Important update regarding shares held in the Sharia portfolio

Dear Client,

The elimination of prohibited income- whether being generated by undertaking a prohibited activity, by ownership of a prohibited asset, or interest- is obligatory on one who is the owner of the share at the end of the financial period.

  • The subject matter of elimination is the prohibited income specific to the share, whether or not the profits have been distributed and whether the corporation has declared a profit or suffered a loss.
  • The figure, whose elimination is obligatory on the owner of shares, is arrived at by dividing the total prohibited income of the corporation whose shares are traded by the number of shares of the corporation. Thus, the figure specific to each share is obtained. Thereafter, the result is multiplied by the number of shares owned by the investor, and the result is what is to be eliminated as an obligation.
  • It is not permissible to utilize the prohibited component in any way whatsoever, even if this is through the payment of taxes.
Emirates NBD Securities LLC