Damac shares obtain Sharia compliance certificate
The Dar Al Sharia Islamic Finance Consultancy confirmed that the current activities and objectives of Damac Properties are in accordance with the provisions of Sharia
UAE-based developer Damac Properties has obtained Sharia-compliant certification for its shares from Dar Al Sharia Islamic Finance Consultancy for purposes of investment and trading.
This follows a review of activities and financial ratios to ascertain Damac’s compliance with the principles of Sharia as set out under the Accounting and Auditing Organisation for Islamic Financial Institution (AAOIFA) Sharia Standards, Dubai Financial Market (DFM) Sharia Standard, and generally accepted Sharia principles.
Adil Taqi, the group chief financial officer, Damac Properties, said: "We are proud to receive a certification from Dar Al Sharia, confirming that our shares are Sharia-compliant. This certification will open up new horizons for us by attracting a wider range of potential investors that seek Sharia-compliant financial instruments and listed securities for their consistency with Islamic principles and regulations."
The Dar Al Sharia Islamic Finance Consultancy confirmed that the current activities and objectives of Damac Properties are in accordance with the provisions of Sharia.
As per the audited financials of Damac as of 30 June, 2016, the financial ratios (conventional borrowing ratio, conventional investments ratio, liquid assets ratio and non-compliant income ratio) are within the acceptable limits prescribed by the AAOIFA Sharia Standards and the DFM Sharia Standard for share trading.
Damac’s financials will be reviewed on a quarterly basis in order to ascertain the ongoing Sharia compliance status based on any changes in the financial position and activities.