The certification allows brokerage arms of Islamic banks to trade ADNOC Distribution shares.
Monday 26, August 2019 BY KUDAKWASHE MUZORIWA
ADNOC Distribution said that its shares have been certified as Shari’ah compliant based on the recent screening assessment made by the UAE’s Unified Committee of Islamic Banks for Shari’ah Screening of Equities.
The compliance will help the company attract a broader investor base that deals through brokerages of Islamic banks and invests in equities which are deemed as adhering to Islamic principles of investing.
Saeed Mubarak Al Rashdi, ADNOC Distribution’s Acting Chief Executive Officer, said, “This certification paves the way for existing and new shareholders with a preference for Shari’ah compliant stocks to invest in ADNOC Distribution generating a broader investor base and contributing to increased liquidity for our shares.”
ADNOC Distribution recently posted a 4.3 per cent increase in net profit in H1 2019 and a 21 per cent increase in cash flow. Additionally, ADNOC Distribution announced new dividend policy, representing an increase of 63 per cent in the annual dividend for 2019 amounting to AED 2.39 billion and 75 per cent for 2020 (AED 2.57 billion) compared to 2018.
“We are delighted our shares have been certified as Shari'ah compliant for the purpose of investment and trading,” said Al Rashdi.