The Capital Market Authority has launched special standards for the listing of shares of public shareholding companies, listed on the Palestine Exchange, that are compatible with Islamic Sharia principles. These companies will be included in a dedicated index named after the eternal capital of Palestine, called the ‘Al-Quds Islamic Index.’
This initiative is in line with the objectives that the Capital Market Authority seeks to achieve, specifically within its strategic plan 2021-2025, related to developing the ecosystem for Islamic financial services in Palestine.
The standards include issuing regulatory controls to create an Islamic index based on Standard No. (21), which is related to financial transactions in securities including stocks and sukuks, issued by the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI).
In the same vein, this decision provides greater capacity to meet the needs of investors seeking Sharia-compliant investment opportunities, and keeps pace with the increasing demand for ethical investment by investors in Islamic countries and beyond.
The process of reviewing and certifying the shares of the companies included in this index will be conducted annually, in conjunction with the announcement of the list of Sharia-compliant companies, and is prepared in accordance with the Palestine Exchange standard for issuing, owning and trading shares.
It is worth noting that the Higher Sharia Supervisory Board adopted the regulatory criteria for the Islamic Index guidelines for companies listed on the Palestine Exchange during their Special Meeting No. (4) of 2021.