Al Rajhi Capital lists Shariah-compliant stocks on TASI, Nomu

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Al Rajhi Capital’s Shariah Board updated its classification of Shariah-compliant and non-compliant companies on the Main Market (TASI) and Nomu-Parallel Market.

A total of 203 firms and 18 REITs are Shariah-complaint on TASI, while other 15 do not comply with the relevant regulations.

All 91 companies and one REIT are listed as compliant with Shariah guidelines on Nomu.

The Shariah Committee of Al Rajhi Bank issued decision no. 485 on the rules for investing and trading in shares of joint-stock companies. These companies are categorized into three types based on their purpose, activities, and share trading rules:

First type: Companies with permissible purposes and activities. Investing and trading in these shares are allowed under the rules of selling.

Second type: Companies with prohibited purposes and activities, such as those dealing in alcohol, tobacco, pork, gambling, usury-based banks, and other unethical activities. Investment and trading in these shares are strictly forbidden.

The third type of company has permissible purposes but engages in some prohibited activities, such as usurious borrowing. Trading in shares is only allowed when necessary, with preference for companies avoiding interest-based dealings.

Borrowing on an interest basis must not exceed 30% of the market value, or the book value if lower. Revenue from prohibited activities must be under 5% of the total.

 If a company becomes non-compliant, investors must sell their shares within 90 days of becoming aware. Compliance is assessed using the latest available financial statements, whether audited or not.