The circular related to the sample of the Sharia-compliant index, which included the financial statements for the fourth quarter of 2013, indicated that the there are 30 companies whose activities and financial conduct comply with the requirements of the Islamic Sharia law as per the legal rules and standards of the Accounting and Auditing Organization for Islamic financial institutions (AAOIFI).
Director of Operations Department at Muscat Securities Market Gamila bint Ali Al-Hamhamia said that the sample of the Sharia-compliant index includes companies from the regular market and others from the parallel market. It also noted that the study, which was conducted by a specialized company, included one company from the third market. However, she added, duo to the lack of liquidity because of weak trading in the third market, that company was excluded from the sample.
Gamila Al-Hamhamia noted that the sample of the new index comprises 30 listed joint stock companies whose activities and financial conduct comply with the requirements of the Sharia law based 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 companies, which comply to the criteria or remove companies that lose their worthiness.
The sample of sharia index comprises the following companies: Al Anwar Ceramic Tiles, Al Jazeera Services, Al Izz Islamic Bank, Bank Nizwa, Construction Materials Industry, Dhofar Beverages, Dhofar Poultry, Gulf International Chemicals, Gulf Mushroom Products, Majan Glass, Muscat Gases, Muscat Threads Industries, National Biscuits Company, Nawras, Oman Chromite and Oman Chlorine.
The sample also includes, Oman Cement, Oman, Oman Fisheries, Oman Flour Mills, Oman Oil Marketing, Oman Refreshments, Oman Sweets, Oman Telecommunications Company (Omantel), Oman Textile Holding, Port Services Corporation, Raysut Cement Company, Shell Oman Marketing, A’Saffa Foods, Voltamp Energy, Al Batinah Development and Investment Company.
Observers indicate that Sharia index helps to attract a new segment of investors as it meets their aspirations because they prefer a reliable terms of 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 Sharia law, according to the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI), covers two aspects: business and financial criteria, so that a company is seen as to be compatible with the requirements of the Sharia.