Derayah Financial CJSC is a financial services company based in Saudi Arabia, primarily offering investment and asset management services. The company operates in the financial sector, providing solutions in wealth management, brokerage, and financial advisory. It caters to individual investors, institutional clients, and other entities, helping them manage their assets and investments effectively.
Derayah Financial is also involved in providing investment products, such as mutual funds and private equity investments, as well as offering trading services in the Saudi stock market. Their operations are centered on offering personalized financial solutions, leveraging technology and market expertise to help clients achieve their financial goals.
Is Derayah Financial CJSC Shariah Compliant?
The answer is No, Derayah Financial is NOT Shariah Compliant. But why?
In order for a Company in the Financial Services Sector to be Shariah Compliant, the Company MUST fulfil three primary criteria, being:
- An Existence of a Shariah Board, who oversees the operations of the Company, and ensures Shariah Compliance
- A Valid Shariah Certificate, signed off by the Shariah Board Scholars
- No impure income or non permissible products
Reviewing Derayah’s IPO on the same Guidelines, a comprehensive Shariah certification that the company and all its products are in Shariah compliance was not found. While the company does have certain products which are Shariah compliant, there are products which do not seem to be shariah compliant like allowing trading in non shariah compliant stocks and instruments.
Similarly, a comprehensive disclosure of the non-permissible income is not provided, neither are there any documented efforts taken up the Company to purify such income.
Hence, the company FAILS to satisfy the three criteria for Shariah Compliance, rendering the company to be Shariah NOT Compliant.
