Amazon (AMZN) is rated questionable by Zoya under AAOIFI standards. Its interest income ratio of 0.61% is among the lowest of any major tech or retail company, largely because Amazon's total revenue base — $716.9 billion for the fiscal year ending December 31, 2025 — is enormous. The business itself spans e-commerce, cloud computing, advertising, and streaming, none of which are inherently haram. Here's the full picture.
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What Amazon actually does
Amazon operates across multiple segments: its core retail marketplace (both direct sales and third-party seller services), Amazon Web Services (AWS, its cloud computing division), advertising services, subscription services including Amazon Prime, and digital content including Prime Video. AWS is the highest-margin business and increasingly drives most of Amazon's operating income. None of these primary business activities — retail, cloud infrastructure, advertising, subscription services — involve haram products or services.
Amazon does sell alcohol and other items through its marketplace. The question for shariah screening is whether a company's primary business is haram, not whether any product available on its platform is. Amazon's core business is logistics, technology infrastructure, and marketplace facilitation — not the sale of any specific product category.
Why it's rated questionable
The questionable rating comes from interest income. Amazon reported interest income of $4.381 billion for fiscal year 2025. Against total revenue of $716.9 billion, that's 0.61% of the combined total — well under the AAOIFI threshold of 5%. Large corporations routinely earn interest on the cash, short-term investments, and fixed income securities they hold on their balance sheets. Amazon holds significant cash reserves, which generates this interest income.
The 0.61% in context
Amazon's 0.61% interest income ratio is actually lower than Microsoft's (0.94%), Google's (1.26%), and Meta's (1.32%). The reason is simple: Amazon's revenue base is by far the largest of the major tech companies. $4.4 billion in interest income against $717 billion in revenue is a smaller percentage than the same dollar amount would represent at a smaller company. Under AAOIFI standards, this puts Amazon comfortably within the acceptable range.
What this means for Muslim investors
A questionable rating under AAOIFI standards generally means the stock is considered permissible to invest in, with a purification requirement on the impermissible revenue portion. Purification means donating the equivalent percentage of your returns to charity — in Amazon's case, 0.61% of gains attributable to the company's interest income. Zoya's app calculates this automatically.
Check Amazon's current compliance status on Zoya before investing, since the rating updates at minimum quarterly as new financial data becomes available. Enable alerts in the app to get notified of any status changes.
What screening methodology Zoya uses
Zoya screens stocks using AAOIFI standards — the guidelines set by the Accounting and Auditing Organization for Islamic Financial Institutions, whose Shariah board includes scholars like Sheikh Muhammad Taqi Usmani and Sheikh Nizam Yaquby. These standards evaluate both business activity (what the company does) and financial ratios (interest income, debt levels). For a full explanation of how stock screening works, read What Makes a Stock Halal? For a side-by-side comparison of Zoya and its main competitor, see Zoya vs. Musaffa.
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Amazon is rated questionable by Zoya. The primary business has no inherently haram activities. Interest income of 0.61% is well under the AAOIFI 5% threshold and is among the lowest ratios of any major U.S. tech company. Most scholars consider stocks in this range permissible with purification. Verify current status in Zoya before investing. For a comparison of Zoya against its main competitor, see the Zoya vs Musaffa guide.
Frequently asked questions
Is AMZN stock halal to buy in 2026?
Zoya rates Amazon as questionable under AAOIFI standards, which most scholars consider permissible with purification. Interest income is 0.61% of combined revenue — well under the 5% AAOIFI threshold.
Does Amazon selling alcohol make it haram?
Not under AAOIFI screening standards. The screening focuses on whether a company's primary business activities are haram, not whether any specific product is available on its marketplace. Amazon's primary business is logistics, cloud infrastructure, and marketplace facilitation.
Why does Amazon earn interest income if it's a retail company?
Amazon holds significant cash and short-term investments on its balance sheet — common for large corporations. This cash earns interest. The $4.4 billion in interest income comes from these holdings, not from lending activities.
How do I calculate purification for Amazon stock?
The purification percentage corresponds to the impermissible revenue ratio — in Amazon's case, approximately 0.61% of returns attributable to interest income. The Zoya app calculates this automatically if you link your brokerage account.
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Is AWS (Amazon Web Services) halal?
AWS itself — cloud computing infrastructure and services — has no inherently haram business activities. It provides storage, computing power, and services to businesses and developers. The compliance question for AMZN stock relates to the combined company's financial ratios, not AWS specifically.
