Islamic Economics Institute

Wednesday Academic Dialogue (17-1439)

Do We Need to Review our Starting ?

Towards a Gradual Methodology for

Sharia Stock Rating

Full Text

Dr. Abdelhalim GHERBI

Department of Banking

College of Economics and Administrative Sciences

Al-Imam Muhammad Ibn Saud Islamic University, Riyadh, Saudi Arabia

Wednesday 03-01-2018 (14-04-1439H)


Researchers are used to distinguish between Sharia-compliant companies and non-compliant companies, then a number of terms has appeared such as “pure companies”,” mixed companies” and “illegal companies”; where it can’t be imagined that all the companies are on the same degree of Sharia Quality; So it looks needed to Sharia Stock Rating similar to Credit Ratings by the international rating agencies such as: Moody's, Standard & Poor's and Fitch...

Sharia Rating differs from Credit Rating that focuses on the company solvency and ability to fulfill its obligation. Sharia Rating is complement to the latter. While investors in financial markets check Credit Ratings to avoid the failed companies; Thus is the case with the Islamic stock market investors’ who prefer Top Sharia-compliant companies rated to avoid the lowest purity stock.

This study is to present an appropriate methodology for rating of Sharia–Compliant stocks.

Keywords: Credit Rating, International Rating Agencies, Sharia–Compliant Stocks, Sharia Stock Rating, Sharia Quality Rating, Pure Companies, Mixed Companies.

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Last Update 3/7/2018 11:26:43 PM