GLOB

Globant S.A.

HALAL

Score: 86/100

stock

Is GLOB Halal?

Digital-engineering and IT-services firm that builds software, AI, and digital products for enterprise clients — a permissible technology-services business with modest leverage.

What You Should Know

Globant S.A. is a publicly-traded technology-services company that provides digital-engineering, software-development, AI, cloud, and design services, building custom software products and digital transformations for enterprise clients across industries. Providing software-engineering and IT consulting services is a general-purpose technology activity that is unambiguously permissible at the activity level under standard Sharia methodology; Globant earns fees for engineering work rather than from any impermissible activity. The financial screen is the primary consideration: Globant carries modest debt, including a credit facility used for working capital and acquisitions, so the debt-to-market-cap ratio should be verified against the 33% Sharia threshold at the time of investment, though the company is profitable and cash-generative. Subject to that verification, most major Sharia advisory boards classify Globant as permissible with purification of small interest-income components.

⚠️ Concerns

•Debt-to-market-cap ratio should be verified against the 33% Sharia threshold at the time of investment — Globant carries some interest-bearing debt used for working capital and acquisitions; this is the primary Sharia-screening consideration
•Any interest-bearing borrowings are conventional-debt instruments — investors who object to such issuance should weigh this even where the debt ratio passes the 33% screen
•As an acquisitive IT-services firm, Globant's leverage, goodwill, and receivables can shift with deal activity, so the financial screen should be re-verified following material transactions — IT-services firms typically carry higher receivables balances
•Interest income from cash balances and the receivables-to-assets ratio should be confirmed against the preferred board's thresholds at the time of investment