Al Naqool says stock Shariah compliant

Logo of Mohammed Hassan Al Naqool & Sons Co.

Mohammed Hassan Al Naqool & Sons Co. denied a claim classifying its stock as being hybrid and not fully Shariah-compliant, affirming its compliance with the Shariah standards for companies and approved by the entity that published the incorrect disclosure.

Al Naqool stressed that it operates in a Shariah-permissible field, adding that it does not have any prohibited dealings in investment, revenue, or loans.

All of the company's four loans that were disclosed are Murabahah loans that comply with Islamic Sharia, it noted.

Al Naqool also 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, Al Naqool’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.