CMA LAW: CMA Circular No. (12) of 2026 Regarding the Combination of Providing Sharia Audit Services and the Service of Preparing a Shares Index compliant with the Provisions of Islamic Sharia or the Service of Calculating the Purification of Prohibited Revenues.

Chairman of the Board of Directors
Greetings,

Based on the Capital Markets Authority’s (CMA) role in raising the public awareness of securities activities in accordance with the provisions of Law No. 7 of 2010 Regarding the Establishment of the Capital Markets Authority and Regulating Securities Activities, its Executive Bylaws, and their amendments, with the objective of coordinating and following up with companies addressed by the provisions of the mentioned Law, and to ensure the proper implementation of the provisions of the Executive Bylaws regarding the possibility of combining some Sharia audit services.

The CMA draws your attention to the following:

1. Combining the Sharia audit function with the function of providing either the service of preparing Sharia-compliant share index or the calculation of the purification of prohibited revenues for the same entity is inconsistent with the legal and professional requirements governing independency and objectivity in Sharia audit work, whether conducted through the internal Sharia audit unit or an external Sharia audit firm.

2. Disconnecting the service through a separate contract or internal organizational arrangements is insufficient to address the legal and professional issue when the service provided is linked to the results or outputs that the Sharia auditor will subsequently review or issue a Sharia opinion thereon. This is necessary to maintain independence and professional objectivity and to avoid any potential self-review.

3. These services may be provided by independent Sharia advisory bodies. The above does not apply to cases where the Sharia auditor is not conducting the audit for the same entity, provided that the requirements of independency, conflicts of interest, and all other relevant regulatory controls are adhered to.

4. The above shall not prejudice the responsibility of the External Sharia Audit Office and the Internal Sharia Audit Unit to verify the validity of investments and ensure their compliance with the provisions of Islamic Sharia, and to follow up on the completion of Sharia purification processes in accordance with the approved standards and controls.

Emad Ahmed Tifouni

Issued on: 06/07/2026.

Copy of the Official Document

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