The Saudi Exchange has set up a Shariah Advisory Committee as part of its commitment to maintaining the highest standards of governance over investment tools that will be provided by it. The committee was formed on 22 April 2022.
The Saudi Stock Exchange in Saudi Arabia is also known as Tadawul.
Tadawul was formed as a joint-stock company and the sole entity authorized to act as a securities exchange in Saudi Arabia in 2007. The trading in Tadawul began in 1954 as an informal financial market.
The committee is formed of representatives from the largest financial institutions. The representatives are entitled to ensure independence and transparency in the process of decision-making.
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.
The Shariah Advisory committee will be administered by The Saudi Exchange but it will not take an active 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,” it said.
A unified Shariah-compliant rulebook will be published by the committee members that will be approved by the respective Shariah Boards of Committee Members.
Also, the committee will be responsible for overseeing and approving the list of Shariah-compliant listed companies periodically.
This collaboration will enable Saudi Exchange to expand its offering to cover new Shariah-compliant investment tools and products.
Also, the Saudi Exchange would consult the committee from time to time on some of its products and services.
The Saudi Exchange will collaborate with IdealRatings, a leading global Islamic Finance Solutions Provider, to offer Shariah screening services to listed companies within the Saudi capital market, along with the creation of the Shariah Advisory Committee.
