The Saudi Stock Exchange, or Tadawul, has announced the formation of a shariah advisory committee.
The move is designed to “maintain the highest standards of governance” over its investment products, stated the exchange.
The committee will comprise members of the largest financial institutions in the kingdom. It will be expected to work on developing a “unified shariah-compliant rulebook” that can be approved by the committee members’ respective shariah boards.
Responsibility for overseeing and approving the list of shariah-compliant companies listed on the exchange will also fall on the committee.
While the Saudi Exchange will oversee the committee, it will not actively take part in the selection or screening process.
The exchange also plans to provide shariah-screening services of its listed companies, in collaboration with IdealRatings.
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