[2008-04-16]  DFM reveals share of dividend non-compliant with Shariah law
The Dubai Financial Markets (DFM) Shariah Board announced yesterday that 3.66 per cent DFMs 2007 cash dividend that has been distributed to shareholders is to be considered non-compliant with Sharia law.

Hussein Hamid, Chairman of the DFM Sharia Board, said: "In line with Dubai Financial Markets objective to become the first Islamic financial market in the world, and as part of our commitment to the principles of Shariah in all market transactions, we have determined that the percentage of the 2007 dividend that is non-compliant with Shariah law is 3.66 per cent."

DFM shareholders have already received the cash dividend of 10 per cent that was approved during the companys Annual General Meeting held on March 25. The dividends distribution followed the issuing of Islamic standards for acquiring and trading of shares of companies listed on DFM. These Islamic standards were established in order to enable DFM to become the first Islamic financial market in the world.

Dr Hamid added: "To give an example of what this means, take a hypothetical share amount valued at Dh100,000. A 10 per cent cash dividend of that share is worth Dh10,000. Since 3.66 per cent of that cash dividend has been declared non-compliant with Sharia law, Dh366 is the non-compliant amount. We suggest that amount be given to charity."

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