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Shariah Guidelines

Musharaka Capital is committed to providing investment solutions that comply with the principles of Islamic Sharia by applying Sharia-compliant regulations in investment and stock trading activities. The company's Sharia Board has adopted the following criteria to determine the permissibility of dealing in shares of joint-stock companies

Joint stock companies with permissible objectives and activities: It is permissible to invest and deal in the stocks of this type of companies in accordance with the stated Terms and Conditions of sale (trading).
Joint stock companies with illicit objectives and activities, including trading in wine, tobacco, pork, gambling, interest bearing banking activities, companies with insolent activities or films, funds dealing in interest-bearing bonds, and companies specialized in debt handling and dealing. It is to be pointed out here that it is categorically impermissible to invest and trade in the stocks of this type of companies.
Companies whose objectives and activities are permissible but may have illicit matters in their dealings, such as dealing in usurious interest-bearing loans or deposits. The Shariah Board has approved the permissibility of investment and trading in the stocks of these companies (type three)

The following safeguards and controls shall be in place upon investment and trading in this type of joint stock companies:

Firstly

  • Permissibility of dealing in the stocks of this type of companies shall be restricted to exigency. In this regard, if certain joint stock companies are found to comply with avoidance of dealing in usury and are found to satisfy the need for such dealing, they should be preferred to similar but non complying companies.
  • Total amount of interest-bearing (long or short term) loans shall not exceed 30% of the total market value of assets of the borrowing company unless this value goes below the book value of the assets, with due consideration to the fact that interest-bearing borrowing is impressible regardless of the volume of the borrowed amount.
  • The earnings generated from the illicit component shall not exceed 5% of the total earnings of the respective company, whether such earnings are generated from interest-bearing investment or from the practice of illicit activity, ownership of an illicit item or otherwise. In case certain earnings are not disclosed, they shall be explored with due diligence and prudence.
  • The rates stated in this decision are solely based on diligence and discretion and may therefore be subject to review as necessary.

Secondly

  • If the conditions of this type of companies change to the extent that the foregoing controls are rendered inapplicable, the stocks of these companies shall be sold as soon as practically possible, preferably within a deadline not to exceed ninety (90) days from the date of confirmed change of such conditions.

Thirdly

  • In determining company activities and the stated rates for permissibility to invest or deal in their stocks, reference shall be made to the latest audited or non-audited annual, quarterly or monthly financial statements of these companies.

Fourthly

  • It is not permissible to participate in the incorporation of companies whose articles of association state that their objectives or activities provide for dealing in illicit transactions.

Fifth

  • The investor customer shall dispose of the illicit component of the said companies.

To view the list of Sharia Compliant and Non-Compliant companies Q4-2024

1020

بنك الجزيرة

1120

مصرف الراجحي

1220

مصرف الإنماء

1320

سهل

1202

مبكو

1211

معادن

1213

نسيج

1301

أسلاك

1303

الصناعات الكهربائية

1320

أنابيب السعودية

1322

أماك

1820

مجموعة الحكير

1831

مهارة

1833

الموارد

1835

تمكين

2010

سابك

2030

المصافي

2050

مجموعة صافولا

2070

الدوائية

2081

الخريف

2083

مرافق

2090

جبسكو

2110

الكابلات السعودية

2130

صدق

2150

زجاج

2170

اللجين

2190

سيسكو

2210

نماء للكيماويات

2222

أرامكو السعودية

2230

الكيميائية

2250

المجموعة السعودية

2280

المراعي

2282

نقي

2284

المطاحن الحديثة

2286

المطاحن الرابعة

2300

صناعة الورق

1010

RIYAD BANK

1050

BANQUE SAUDI FRANSI

1080

ARAB NATIONAL BANK

2380

PETRO RABIGH

4072

MBC GROUP

8040

ALLIANZ SF

8120

GULF UNION ALAHLIA

8310

AMANA INSURANCE

1030

SAUDI INVESTMENT BANK

1060

SAUDI BRITISH BANK

1180

Saudi National Bank

4011

LAZURDE

4280

KINGDOM

8100

SAICO

8270

BURUJ

To view the list of Parallel Market (Nomu) Sharia Compliant and Non-Compliant companies Q4-2024

9300

ALWAHA REIT

9513

WATANI STEEL

9515

FESH FASH

9517

MOBI

9521

ENMA ALRAWABI

9523

GROUP FIVE

9525

ALWASAIL

9528

GAS

9531

OBEIKAN GLASS

9533

SPC

9535

LADUN

9537

AMWAJ INTERNATIONAL

9539

AQASEEM

9541

ACADEMY OF LEARNING

9543

NETWORKERS

9545

ALDAWLIAH

9547

RAWASI

9549

ALBABTAIN FOOD

9551

KNOWLEDGE TOWER

9553

MOLAN

9556

NOFOTH

9558

ALQEMAM

9560

WAJA

9562

FOOD GATE

9400

YAQEEN 30

9403

ALBILAD SUKUK

9405

ALBILAD GOLD

9407

ALBILAD US TECH

9401

YAQEEN PETROCHEMICAL

9404

ALINMA SUKUK

9406

ALBILAD MSCI

9408

ALBILAD SAUDI GROWTH

4700

ALKHABEER INCOME

4702

ALKHABEER INCOME 2030

4701

ALKHABEER GROWTH AND INCOME

4703

SEDCO MULTI ASSET