As of 1 January 2015, Vodafone Qatar became a 100% Islamic Sharia Compliant company in all of its operations. As one of the most admired brands in Qatar, the Company strives to align with the country’s rich heritage and local values. Although the Company already operated in the permissible industry of telecommunications, there were several steps undertaken to achieve full compliance:
In December 2014, Vodafone Qatar (Wakil) refinanced its three existing intercompany credit facilities into a single $330m, 5-year term Wakala Facility with Vodafone Finance Limited (Muwakil). The new agreement holds a Sharia compliant structure with similar flexibility as previous revolving credit facility, treated as conventional debt for accounting and tax purposes.
the Articles of Association
Vodafone Qatar held an Extraordinary General Assembly meeting 30 June 2015 to amend its Articles of Association and reflect its commitment to Sharia Compliance. For more details on the amendments, please click here.
a Sharia Advisor
Vodafone Qatar has appointed a Sharia Advisor (Dr. Ali Al-Qaradaghi) to oversee the compliance of the Company’s operations and issue an independent opinion following a quarterly review the operations. To view our latest Sharia compliance audit report (Arabic), please click here.
and third party agreements
Vodafone Qatar maintains an ongoing review of all of its commercial activities and third party agreements to ensure that they do not contain any elements which violate Islamic principles.
The decision has been warmly received in the local community, and Vodafone Qatar is considered one of the pioneer institutions outside of the financial industry to adopt full compliance standards. Vodafone Qatar is now part of the minority of companies on the Qatar Stock Exchange which are fully Sharia compliant, meaning that shareholders are not required to perform any disposal on any profits gained from their investment in the company.