The Malta Stock Exchange has launched a new equity index called the MSE Sharia Equity Index, which uses a basis of 1,000. This new index has been certified to be compliant by Dar Al Sharia Ltd, Dubai – the world renowned Islamic finance consultancy firm.
Every quarter, each of the 23 equities traded on the exchange will be screened by Dar Al Sharia for possible inclusion within the index. They will also be screened quarterly by Dar Al Sharia to ensure compliance with Sharia principles.
The first eight Sharia-compliant equities are Malta International Airport plc, Go plc, RS2 Software plc, Medserv plc, Maltapost plc, Grand Harbour Marina plc, 6pm Holding plc and Malta Properties Co plc. Other newly compliant equities will be included in the index once they are certified to be compliant by Dar Al Sharia.
The new MSE Sharia Equity Index is the first step to establishing Malta as a centre for Islamic finance products with a view to attracting Sharia-compliant equities and Sukuk instruments that could be listed and traded in Malta, or listed in Malta, while enjoying the benefits of a regulated EU jurisdiction.
In a statement, the Malta Stock Exchange said it hoped the new index will generate interest from among the many Sharia-compliant fund managers, besides Muslim investor communities all over the world, increase business for the exchange, as well as raise awareness among Muslim companies interested in accessing the European capital markets through the Malta Stock Exchange.
The MSE Sharia Equity Index and related information can be monitored through the MSE website www.borzamalta.com.mt.