UAE-based RAK Ceramics announced that, following a quarterly review, it has successfully obtained a Sharia Compliance Certification for its shares from Dar Al Sharia, based on the parameters set by the Accounting and Auditing Organisation for Islamic Financial Institution (AAOIFI).
“The certification confirms that the business activities of the one of the world’s biggest producer of ceramics is compliant with Islamic Shariah and the financial ratios are within the acceptable limits set by Islamic finance standard-setting body, AAOIFI,” the company said in a statement to the Abu Dhabi Securities Exchange, where it is listed.
The company said last week it made a net profit of 62.7 million dirhams ($17 million) for the first quarter of 2021, more than double its profit in the year-ago period.
Dar Al Sharia, legal and financial consultancy service for Islamic finance transactions in the region, deemed that the RAK Ceramics’s shares are Shariah-compliant for the “purpose of investment and trading”, it added.
This certification enables brokerage arms of Islamic banks to trade RAK Ceramic shares and help improve liquidity and depth in the trading of its shares.
Dar Al Sharia is a Dubai-based subsidiary of Dubai Islamic Bank specializing in Sharia-compliant structuring and documentation for all types of Sukuk, Syndication and Funds, Sharia screening of listed shares and private equity, Sharia audit and training, conversion of conventional financial institutions into Islamic ones, and the other allied services.
Source Zawya