Is Oracle Stock Halal?

May 16, 2022

Table of Contents

Key Points

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

Company Overview

Oracle Corporation is an American multinational computer technology corporation headquartered in Austin, Texas. Oracle provides products and services that address enterprise information technology environments.

How much of Oracle Corporation’s revenue comes from haram?

Oracle Corporations’ source of revenue is categorized into four segments.

Cloud Services & License Support, Cloud License & on-premise license, Hardware, and Services.

Practical Islamic finance concludes

None of Oracle Corporations Revenue comes from anything inherently haram.

Does Oracle Corporation rely on interest to operate?

	Recent Quarter ended 2/28/2022	Fiscal Year ended 5/31/2021	Fiscal Year ended 5/31/2020
Interest Expense	667	2,496	1,995
Total Operating Expense	6691	25,266	25,172
Interest Expense / Total Operating Expense	9.97%	9.88%	7.93%

*Numbers in Millions, of U.S. dollars

Practical Islamic finance concludes:

There appears to be a persistent reliance on the use of Riba in Oracle Corporation’s operations.

What is Oracle Corporation’s Environmental, Social, and Governance (ESG) impact?

Environment

Oracle plans to achieve net-zero emissions by 2050. They have recycled and reused 99.6% of retired products in 2021 and have targeted 100% renewable energy use by 2025.

Social

Oracle Corporation 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.