Philippine exchange to approve Shariah-compliant firms

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Philippine MuslimsThe Philippine Stock Exchange (PSE) in December 2013 will designate its first Shariah-compliant companies, in a bid to keep Muslim savers’ money in the country’s southern Mindanao province in the Philippines rather than send it to Islamic markets abroad.

The move would involve up to 50 companies out of about 300 listed on the PSE and could lead to the creation of a Shariah index on the exchange as it has been discovered that Muslim investors in the region were buying shares in Shariah-compliant companies on exchanges in neighbouring Malaysia and Indonesia, countries with the region’s largest Muslim populations.

Over the past few months, the Philippine central bank has been pushing several initiatives to develop the Islamic finance sector and encourage financial inclusion of the Muslim minority. The central bank has asked congress to have its charter amended, a move that would allow it to provide Shariah-compliant instruments to Islamic banks, in particular interbank lending products.

The PSE’s Shariah plan comes as the exchange is in the midst of a series of initiatives aimed at boosting participation on the exchange, as well as upgrading its infrastructure.

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Reading Time: 1 minute

The Philippine Stock Exchange (PSE) in December 2013 will designate its first Shariah-compliant companies, in a bid to keep Muslim savers’ money in the country’s southern Mindanao province in the Philippines rather than send it to Islamic markets abroad.

Reading Time: 1 minute

Philippine MuslimsThe Philippine Stock Exchange (PSE) in December 2013 will designate its first Shariah-compliant companies, in a bid to keep Muslim savers’ money in the country’s southern Mindanao province in the Philippines rather than send it to Islamic markets abroad.

The move would involve up to 50 companies out of about 300 listed on the PSE and could lead to the creation of a Shariah index on the exchange as it has been discovered that Muslim investors in the region were buying shares in Shariah-compliant companies on exchanges in neighbouring Malaysia and Indonesia, countries with the region’s largest Muslim populations.

Over the past few months, the Philippine central bank has been pushing several initiatives to develop the Islamic finance sector and encourage financial inclusion of the Muslim minority. The central bank has asked congress to have its charter amended, a move that would allow it to provide Shariah-compliant instruments to Islamic banks, in particular interbank lending products.

The PSE’s Shariah plan comes as the exchange is in the midst of a series of initiatives aimed at boosting participation on the exchange, as well as upgrading its infrastructure.

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