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» EIFA Partners with WVB for the First Egyptian Shari’a Compliance Index
Dr. Mohamed Al Beltagi -President of the Egyptian Islamic Finance Association (EIFA) - and Lord Philippe O. Piette -CEO of World Vest Base (WVB) - signed an agreement in Cairo on 13th February 2014.
The Agreement is in two parts. The first part includes that the listed Sharia'a compliant companies in Egypt will be screened by WVB as per the EIFA established criteria and will be published on a quarterly basis similar to the actions taken by the Securities Commission Malaysia. The second part covers an understanding of WVB creation of the two Islamic Indexes for Egypt.
"The NAMA' Index serves those businesses and individuals who want to invest in stocks listed on the Egyptian Exchange. It provides a definitive list of those stocks that comply with Shari'a. EIFA will issue the index quarterly" stated Dr. Al Beltagi.
"The Association is very pleased that we partnered with WVB and that EIFA can, after much delay, create an Index that serves those businesses and individuals who want to invest in stocks that comply with Shari’a. EIFA & WVB will review and issue the index components on a quarterly basis. WVB proposes to create two different Shari'a Indexes: Egyptian Shari'a All Share Index and WVB/EIFA 30 Index that will contain 30 of the most traded equities. It is our understanding that the Egyptian Shari'a Indexes will be part of a broader family of worldwide Shari'a indexes" stated Dr. Al Beltagi.
Previously, EIFA officials have stressed the importance of raising the listed companies' level of compliance with AAOIFI regulations to Egypt if the Gulf investors are to be attracted to invest in them.
"If we are serious about peace and economic development, investments must flow freely and easily to enable Egypt to attract capital. For development and expansion, countries as well as companies need to mobilize capital. Many investors wish to comply with Shari’a rules so an informational bridge needs to be built. Therefore, WVB and EIFA have worked co-operatively to produce the NAMA' Index to provide clear and easy to understand ratings for the benefit of both the investors and the companies. The hope is that this will result in a convergence of investments and business that derive benefit for all parties concerned” commented Lord Piette.
The Egyptian Islamic Finance Association
Established in February 2012 to promote compliance with Shari'a in financial transactions and investments in Egypt.
World Vest Base
Established in 1985, WVB has 11 offices and over 400 employees now. WVB specializes in collecting, storing, analysing, and distributing financial and auxiliary data, covering some 158 countries in the spheres of both listed and private companies. The WVB Master Database is the only financial database that includes all disclosed Islamic financial data items. The depth and breadth of the data is unparalleled. Additionally, WVB provides global credit ratings, business risk ratings, and Shari'a compliance ratings.
Further information can be found on: www.wvb.com
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