Is Facebook Shariah Compliant? Check Shariah Stock status report of Facebook INC

Shariah Stock Status Report :: FACEBOOK INC :: USA :: NASDAQ :: 2nd March 2021



Company Name

Facebook INC

Shariah Compliance




Business sector screening:

Facebook Inc. is a social media and social networking company based in United States. Among the notable brands, the company owns Instagram as well as WhatsApp. The company derives its revenue from two major segments:
• Advertising: consists of advertising revenue generated from Facebook, Instagram, Messenger and others.
• Other revenue: consists of revenue generated from delivery of consumer hardware devices, net fees received from developers using the Payments infrastructure and revenue from various other sources.

The tricky areas from a Shariah perspective are:
1. Advertising: The kind of advertising services provided i.e. textual, pictorial, marketplace model with controls or generic advertising properties.
2. Content: The content displayed on platforms owned by Facebook such as Instagram, Whatsapp, Facebook.

Regarding the Advertising platform of Facebook:
i. Facebook does not produce any advertising content of its own.
ii. Facebook has a controlled ad publishing policy which prohibits 30+ areas such as Illegal products or services, Illegal products or services, Tobacco and related products, Drugs and drug-related products, Adult products and pornography, Weapons etc. A full list can be seen here:

Regarding the content displayed on Facebook/Instagram etc.:
i. Facebook does not control the kind of content displayed. The content is owned and displayed by the users. Hence, Facebook provides tools for sharing content and hence has no say over what is being displayed.
ii. Ethical restriction: Facebook has a policy of removing content such as nudity or other sexually suggestive content, Hate speech, Fake content etc.

Given the above restrictions, it seems there can be a positive, Shariah permissible usage of Facebook Inc's products

Lets analyze the revenue streams of Facebook to ascertain its business sector compliance.

Segment break up

Operating Revenue in Millions of USD for year ended 31st December 2020

Segment Description

Segment Revenue

Non-permissible Revenue

% non-permissible revenue

Non - permissible segment classification



$ 84,169

The company's advertising polices and the advertising content is subjected to various regulations. Hence, the revenue from this segment is considered permissible. For reference:

Other revenue

$ 1,796


$ 85,965

$ 0


Total Revenue

$ 92,244.00

Non-permissible Operating revenue

$ 0.00

% of non permissible revenue


Since the revenue from non-permissible operating income of the company is less than 5%, FACEBOOK INC. PASSES the BUSINESS SECTOR Screening

Sector Compliance


Non-operating Revenue in Millions of USD for year ended 31st December 2020 - Other Income

Segment Description

Segment Revenue

Non-permissible Revenue

% non-permissible revenue

Non - permissible segment classification


Interest and dividends income

$ 672

$ 672


Interest Income

Foreign exchange losses

-$ 129

Other Income
-$ 34


$ 951

$ 672

Dividend Purification calculation

Revenue Description

Non permissible Revenue (millions of USD)

Non-permissible operating revenue

$ 0

Non-permissible non-operating revenue

$ 672

Total Non-permissible revenue

$ 672

Total Revenue of the Company (Gross)

$ 86,637

Dividend purification ratio


Financial Ratio Screen:

(All figures in millions of USD for Year ended 31st December 2020)




3 years Average Market

$ 572,870

Total Debt

$ 523

Islamic Debts

Adjusted Debts

$ 523

Debt Ratio


Within limits


$ 61,954

Cash Ratio


Within limits

Accounts Receivables

$ 11,335

Accounts Receivables Ratio


Within limits

Since all the Ratios are within the limit, the stock passes the Financial ratios screen

Financial Ratio compliance


All the above information is based on the website of the company, Annual financial report for 2020
Given the above information, we believe FACEBOOK INC is a Shariah Compliant company as per the Shariah screening Criteria.

Do watch what one of the pioneering scholar of Islamic finance says about Islamicly here:

Few Words About Us!!

"I want to thank everyone who has worked and is working on it. I found such an app. Once I wrote something like "Halal stock app" on Google and downloaded Islamicly. Now it is easy for me to determine which stock is Sharia compliant or not with this app! Green is permitted, Red is haram, Purify dividends, Changes in compliance, and all other features what exactly I was looking for. This is a great investment in the financial knowledge of the Ummah. Assalamualaikum and thank you for this App"

Mr. Abdul Rashid

lsamicly is a very good app and it helps me lot in my trading business and it is very helpful in finding or winning shariah compliant stocks which I am managing in quite, few numbers of stocks. It is very transparent and it provides us many information on the app and Inshallah and as I understood that you will offer us the web portal as well and I am pretty looking for it to wait so that I can have many things to be screened on the portal Inshallah. Thank you very much, Thank you for making the app for inshallah, Allah Subhanahu wa Talala bless you all Inshallah​

Mr. Ahmad Sufi Hassan

"I am currently Active Trader for mainly US Stocks Market, so I like Islamicly because its features How they update App daily so easy for me to find stocks for Shariah Screening and they provide me clear information about How for me As not understanding about Shariah but I can understand How they screen the Shariah information in this App so I clearly know How about 5% purification and how to set the portfolio for me and this is helpful for me to find shariah stocks. That`s All. I love Islamicly"

Mr. Hairul Azizi

Share via
Copy link
Powered by Social Snap