Naqi Water says stock Shariah compliant

One of Naqi Water production line

Naqi Water Co. denied a claim classifying its stock as being hybrid and not fully Shariah-compliant, affirming its compliance with the Shariah standards adopted for securities trading and approved by the entity that published the incorrect disclosure.

Naqi Water stressed that it operates in a Shariah-permissible field. The company did not borrow from any entity or invest in any asset illegitimate by the Islamic and Shariah principles, with no revenue generated from impermissible sources.

All investment deposits by the company are Islamic Murabaha. Only one loan was obtained through the Islamic Murabaha approach, Naqi Water said.

The company had previously disclosed its Shariah compliance commitment in its prospectus and its 2022 board report, regarding its investments and loans.

Naqi Water stressed the provision of all relevant information to several Shariah classification bodies and investment funds interested in the Islamic legitimacy of companies’ shares, which seek accuracy in their decisions and classifications. This is in commitment to the company’s transparency and disclosure.

The company also indicated receiving no inquiries from the entity that published the incorrect classification, which issued its judgment based solely on the financial statements, without referring to other sources. This led to the publishing of data conflicting with the objectives of Shariah standards.

According to the statement, Naqi Water’s disclaimer came in line with its transparency principle that it applies to its shareholders and the public regarding all financial and non-financial data that may affect their investment decisions in the company.