VALE
Quality Rating
VALE, a leading global mining company, faces Shariah compliance challenges primarily due to high debt and interest income ratios, despite its core business in resource extraction being permissible. Financial screening reveals failures in debt and impure income thresholds across AAOIFI, MSCI, and S&P standards. Business activities align with Islamic principles, but ESG controversies in environmental and labor areas raise additional concerns. Index exclusion confirms non-compliance, with a purification rate of 10.75% recommended for dividends. Overall, the stock is non-compliant, suitable only for monitoring with purification.
Purification Required
Significant purification required - exercise caution
Index Inclusion
Excluded from all major Shariah indices (S&P, MSCI, FTSE, DJIM)
Key Compliance Considerations
- Debt ratio: 42.17% exceeds 33% threshold across standards
- Interest income ratio: 10.75% exceeds 5% impure income limit
Debt Ratio
42.2%
Liquidity Ratio
9.1%
Interest Income Ratio
10.8%
Purification
10.75%