Saudi Exchange forms Shariah Advisory Committee
COMMERCIAL NEWS
The Saudi Exchange has set up a Shariah Advisory Committee as part of its commitment to maintain the highest standards of governance over investment tools that will be provided by it.
The committee consists of representatives from largest financial institutions, and to ensure independency and transparency in decision making, the Saudi Exchange will oversee the Shariah Advisory committee, without actively taking part in the company screening and selection process.
The committee members will work towards a unified Shariah-compliant rulebook that will be approved by the Committee Members’ respective Shariah Boards.
Shariah-compliant listed companies
Moreover, the committee will undertake the responsibility of overseeing and approving the list of Shariah-compliant listed companies on a periodic basis. In addition, the Saudi Exchange would consult the committee from time to time on some of its products and services.
The committee consists of members comprising leading financial institutions such as Bader Al Omar, Jadwa Investment; Abdulrahman Al Ghusn, Alinma Investment; Abdulaziz Al Demaigi, SNB Capital; Abdulrahman Al Taweel, Al Bilad Capital; Abdullah Al Barrak, Al Rajhi Capital; Lahem Al Nasser, Al Jazira Capital; Yasser Al Abdulsalam, Riyad Capital; and Abdullah Al Hammad, Al Istithmar Capital.
In addition to the creation of the Shariah Advisory Committee, the Saudi Exchange will collaborate with IdealRatings, a leading global Islamic Finance Solutions Provider, to provide Shariah screening services of listed companies within the Saudi capital market.
Expanding offering
The list will be reviewed and approved by the Shariah Advisory Committee. This collaboration will aid the Saudi Exchange to expand its offering to cover new Shariah compliant investment tools and products.-- TradeArabia News Service
