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The PEX launches Al-Quds Islamic Index

2022-06-12

Palestine Stock Exchange PEX has launched Al-Quds Islamic Index that comes in implementation of the general strategic plan of Palestine Capital Market Authority PCMA for the years (2021-2025) regarding developing of an ecosystem for Islamic financial services in Palestine. The Index includes 13 listed companies with total market capitalization of around $781 million from all market sectors. The listing on the Islamic Index follows several terms, including: the companies that have a Sharia committee with binding decisions, or companies with Shariah-compliant activity, or companies with mixed activities whose objectives are Shariha-compliant, but have activities that are not Sharia- compliant, along with the following criteria: the total amounts of borrowed money with interest should not exceed 30% of the total assets, the total amounts of invested/deposited money with interest should not exceed 30% of the total assets, revenues that are not compliant with Islamic Sharia shall not exceed 5% of total revenues, and expenses that are not compatible with Islamic Sharia should not exceed 5% of the total expenses. However, several companies cannot be included in the Index such as: traditional banks that are characterized by an activity that does not comply with Islamic Sharia in terms of lending and borrowing with interest, traditional insurance companies, traditional financing companies, and companies whose objectives include activates that violate Shariah Standard number (21) (Securities-Stocks and Bonds).  In addition to distressed companies, doubtful continuity companies, companies that are suspended from trading, or in process of conducting a merger, or similar action.