Muscat Securities Market (MSM) introduced the sample of its Sharia-compliant index. It issued a circular stating that the new sample will be effective from September 15th.
The Sharia index contains 32 joint stock company listed on MSM whose activities and financial conduct comply with the requirements of the Sharia depending on the standards of the Accounting and Auditing Organization for Islamic financial institutions (AAOIFI).
The index includes 19 companies from the industry sector, 9 companies from the service sector, and 4 companies from the financial sector. This sample is reviewed every three months in order to add or delete companies according to the criteria commitment.
The index list comprises the following companies: Al Anwar Ceramic Tiles, Al Jazeera Services, Al Izz Islamic Bank, Bank Nizwa, Construction Materials Industry, Dhofar Beverages and Food Stuff, Al Batinah Development and Investment Holding, Dhofar Poultry, Gulf International Chemicals, Gulf Mushroom Products, Majan Glass, Muscat Gases, Al Maha Petroleum Products Marketing, National Real Estate Development, Nawras and Oman Chromite.
The list also contains Oman Chlorine, Oman Cement, Oman Education and Training, Oman Flour Mills, Oman Oil Marketing, Oman Refreshments, Oman Telecommunications Company, Oman Textile Holding, Port Services Corporation, Raysut Cement Company, Shell Oman Marketing, A'Saffa Foods, Oman Fisheries, Oman Sweets, Salalah Flour Mills and Voltamp Energy.
The Sharia index helps to attract a new segment of investors as it meets their aspirations and they prefer a reliable reference to select investments that comply with the requirements and provisions of the Islamic Sharia, which in turn contributes to the development and growth of the Islamic finance market sector through providing non-traditional investment options.
It should be noted that the criteria for compatibility with the Islamic law, according to AAOIFI, covers two aspects: business and financial criteria, so that a company is seen as to be compatible with the requirements of the Sharia. MSM has provided more information on its website.
source: ONA news