UAE-based RAK Ceramics, one of the world's biggest producer of ceramics and tiles has received a Shariah-compliance certification for its shares following a quarterly review.
The certification confirms that the business activities of the company is compliant with Islamic Shariah and the financial ratios are within the acceptable limits set by Islamic finance standard-setting body, AAOIFI, the company said in a statement to the Abu Dhabi Securities Exchange, where it is listed.
The certification was issued by Dar Al Sharia, legal and financial consultancy service for Islamic finance transactions in the region and deemed that the company’s shares are Shariah-compliant for the “purpose of investment and trading”, it added.
This certification enables brokerage arms of Islamic banks to trade RAK Ceramic shares and help improve liquidity and depth in the trading of its shares.
The company said last week it made a net profit of 62.7 million dirhams ($17 million) for the first quarter of 2021, more than double its profit in the year-ago period.
(Writing by Brinda Darasha; editing by Seban Scaria)
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