A clarification announcement from Naqi Water Company regarding its Sharia compliance

In line with the transparency principle that Naqi Water Company applies with its shareholders and the public regarding all financial and non-financial data that may affect their investment decisions in the company, and with reference to what has been announced regarding the company’s classification (mixed) from a Sharia perspective, the company would like to inform its shareholders and the public that its shares are Sharia-compliant and not mixed. This is based on the Sharia classification criteria for companies adopted by the entity that published the incorrect classification, as follows:

Firstly, Naqi Water Company operates in a Sharia-permissible field.

Secondly, the company did not borrow or invest in anything that is impermissible

under Islamic and Sharia principles.

Thirdly, the company does not have any revenue from impermissible sources.

– Naqi Water Company confirms to its shareholders and the public that all investment deposits with the company are Islamic Murabaha deposits, and the company’s only loan was also obtained through the Islamic Murabaha approach.

– The company has previously disclosed its Sharia compliance commitment in its prospectus and the Board of Directors’ report for the year 2022, regarding its investments and loans.

– The company has provided all information to several Sharia classification bodies and investment funds interested in the Islamic legitimacy of companies’ shares, which seek accuracy in their decisions and classifications, in commitment to the company’s transparency and disclosure.

– The company has not received any inquiry from the entity that published the incorrect classification, which issued its judgment based solely on the financial statements as the only source for preparing its classification without referring to other disclosure means according to their admission, despite the availability of subsequent data proving the incorrect classification, which led to presenting conflicting data with the objectives of Sharia classification.