The Dubai Financial Market’s (DFM) will set standards to classify listed firms in terms of Sharia-compliance and accounting practices.

The decision was taken by the DFM Sharia board at its first meeting, held under the chairmanship of Dr Hussain Hamid.

Dr Hamid said the conversion of DFM to a Sharia-compliant market was indeed a challenge for the board.

'With this move, DFM will become an international symbol for investing in Islamic securities,” he noted.

DFM chairman Essa Kazim, thanking the Sharia board for its confidence in DFM, said the market’s operations will continue to abide by Sharia principles.

He pointed out that DFM’s conversion to an Islamic market will make it the first Islamic financial market in the world.

The Sharia board approved all documents and contracts related to the establishment of DFM. The board also decided to start working on structuring criteria that will be used by DFM to classify listed companies in terms of Sharia compliance.

The board has adopted an action plan to implement the project, Dr Hamid said, adding that the plan will be further discussed at the next meeting.

The board also approved that investments made by DFM Company are Sharia-compliant. The board adopted all the Fatwas issued by the board’s chairman in response to the DFM management’s queries.

The board also confirmed that the DFM conversion process to an Islamic market is being implemented according to Sharia principles. The board also approved printing a booklet for investors on how to invest in financial markets as per Sharia principles.

Those who attended the meeting include board general secretary Dr Mubad Ali Al Jarihi and members Dr Abd Al Sattar Abu Gheda, Dr Ojail Jasim, Dr Mohammed Qassim and Motaz El Demerdash, representing DFM Company. TradeArabia News Service