AVAV

AeroVironment, Inc.

HARAM

Score: 18/100

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Is AVAV Halal?

Combat unmanned aircraft systems and loitering munitions — primary business is weapons systems for military customers.

What You Should Know

AeroVironment is a US defense technology company specializing in small unmanned aircraft systems (Switchblade loitering munitions, Puma, Raven, JUMP 20), tactical missile systems, and unmanned ground vehicles. The product line is dominated by combat-deployed weapons platforms — Switchblade in particular is an offensive loitering munition used in active conflicts. The primary customer is the US Department of Defense and allied militaries. Most major Sharia advisory boards classify weapons-systems manufacturers as failing the qualitative business activity screen regardless of financial ratios, and AeroVironment is excluded from major Islamic indices on those grounds. The 2024 acquisition of BlueHalo further deepened AeroVironment's defense and counter-UAS exposure. The qualitative business activity screen is the binding constraint; financial ratios are secondary.

⚠️ Concerns

•Combat loitering munitions and tactical missile systems are the primary product line
•Primary customer is the US Department of Defense and allied militaries
•Fails business activity screen at most major Sharia advisory boards
•Excluded from major Islamic indices and Sharia-compliant funds
•Weapons-systems manufacturer classification is broadly accepted by AAOIFI-style screens