S & P
Shariah:
Standard & Poor's has rated a number of Islamic law (or "Shariah") compliant transactions, mostly issued by sovereign, supranational, regional, or government-supported entities. One type of obligations issued for sharia-compliant transactions is the "sukuk" or Islamic notes.
For reasons set out below, Shariah compliance has not featured in Standard & Poor's rating analysis:
- Standard & Poor's does not pronounce on the suitability of a particular obligation from the perspective of Shariah compliance.
- Standard & Poor's understands that Shariah derives from religious sources such as the Koran, accounts of the life of the prophet, and scholarly consensus. In certain countries, Shariah touches almost every aspect of life including social policy, banking, commercial, and economic relationships, while in others its primary influence is in the area of social policy, such as inheritance and divorce matters, with commercial codes (usually derived from continental European and Egyptian antecedents) governing business and contractual matters.
- Standard & Poor's does not review the role or composition of the Shariah board, nor does it opine on the validity of that board's recommendations and decisions.
Articles:
Dow Jones
www.dowjones.com
Awarded Best Islamic Index in 2008.
Articles:
http://www.djindexes.com/mdsidx/?event=showIslamicOverView
http://www.djindexes.com/mdsidx/?event=Sukuk
Founded by Edward Davis Jones, Charles Henry Dow and Charles Milford Bergstresser
Shariah Advisors:
Shaykh Abdul Sattar Abu Ghuddah
Shaykh Nizam Yaquby
Shaykh Dr. Mohamed A. Elgari
Shakyh Yusuf Talal DeLorenzo
Shaykh Dr. Mohd Daud Baker
Dr. Abu Ghuddah is a senior Shari`ah Advisor to Albaraka Investment Co. of Saudi Arabia. He holds a PhD in Islamic Law. Dr. Abu Ghuddah has published many books on Islamic Financial transactions. He was an advisor for Islamic Law Encyclopeadia (Kuwait Awqaf Ministry). Dr. Abu Ghuddah is a member and chairman of seeral reputed Islamic Shari`ah Boards.
MSCI Index
http://www.morganstanley.com/about/press/articles/4797.html
MSCI Barra (Morgan Stanley is the majority shareholder) designed to reflect Sharia investment principles while retaining replicability for international investors. Importantly, the MSCI Global Islamic Indices will incorporate dividend purification rules, resulting in a more relevant benchmark for Sharia portfolios.
