The Company conducts comprehensive Sharia analysis of companies by examining their financial statements for the purpose of adherence to the Sharia criteria approved by the Sharia Supervision Board. Moreover, this process is not limited to the local market only but it also includes the regional and global markets.
Generally, the criteria focuses on the company`s nature, activity, and financial structure to access to what extent those companies are in-line with the approved Sharia guidelines set forth by Sharia Supervision Board.
For companies to be Sharia complaint, the borrowing rates should not exceed 33% of the total assets while liquidity rates should not be more than 50% of total assets. And, revenues which are not Sharia compliant should not exceed 5% of total revenues.
Moreover, the process for selecting compliant companies is also subject to other complementary services such as, disposition of unlawful revenues which are not permissible by Sharia (dividend cleansing).
The Company has issued financial indices which are in conformity with Islamic Sharia criteria. Almadar has numerous indices for various regions, countries and sectors including the GCC and the United States
The competent technical team, upon calculating the index, applies the latest globally approved methods & styles in this respect. Consequently, the Indices use the method approved by the International Finance Corporation (IFC).
The Islamic restructuring service has recently been added to the Companys’ Advisor Services. This service