Frequently asked questions

DFM Shari'a Index

Why is the DFM issuing an Islamic Index and what is the importance of it?

Which companies qualify for inclusion in the DFM Shari’a Index (DFMSI)?

Who are the beneficiaries of the Dubai Financial Market Shari’a Index (DFMSI)?

Is the DFM Shari’a Index (DFMSI) being reviewed by the same methodology as the DFM General Index (DFMGI)?

Is the DFM Shari’a Index (DFMSI) a tradable Index?

How is the DFM Sharia’ Index calculated?

Does the DFM Shari’a Index (DFMSI) include historical data and from what date?

Zakat Shares

Is there a difference in the calculation of Zakat on shares of companies if their activities differ?

Should Zakat be paid on profits that have not been realized, in case it was purchased for the purpose of profiting and not for the purpose of trading?

What is the actual percentage for Zakat calculation?

Trading Rights Issues

Is it permissible to trade the subscription rights of the listed companies whether the company is compliant or not with the Shari’a?

Hedging Against Investment and Finance Risks

Is hedging against risks acceptable to Shari’a?

What are the legitimate hedging tools and mechanisms?

Is there a difference between protecting the capital and guaranteeing it?


Can development projects be financed through the issuance of investment Sukuk, and what are the advantages of this financing instrument over those of bonds?

Can Sukuk be traded in the securities market similar to bonds?

Can the originator of the investment Sukuk or the party benefiting from their issuance proceeds, like the Mudarib in financing his project, redeem the Sukuk before maturity by paying their value to the Sukuk holders?

Is it essential with Sukuk to introduce and define an expected rate of return, and if yes, why?

Is it possible to modify the duration of Mudaraba Sukuk, and the rest of their terms?

Is it permissible for the Sukuk manager to give up part of the profit share defined for him in the Mudaraba?


What is the Shari’a rule regarding trading in shares?

Is there a difference in the value and the percentage of Zakat on shares in the case of acquisition of shares for trading or investment purposes?

What is prohibited income?

Which entity can be referred to for the percentage of prohibited income that should be purified?

Who is responsible for purifying the prohibited income and when?

Is it permissible to deal in stocks of companies whose activities include Shari’a compliant and Shari’a repugnant activities, and what are the Shari'a parameters in such cases?

Is it permissible to deal in preferred stocks?

Can I buy shares of non-Shari’a compliant companies and donate a large portion of their profits to charity?

Is it permissible to acquire shares of a company not fully or partially fulfilling Shari’a parameters?

Who is bound by the DFM Shares Standard for Acquiring and Trading of Shares?

What is a short sale and what is the Shari’a rule in this regard?

Is it permissible to subscribe to a company’s shares whose compatibility with the Shari’a is not explicitly stated?

Is it permissible to buy and sell shares on the same day?

Is Margin Trading a Shari’a-compliant?

Is the buying of shares on the margin during the pre-interest period and then selling them and repaying the borrowed amount without incurring any actual interest permissible from a Shari’a perspective?