. have any interest income?
Loop Industries, Inc.'s interest income ratio is 1.7% of total revenue. AAOIFI standards require this to be below 30%.
What guidelines are used to determine if LOOP stock is Shariah-compliant?
LOOP is screened using AAOIFI Standard No. 21, which involves two checks: business activity screening (ensuring the company's core business is permissible in Islam) and financial ratio screening (checking debt, interest income, and cash ratios against defined thresholds). AAOIFI is the most widely recognized standard for Islamic finance.
How often is Loop Industries, Inc. stock reviewed for Shariah compliance?
Loop Industries, Inc.'s compliance status is reviewed whenever new financial data becomes available, typically after quarterly or annual earnings reports. Market cap changes can also affect financial ratio screening results. Mizaan refreshes screening data periodically to reflect the latest filings.
How can I stay updated on Loop Industries, Inc.'s compliance status?
You can save LOOP to your Mizaan portfolio to track its compliance status over time. Mizaan will update the screening whenever new financial data is available, so you always have the latest result.
Are dividends from Loop Industries, Inc. stock considered halal?
Dividends from Loop Industries, Inc. require purification. Approximately 45.91% of dividend income should be donated to charity to cleanse earnings from non-permissible sources such as interest income.
Do I need to pay Zakat on my Loop Industries, Inc. shares?
Yes, Zakat is generally due on stock holdings. The calculation depends on your school of thought (madhab) and whether you hold shares for trading or long-term investment. Use Mizaan's Zakat calculator to compute your obligation based on your specific madhab and holding intent.
