Our Sharia Compliance

Our World Class Sharia Compliance

At Hejaz Financial Services, we employ a 3-tier Sharia governance process to ensure the Sharia compliance of our services. We begin by subscribing to the leading Sharia Standards stipulated by AAOIFI. Thereafter, we engage the services of IdealRatings to filter the investment universe so that we are left with only Sharia Compliant investments to populate our clients’ portfolios. Lastly, we have appointed a renowned global Sharia Board, GIFS, to oversee our Sharia governance process and to Audit us periodically to ensure that the highest standards of Sharia compliance are upheld.

Our Principles

The Accounting and Auditing Organization for Islamic Financial Institutions(AAOIFI) is an Islamic international autonomous non-for-profit corporate body that prepares accounting, auditing, governance, ethics and Sharia standards for Islamic financial institutions and the industry.

Our Investment Screening

IdealRatings, Inc. is a world-class provider of financial research and data. With its extensive experience in fund management and research, IdealRatings has developed a number of solutions to cater to the different needs of asset managers across the globe. IdealRatings launched its flagship product; Sharia-compliant asset management services, which was a true breakthrough and has indeed taken the industry to the next level.

Our Global Sharia Board

Global Islamic Financial Services Firm propriety limited (GIFS) is a South Africa-based company specialised in providing Sharia Advisory services, supervision, Sharia auditing and human capital development. GIFS provide a superb quality of Sharia advisory and training to Financial Institutions who wish to offer for Islamic Financial Products to their clientele. They offer a diverse range of customised and tailored Sharia Consultancy Services which are seamlessly integrated into practical solutions that suit their clients complex and diverse business needs. Their advisory board comprises of experienced scholars and financial experts who bring their expertise and insight to meet the client’s needs.

Our Sharia Certificates

Four Principles Of Islamic Investing Are:

Avoiding Gharar (Excessive Uncertainty)

Gharar refers to any element of absolute or excessive uncertainty in any business or contract. Gharar may lead to undue loss to a party and unjustified enrichment of another, and is prohibited under Islamic principles. As all business involves some level of risk, a certain level of uncertainty is tolerated. In contrast, where referring to deceit or fraud, gharar is an absolute concept.

Avoiding Riba (Prohibition of interest or usury)

The charging and receiving of interest are strictly forbidden by Islamic Law. This is commonly referred to as riba or usury. If a positive, fixed, predetermined rate is attached to the maturity and the amount of principal (i.e. a guaranteed rate regardless of the performance of the investment), it will be considered riba and is prohibited. The general consensus among Islamic scholars is that riba covers not only usury but also the charging of “interest” as widely practised. Riba encompasses any return of money on money, regardless of whether the interest is fixed or floating, simple or compounded, and at any rate.

Avoiding Non-Permissible Investments

Islamic principles prohibit investment in corporations involved in business activities deemed impermissible under conventional Islamic law. Non-Permissible business activities include the manufacturing or marketing of such products or services as alcohol, pork, tobacco, pornography, prostitution, gambling, weaponry and many forms of entertainment and advertising that are contrary to Muslim values.

Avoiding Maisir (Speculation)

The principle of maisir prohibits speculation or gambling. It is prohibited in Islamic finance to create wealth from chance instead of productive activity.

This principle is the basis for disallowing speculative practices, including conventional insurance. It also prohibits derivatives, forwards, options and futures, which are all considered a form of gambling.

We Avoid Companies And Industries That Affiliate With:

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