Shari'ah Ratings on Islamic Financial Products

What is Shari'ah rating:

Shari'ah rating is a process the purpose of which is to provide the public with an independent appraisal that assesses the commitment of the management of a financial institution to follow Shari'ah injunctions in their business and to avail Muslims with an unbiased opinion on the Shari'ah quality of the Islamic banking and financial products offered to the public by that institution.

Shari'ah rating is fundamentally different from traditional “credit rating” which assesses the ability of a bank, a company or a bond issuer to fulfill its obligation with respect to debt repayment or determine the credit quality of a negotiable paper. It is not concerned with performance, nor addresses banks abilit...