The FTSE Global Equity Shariah Index Series is based on the large and mid cap stocks in the FTSE Global Equity Index Series universe. Screening is undertaken by Shariah consultants, Yasaar Limited, against a set of guiding principles. The series has been fully certified as Shariah-compliant through the issue of a Fatwa (Islamic legal opinion) by Yasaar's principals. The screening approach is briefly as follows:
Initially, companies involved in any of the following activities will be filtered out as non-Shariah compliant:
The remaining companies are then screened on a financial basis. The following financial ratios must be met for companies to be considered Shariah-compliant:
Yasaar Limited scholars represent all of the major Shariah schools of thought, creating a best practices approach that has credibility across the Islamic world. More information on Yasaar Limited is provided below or visit their website.
FTSE calculates a number of other Shariah-compliant indices based on other universes, including those listed below. A selection of factsheets for these indexes are included on this webpage. Please refer to the relevant index series webpage for more detailed information, including relevant index rules.