Halal Stocks in CAC 40 (2026 Musaffa-Screened List for France)

Introduction

France is home to some of the world's most iconic multinational companies, from luxury brands like Hermès and L'Oréal to pharmaceutical and industrial giants like Sanofi and Schneider Electric. For Muslim investors looking at Europe, the French stock market sits among the largest and most international in the region. But by the time you remove banks, insurers, alcohol producers, defence groups, and high-debt utilities, the halal slice of the CAC 40 is narrower than people expect. Around 7 of the 40 constituents are currently screened as halal on the Musaffa platform in accordance with AAOIFI Shariah screening standards as of May 2026.

This article is published by Musaffa LLC ("Musaffa"), a registered investment adviser with the U.S. Securities and Exchange Commission ("SEC"). Registration does not imply a certain level of skill or training.

IMPORTANT DISCLOSURE: The Shariah compliance screening referenced throughout this article is performed on the Musaffa platform by applying AAOIFI-adopted screening standards. Any methodologies or assessments presented are for informational purposes only and should not be relied upon as the sole basis for any investment decision. Past screening status is not indicative of future compliance status or investment performance. French large-cap stocks carry real risks under Shariah rules and general investment principles, which are discussed further below.

What is CAC 40

The CAC 40, which stands for Cotation Assistée en Continu, is the benchmark French stock market index. It tracks the 40 largest and most actively traded companies by free-float market capitalization on Euronext Paris. The index was launched in December 1987 with a base value of 1,000.

The CAC 40 is reviewed every quarter by Euronext's scientific council. The five largest constituents as of early 2026 are TotalEnergies, Schneider Electric, LVMH, Air Liquide, and Sanofi. Together they make up close to 33 percent of the entire index. Of these five, three (Schneider Electric, Air Liquide, and Sanofi) are currently screened as halal on the Musaffa platform.

A unique feature of the CAC 40 is its international footprint. CAC 40 companies generate over two-thirds of their revenue outside France, making the index more sensitive to global trends than to the French domestic economy.

How this list was built

We used the Musaffa Stock Screener to check the Shariah compliance screening status of each CAC 40 constituent under AAOIFI Shariah screening standards as applied on the Musaffa platform.

Each stock listed here has been screened as halal on the Musaffa platform in accordance with AAOIFI Shariah screening standards as of May 2026. Status can change every quarter as companies' financial ratios and business activities evolve, so always recheck before you invest. THIS SCREENING STATUS MAY NO LONGER BE CURRENT. Readers accessing this article after May 2026 must independently verify current Shariah compliance status directly through the Musaffa platform or another qualified source before making any investment decision. Musaffa does not undertake any obligation to update this article.

What is a halal French stock?

A halal French stock is one that passes two screens. The first is the business activity screen. The company must not earn from prohibited fields like alcohol, gambling, conventional banking, insurance, tobacco, weapons, or adult content. The second is the financial ratios screen. Debt and interest income must stay under the AAOIFI limits.

For CAC 40 names, both layers eliminate meaningful weight in the index. The activity screen catches financial firms, alcohol groups, defence companies, and a few luxury names with alcohol exposure. The financial ratio screen catches several large industrial firms and most utilities that carry high interest-bearing debt.

The 7 halal CAC 40 stocks in 2026

1. Hermès International SCA (RMS.PA)

• Sector: Consumer Goods (Luxury Goods)
• Exchange: Euronext Paris

Hermès is a global symbol of French luxury and a leading name in the consumer goods sector in France, best known for its iconic Birkin and Kelly handbags, scarves, and ready-to-wear collections. The firm has consistently posted some of the highest profit margins in global retail thanks to its pricing power and craftsmanship-focused production model. Luxury goods are generally a permissible business activity under AAOIFI standards. Hermès passes AAOIFI screening standards as applied on the Musaffa platform as of May 2026 with negligible interest income and minimal borrowings. This screening result reflects a point-in-time assessment and does not constitute a recommendation to invest.

2. L'Oréal SA (OR.PA)

• Sector: Consumer Goods (Beauty and Personal Care)
• Exchange: Euronext Paris

L'Oréal is the world's largest cosmetics and beauty company. Its portfolio includes consumer brands like L'Oréal Paris, Garnier, Maybelline, and NYX, plus luxury labels like Lancôme, Yves Saint Laurent Beauté, and Kiehl's, along with professional and dermo-cosmetics divisions. Beauty and personal care are permissible business activities under AAOIFI standards. L'Oréal passes AAOIFI screening standards as applied on the Musaffa platform as of May 2026. This screening result reflects a point-in-time assessment and does not constitute a recommendation to invest.

3. Schneider Electric SE (SU.PA)

• Sector: Industrials (Energy Management and Industrial Automation)
• Exchange: Euronext Paris

Schneider Electric is a global leader in energy management and industrial automation. As a major player in the industrial sector in France, the firm benefits from structural tailwinds around the electrification of buildings, data centres, and infrastructure, and the global transition to digital and clean energy. Its product portfolio covers electrical distribution equipment, building management systems, industrial control software, and grid solutions. Energy management and industrial automation are permissible business activities under AAOIFI standards. Schneider Electric passes AAOIFI screening standards as applied on the Musaffa platform as of March 2026. This screening result reflects a point-in-time assessment and does not constitute a recommendation to invest.

4. EssilorLuxottica SA (EL.PA)

• Sector: Healthcare (Medical Instruments and Optical)
• Exchange: Euronext Paris

EssilorLuxottica is the world's largest optical and eyewear company. As a leading company connected to the healthcare sector in France, it manufactures prescription lenses and owns iconic eyewear brands like Ray-Ban, Oakley, Persol, and Costa, as well as the LensCrafters and Sunglass Hut retail chains. The firm was formed in 2018 through the merger of France's Essilor and Italy's Luxottica. Optical products and medical devices are permissible business activities under AAOIFI standards. EssilorLuxottica passes AAOIFI screening standards as applied on the Musaffa platform as of May 2026. This screening result reflects a point-in-time assessment and does not constitute a recommendation to invest.

5. Sanofi SA (SAN.PA)

• Sector: Healthcare (Pharmaceuticals)
• Exchange: Euronext Paris

Sanofi is one of Europe's largest pharmaceutical groups, with a strong global footprint across specialty care, vaccines, and general medicines. Key franchises include the immunology drug Dupixent and a broad vaccine portfolio. Pharmaceuticals are a permissible business activity under AAOIFI standards. Sanofi passes AAOIFI screening standards as applied on the Musaffa platform as of May 2026. This screening result reflects a point-in-time assessment and does not constitute a recommendation to invest.

6. L'Air Liquide SA (AI.PA)

• Sector: Basic Materials (Industrial Gases)
• Exchange: Euronext Paris

Air Liquide is the world's largest industrial gas company. It supplies oxygen, nitrogen, hydrogen, and other industrial and medical gases to customers across healthcare, electronics, chemicals, food, and energy. The firm is also a major player in clean hydrogen and decarbonisation infrastructure. Industrial gases and medical gases are permissible business activities under AAOIFI standards. Air Liquide passes AAOIFI screening standards as applied on the Musaffa platform as of May 2026. This screening result reflects a point-in-time assessment and does not constitute a recommendation to invest.

7. Dassault Systèmes SE (DSY.PA)

• Sector: Technology (Enterprise Software)
• Exchange: Euronext Paris

Dassault Systèmes is one of Europe's largest enterprise software companies. As a key player in the technology sector in France, its 3DEXPERIENCE platform and product lines like CATIA, SOLIDWORKS, SIMULIA, and DELMIA are used by aerospace, automotive, life sciences, and industrial firms for design, simulation, and lifecycle management. Enterprise software is a permissible business activity under AAOIFI standards. Dassault Systèmes passes AAOIFI screening standards as applied on the Musaffa platform as of May 2026. This screening result reflects a point-in-time assessment and does not constitute a recommendation to invest.

Notable CAC 40 names that do not pass

This is where the CAC 40 surprises many halal investors. Several of the biggest and most recognised French names do not pass AAOIFI screening on the Musaffa platform. The screening results below reflect a point-in-time assessment and do not constitute an investment recommendation.

BNP Paribas, Société Générale, and Crédit Agricole are conventional banks. They fail the activity screen because conventional banking earns from riba. None of the major French listed banks are screened as halal under AAOIFI standards on the Musaffa platform.

LVMH is a luxury powerhouse with brands across fashion, leather goods, beauty, and watches. However, its Wines and Spirits division (Moët & Chandon, and Hennessy) generates meaningful alcohol revenue, which fails the AAOIFI business activity screen.

Pernod Ricard is one of the world's largest spirits companies. Alcohol production and distribution fails the AAOIFI activity screen.

Kering owns luxury brands like Gucci, Saint Laurent, and Bottega Veneta. Kering does not currently pass on the Musaffa platform, primarily due to financial ratio considerations.

TotalEnergies is France's largest energy company and the heaviest weight in the CAC 40. Like several global oil majors, TotalEnergies has historically carried interest-bearing debt levels that push its financial ratios beyond AAOIFI thresholds. The energy business itself is permissible, but the financial ratio screen is the binding constraint.

Airbus, Safran, and Thales all have meaningful exposure to weapons and military equipment, which fails the AAOIFI business activity screen for many scholars.

Stellantis and Renault are auto manufacturers that run substantial financial services subsidiaries providing vehicle credit financing and leasing. This breaks the AAOIFI activity screen, similar to how German auto groups like BMW and Volkswagen fail the screen.

Engie is a French utility group with high interest-bearing debt typical of European utilities. Its financial ratios fail the AAOIFI 30 percent debt threshold.

Vinci and Bouygues are French infrastructure and construction conglomerates with significant interest-bearing debt and toll-road or concession financing structures.

The pattern is consistent. Either the activity screen fails (banking, insurance, alcohol, weapons, captive auto financing), or the financial ratio screen fails (high debt relative to market cap). For a Muslim investor looking at French large caps, this is why halal names cluster in luxury (excluding alcohol), pharma, beauty, industrial automation, optical, software, and specialty gases.

How AAOIFI screening works for French stocks

AAOIFI screening combines two layers. The activity layer excludes companies whose core business is conventional banking, insurance, alcohol, gambling, pork, tobacco, weapons, or adult entertainment. The financial ratio layer then checks three thresholds:

1. Income from non-permissible sources stays under 5 percent of total income
2. Interest-bearing debt stays under 30 percent of market capitalisation (using a 36-month average)
3. Interest-bearing assets stay under 30 percent of market capitalisation

These checks are recalculated every quarter. French firms typically file twice a year for full results, plus interim trading updates. Status changes can happen at any of these reporting points.

Sector view of halal CAC 40 stocks

The halal slice of the CAC 40 clusters in five sectors. Knowing the cluster helps with portfolio construction.

Healthcare and life sciences is anchored by Sanofi and EssilorLuxottica. Pharma, optical, and medical devices are core halal-permissible. France is also a leader in clean industrial gases through Air Liquide, which serves medical and clean-energy markets.

Consumer goods are represented by L'Oréal (beauty), and Hermès (luxury accessories, leather goods, and apparel). These names give exposure to global premium brands.

Industrials and automation is anchored by Schneider Electric, the global leader in energy management. The firm sits at the intersection of clean energy and AI infrastructure spend, both structural tailwinds.

Technology is represented by Dassault Systèmes, one of Europe's largest enterprise software firms. It is the smallest halal name in the index by market cap but one of the most globally competitive software franchises in France.

There are no halal banks, no halal insurers, no halal alcohol producers, no halal defence firms, no halal pure auto manufacturers, and no halal utilities in the CAC 40. That is by design of the AAOIFI screen.

France-specific points to keep in mind

• Currency risk. CAC 40 stocks trade in euros.
• Dual listings and ADRs. Several CAC 40 names trade as American Depositary Receipts on US exchanges. The screening status is the same regardless of where the shares are traded.
• Purification. Many halal CAC 40 names are dividend-paying. If a company has any small share of non-permissible income within the AAOIFI 5 percent limit, scholars usually recommend purifying a proportionate share of dividends by donating it to charity.

Risks unique to French large-cap halal investing

French large-cap halal investing comes with risks every Muslim investor should understand.

• Quarterly status changes. French financial ratios can move on every interim or full-year report. Always recheck the status on the Musaffa Stock Screener that applies AAOIFI standards.
• Index reshuffles. The CAC 40 is reviewed every quarter. A name on this list may drop to the CAC Next 20 or SBF 120 at any time. That does not change halal status.
• Sector concentration. A halal CAC 40 portfolio leans heavily on luxury and consumer goods, healthcare, and industrial automation. Diversification looks different from a full-index portfolio.
• Luxury cycle exposure. Hermès, L'Oréal, and EssilorLuxottica are exposed to global luxury demand, particularly from China.
• Defence sector exclusion. France has world-class defence and aerospace firms (Airbus, Safran, Thales, Dassault Aviation), but all currently fail the AAOIFI activity screen. Halal portfolios cannot get direct French defence exposure.
• No promise of returns. A halal large-cap stock can still fall in price. Faith and finance are separate questions.

For investors looking for broader French or European exposure, halal-compliant European ETFs may be a simpler starting point. You can also explore options on the Musaffa ETF screener.

A simple verification method for French stocks

Before you buy any name on this list, run these five checks:

• Open the stock page on the Musaffa Stock Screener and confirm halal status as of today.
• Read the firm's most recent half-year or full-year results on the company's investor relations website.
• Confirm the stock is still part of the CAC 40. Some names move down to the SBF 120 between reviews.
• Cross-check sector and product mix for any new haram revenue lines, alcohol acquisitions, or captive financial services arms.
• Set a reminder to recheck halal status every three to six months.

If you do this every quarter, you will catch most changes in Shariah compliance early.

Frequently asked questions

How many CAC 40 stocks are halal in 2026?

Around 7 of the 40 constituents are currently screened as halal on the Musaffa platform as of May 2026. The exact number can change every quarter as financial ratios shift and as the CAC 40 itself is rebalanced.

Is LVMH halal?

No. LVMH owns a substantial Wines and Spirits division including Moët & Chandon, Dom Pérignon, Hennessy, and Belvedere. Alcohol revenue fails the AAOIFI business activity screen, so LVMH does not pass on the Musaffa platform.

Is TotalEnergies halal in 2026?

The energy business itself is a permissible activity under AAOIFI standards, but TotalEnergies has historically carried interest-bearing debt levels that exceed AAOIFI thresholds. This places it outside the halal universe on the Musaffa platform, similar to how Shell and BP fail the financial ratio screen.

Is Hermès halal?

Hermès passes AAOIFI screening standards as applied on the Musaffa platform as of May 2026. The luxury accessories, leather goods, and apparel business is permissible, and Hermès has historically maintained very low debt and interest income.

Are French banks like BNP Paribas halal?

No. BNP Paribas, Société Générale, and Crédit Agricole are conventional banks and do not pass the AAOIFI business activity screen. AXA also fails as a conventional insurer.

Is Airbus or Safran halal?

Both have meaningful exposure to military aerospace and defence revenue, which fails the AAOIFI business activity screen for many scholars. Neither is currently screened as halal in accordance with AAOIFI standards on the Musaffa platform.

Is Pernod Ricard halal?

No. Pernod Ricard is one of the world's largest spirits and alcohol companies. Alcohol production and distribution fails the AAOIFI activity screen.

Is the CAC 40 itself halal?

No. The full CAC 40 contains banks, insurers, alcohol producers, defence firms, auto groups with financial services arms, and high-debt utilities. Passive CAC 40 trackers are not screened as halal under AAOIFI standards on the Musaffa platform. Muslim investors who want French or European exposure may consider Shariah-compliant European ETFs, or build a custom portfolio of halal-screened names. You can review options on the Musaffa ETF screener.

How often should I recheck my French halal stocks?

At least every three months. French firms file twice a year for full results plus interim updates, and financial ratios can move on each of these dates.

Final takeaways

Screen your stocks with Musaffa

Run any Euronext Paris ticker through the Musaffa Stock Screener to confirm halal status using AAOIFI standards. Compare halal stocks across sectors and countries. Find safer ways to screen halal ETFs on Musaffa. Your faith. Your money. One platform.

Disclaimer: The content is for educational purposes only and is not a substitute for personalized advice from Musaffa. It does not constitute fatwa, legal, or tax advice, an offer, or a solicitation to buy or sell any security or investment strategy. The information is believed reliable as of publication date but may not reflect recent changes, and Musaffa does not guarantee its accuracy, completeness, or timeliness. Musaffa's Shariah compliance screening is based on AAOIFI Shariah standards. Any methodologies or assessments presented are for informational purposes only and should not be relied upon as the sole basis for any investment decision. It is important to conduct your own research or consult with a financial advisor or tax professional before making any investment decisions. All investments involve risk, and the value of securities and other investments may fluctuate due to market conditions, economic factors, or other external influences. Past performance is not indicative of future results. The views expressed are those of certain Musaffa personnel as of the publication date, are for informational purposes only, and may change without notice. They may differ from views of other areas of the firm, and any forward-looking statements are not guarantees and may not come to pass. Logos, brand names and external links are used for identification only and do not imply endorsement. For additional information and statements, see our disclaimers: https://musaffa.com/disclaimer