Is Abbott Stock Halal?

Is Abbott Stock Halal?

Key Points

  • After examining Abbott’s source of revenue, the ratio of interest expense to total operating expense, and ESG impact we are comfortable investing in Abbott from a Halal perspective.

Company Overview

Abbott Laboratories is an American multinational medical devices and health care company with headquarters in Abbott Park, Illinois, United States.

How much of Abbott Laboratories revenue comes from haram?

Abbott Laboratories revenue source is categorized into four segments. Established Pharmaceutical Products, Nutritionals, Diagnostics, and Medical Devices.

Practical Islamic finance concludes

None of Abbott laboratories, Revenue comes from anything inherently haram.

Does Abbott laboratories rely on interest to operate?

Recent Quarter ended 3/31/2022Fiscal Year ended 12/31/2021Fiscal Year ended 12/31/2020
Interest Expense131533546
Total Operating Expense399616,11314,248
Interest Expense / Total Operating Expense3.28%3.31%3.83%

*Numbers in millions, of U.S. dollars 

Practical Islamic finance concludes:

Riba is used but not relied upon in Abbott laboratories operations.

What is Abbott Laboratories Environmental, Social, and Governance (ESG) impact?


No notable environmental highlights.


Abbott laboratories has a Glassdoor rating of 3.9 out of 5.0. Glassdoor is a trusted website where current and former employees can review and rate their companies.


In 2021, two of Abbott Laboratories’ subsidiaries, Arriva Medical LLC and Alere Inc, had to pay $160M to resolve claims that they had fraudulently billed Medicare for glucose monitors. Supposedly, Arriva used free glucose monitors to entice patients into placing more orders, then took kickbacks on the increased sales. The company was also accused of charging Medicare for glucose monitors given to ineligible patients, including patients that had expired. 

These issues had happened before the acquisition by Abbott. No new allegations have come forth in the period Abbott has owned them

Practical Islamic finance concludes:

Abbott Laboratories has a net positive ESG impact. 

Comfort Rating

From Abbott Laboratories business, financial, and ESG reviews, Practical Islamic Finance rates Abbott laboratories, stock as

Comfortable to invest in from a Halal perspective.


10Q March 2022

10K December 2021

Abbott Investor Relations

Abbott Glassdoor Rating

Abbott Litigation Wiki

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