Halal Stocks in DAX 40 (2026 Musaffa-Screened List for Germany)

Introduction

Germany is the largest economy in Europe and one of the most important industrial markets in the world. For Muslim investors looking at Europe, Germany sits high on the list. The DAX is the country's flagship index. But by the time you remove banks, insurers, auto financing arms, and defence firms, the halal slice is narrower than people expect. Around 12 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. German large-cap stocks carry real risks under Shariah rules and general investment principles, which are discussed further below.

What is DAX 40

The DAX, short for Deutscher Aktienindex, tracks the 40 largest German companies on the Frankfurt Stock Exchange by free-float market capitalization. It started on 1 July 1988 with a base value of 1,000. The index expanded from 30 to 40 constituents in September 2021 after the Wirecard accounting scandal pushed Deutsche Börse to broaden representation.

The DAX crossed 25,000 points in early 2026 and represents a combined market cap above €1.9 trillion. The five largest constituents are SAP, Siemens, Allianz, Deutsche Telekom, and Airbus. Of those five, only SAP is currently screened as halal on the Musaffa platform as of May 2026.

The index is reviewed every quarter by STOXX. Promotions and relegations between the DAX, MDAX, and SDAX happen on a rolling basis. So the halal slice of the DAX 40 also shifts each quarter.

How this list was built

We used the Musaffa Stock Screener to check the Shariah compliance screening status of each DAX 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.

The 12 halal DAX 40 stocks in 2026

1. SAP SE (XETRA: SAP)

• Sector: Technology (Enterprise Software)
• Exchange: XETRA (Frankfurt Stock Exchange)

SAP is the largest German company by market capitalization in the technology in Germany sector and the largest enterprise software firm in Europe. Its core products are ERP, CRM, supply chain, and cloud-based business applications used by most of the world's largest corporations. Enterprise software is a permissible business activity under AAOIFI standards. SAP 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.

2. Siemens Energy AG (XETRA: ENR)

• Sector: Energy
• Exchange: XETRA (Frankfurt Stock Exchange)

Siemens Energy provides energy technology including gas and steam turbines, grid technologies, transformation of industry, and wind turbines through Siemens Gamesa. The firm was spun out of Siemens AG in 2020. Energy technology is a permissible business activity under AAOIFI standards. Siemens Energy 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. Merck KGaA (XETRA: MRK)

• Sector: Healthcare (Life Sciences, Healthcare, Electronics)
• Exchange: XETRA (Frankfurt Stock Exchange)

Merck KGaA is a global science and technology company with three segments: Life Science, Healthcare, and Electronics. It is one of the leading healthcare sectors in Germany. It is the world's oldest pharmaceutical and chemical firm, founded in 1668, and is distinct from Merck & Co. in the United States. Pharmaceuticals, life sciences, and electronics materials are permissible business activities under AAOIFI standards. Merck KGaA 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.

4. Siemens Healthineers AG (XETRA: SHL)

• Sector: Healthcare (Medical Imaging and Diagnostics)
• Exchange: XETRA (Frankfurt Stock Exchange)

Siemens Healthineers is a global leader in medical imaging, laboratory diagnostics, and cancer care technology through its Varian subsidiary. The firm was spun out of Siemens AG in 2018. Healthcare equipment and services are permissible business activities under AAOIFI standards. Siemens Healthineers 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. Infineon Technologies AG (XETRA: IFX)

• Sector: Semiconductors
• Exchange: XETRA (Frankfurt Stock Exchange)

Infineon Technologies is one of the world's largest automotive and power semiconductor sectors in Germany. It supplies chips for electric vehicles, industrial automation, renewable energy, and security applications. Semiconductors are a permissible business activity under AAOIFI standards. Infineon Technologies 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. Henkel AG & Co. KGaA (XETRA: HEN3)

• Sector: Consumer Goods (Adhesives, Beauty Care, Laundry)
• Exchange: XETRA (Frankfurt Stock Exchange)

Henkel operates in three segments: Consumer and Industrial Adhesives, Beauty Care, and Laundry and Home Care. Its well-known brands include Persil, Schwarzkopf, Loctite, and Pritt. Consumer goods sector in Germany are permissible business activities under AAOIFI standards. Henkel 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. Beiersdorf AG (XETRA: BEI)

• Sector: Consumer Goods (Skincare and Personal Care)
• Exchange: XETRA (Frankfurt Stock Exchange)

Beiersdorf is the company behind Nivea, Eucerin, La Prairie, and Hansaplast. It operates in consumer skincare, dermo-cosmetics, and adhesive plasters. Consumer skincare is a permissible business activity under AAOIFI standards. Beiersdorf 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.

8. Adidas AG (XETRA: ADS)

• Sector: Consumer Discretionary (Sportswear and Footwear)
• Exchange: XETRA (Frankfurt Stock Exchange)

Adidas is one of the world's largest sportswear and athletic footwear brands, second globally only to Nike. It also owns the Reebok brand spinout and operates across more than 50 countries. Sportswear and athletic footwear are permissible business activities under AAOIFI standards. Adidas 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.

9. Symrise AG (XETRA: SY1)

• Sector: Specialty Chemicals (Flavors and Fragrances)
• Exchange: XETRA (Frankfurt Stock Exchange)

Symrise produces flavors, fragrances, cosmetic ingredients, and pet food ingredients. It serves food and beverage companies, personal care firms, and household goods brands worldwide. Specialty chemicals and food ingredients are permissible business activities under AAOIFI standards. Symrise 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.

10. Brenntag SE (XETRA: BNR)

• Sector: Industrials (Chemical Distribution)
• Exchange: XETRA (Frankfurt Stock Exchange)

Brenntag is Germany's largest chemical distribution company. It is a leading industry sector in the German stock market. It connects chemical producers with downstream industries across pharmaceuticals, food, personal care, and water treatment. Chemical distribution is a permissible business activity under AAOIFI standards. Brenntag 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.

11. GEA Group AG (XETRA: G1A)

• Sector: Industrials (Food Processing and Mechanical Engineering)
• Exchange: XETRA (Frankfurt Stock Exchange)
• Market Cap: ~€8 billion (May 2026)

GEA Group is one of the world's largest suppliers of food processing technology and equipment. It also serves the dairy, pharmaceutical, and chemical industries with separation, heating, cooling, and packaging machinery. Mechanical engineering and food processing equipment are permissible business activities under AAOIFI standards. GEA Group 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.

12. Zalando SE (XETRA: ZAL)

• Sector: Consumer Goods (Online Fashion Retail)
• Exchange: XETRA (Frankfurt Stock Exchange)
• Market Cap: ~€7 billion (May 2026)

Zalando is Europe's largest online fashion retailer. It operates in more than 25 countries and connects shoppers with thousands of fashion and lifestyle brands. Online fashion retail is generally a permissible business activity under AAOIFI standards. Zalando 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 DAX 40 names that do not pass

This is where the DAX 40 surprises many halal investors. Several of the biggest and most recognised German 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.

Allianz, Hannover Re, and Deutsche Börse fall under financial services and insurance, which fails the business activity screening in accordance with AAOIFI standards.

Deutsche Bank and Commerzbank are conventional banks. They fail the activity screen because conventional banking earns from riba. None of the major German listed banks pass AAOIFI screening on Musaffa.

BMW, Mercedes-Benz Group, Volkswagen Group, and Daimler Truck are all classified as not halal on the Musaffa platform in accordance with AAOIFI standards. The reason is that each of these auto groups runs a substantial financial services subsidiary providing vehicle credit financing and leasing. This breaks the AAOIFI business activity screen even though the manufacturing business itself is permissible.

Bayer is classified as not halal under AAOIFI standards on the Musaffa platform as of September 2025 due to financial ratio issues, particularly debt levels following the Monsanto acquisition.

BASF, the world's largest chemical company, also faces financial ratio constraints that have placed it outside AAOIFI thresholds in recent reviews.

Rheinmetall, Airbus, and MTU Aero Engines all have meaningful exposure to weapons and military equipment, which fails the AAOIFI business activity screen for many scholars.

Deutsche Telekom, and RWE carry significant interest-bearing debt loads typical of European telecoms and utilities. Their financial ratios do not meet the AAOIFI 30 percent debt threshold.

Vonovia is a residential real estate group. Real estate firms with high mortgage-related debt typically fail the AAOIFI financial ratio screen.

The pattern is consistent. Either the activity screen fails (banking, insurance, weapons, captive financial services), or the financial ratio screen fails (high debt relative to market cap). For a Muslim investor looking at German large caps, this is why halal names cluster in software, semiconductors, pharma, life sciences, consumer goods, and specialty chemicals.

How AAOIFI screening works for German 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. German 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 DAX 40 stocks

The halal slice of the DAX 40 clusters in five sectors as of May 2026 in accordance with AAOIFI standards. Knowing the cluster helps with portfolio construction. The screening results below reflect a point-in-time assessment and do not constitute an investment recommendation.

Technology and software is anchored by SAP and Infineon. SAP brings enterprise software exposure, and Infineon brings semiconductors. Together they account for the largest share of the halal DAX 40 universe by market cap.

Healthcare and life sciences includes Merck KGaA and Siemens Healthineers. Pharma, diagnostics, and medical imaging are among the cleanest sectors for Muslim investors.

Consumer goods is represented by Henkel, Beiersdorf, and Adidas. These names give exposure to global brands in adhesives, skincare, and sportswear.

Specialty chemicals and industries include Symrise, Brenntag, and GEA Group. These are mid-cap names that supply core inputs to food, beauty, and pharma industries.

Energy technology and e-commerce are represented by Siemens Energy and Zalando respectively.

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

Germany-specific points to keep in mind

• Currency risk. DAX 40 stocks trade in euros. For investors outside the eurozone, currency moves affect both share price and dividend value.
• Withholding tax on dividends. Germany withholds tax on dividends paid to non-resident shareholders. Treaty rates and reclaim processes vary by country.
• Dual listings. Several DAX 40 names trade as ADRs on US exchanges and as ordinary shares in Frankfurt. The screening status is the same regardless of where the shares are traded, but liquidity and trading costs differ.
• Purification. Many halal DAX 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 German large-cap halal investing

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

• Quarterly status changes. German financial ratios can move on every interim or full-year report. Always recheck on the Musaffa Stock Screener before buying.
• Index reshuffles. The DAX 40 is reviewed every quarter. A name on this list may drop to the MDAX at any time. That does not change halal status, but it can affect liquidity and inclusion in passive funds.
• Sector concentration. A halal DAX 40 portfolio leans heavily on technology, healthcare, and consumer goods. Diversification looks different from a full-index portfolio.
• Export sensitivity. Many DAX 40 names are export-heavy, especially to China and the US. Trade tensions and tariff cycles affect them more than domestic-focused indices.
• Auto sector exclusion. Germany is famous for its auto industry, but the AAOIFI screen excludes all listed German auto groups today. Halal exposure to German auto demand may need to come through suppliers like Infineon rather than direct OEM holdings.
• 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 German 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 German 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 DAX 40. Some names move down to the MDAX between reviews.
• Cross-check sector and product mix for any new haram revenue lines 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

What is the DAX 100 vs the DAX 40?

The DAX 100 was a historical German blue-chip index that existed until 2003 and was discontinued. It was replaced by the HDAX, which combines the DAX 40, MDAX, and TecDAX. The DAX 40 is the modern flagship German index of the 40 largest companies on the Frankfurt Stock Exchange.

How many DAX 40 stocks are halal in 2026?

Around 12 of the 40 constituents are currently screened as halal on the Musaffa platform in accordance with AAOIFI standards as of May 2026. The exact number can change every quarter as financial ratios shift and as the DAX 40 itself is rebalanced.

Is BMW or Mercedes-Benz halal?

No. BMW, Mercedes-Benz Group, Volkswagen, and Daimler Truck are all classified as not halal under AAOIFI standards on the Musaffa platform. The reason is that each of these auto groups runs a financial services subsidiary providing vehicle credit financing and leasing, which fails the AAOIFI business activity screen.

Is SAP halal in 2026?

SAP passes AAOIFI screening standards as applied on the Musaffa platform as of February 2026. It is the largest halal-screened name in the DAX 40 by market capitalisation.

Is Deutsche Bank halal?

No. Deutsche Bank is a conventional bank and does not pass the AAOIFI business activity screen, like all major German listed banks. Commerzbank also fails the screen for the same reason.

Is Bayer halal?

No. Bayer is classified as not halal on the Musaffa platform as of September 2025. The pharmaceutical and crop science business itself is permissible, but Bayer's financial ratios exceed AAOIFI thresholds, largely due to debt levels following the Monsanto acquisition.

Are German defence stocks halal?

No. Rheinmetall is a defence and weapons manufacturer that fails the AAOIFI business activity screen. Airbus and MTU Aero Engines have meaningful exposure to military equipment that raises activity-screen concerns for many scholars.

Is the DAX 40 itself halal?

No. The full DAX 40 contains banks, insurers, auto groups with financial services arms, and defence firms. Passive DAX 40 trackers are not screened as halal on the Musaffa platform. Muslim investors who want German 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 German halal stocks?

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

Final takeaways

The DAX 40 is a hard index for halal investors at first glance, but the names that do pass are world-class. Around 12 of the 40 constituents are screened as halal on the Musaffa platform in May 2026, concentrated in software, semiconductors, pharma, life sciences, consumer goods, and specialty chemicals.

The largest halal name is SAP, Europe's leading enterprise software company. Behind it sit a strong cluster of pharma and medical technology firms (Merck KGaA, Siemens Healthineers), specialty industrials (Symrise, Brenntag, GEA Group), and consumer brands (Henkel, Beiersdorf, Adidas, Zalando).

Banks, insurers, auto groups, defence firms, and high-debt utilities make up the rest of the index. So a halal DAX 40 portfolio looks quite different from the full benchmark. That is normal and not a flaw of the screening method.

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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