Shariah Compliance

1. Our Commitment to Shariah Compliance

Safa Global Capital Citizens is committed to providing investment opportunities that are fully compliant with Islamic Shariah principles. We have established a comprehensive framework to ensure that all our products, services, and operations adhere to the highest standards of Islamic finance.

2. Shariah Advisory Board

Our Shariah Advisory Board consists of renowned Islamic finance scholars and experts who provide guidance and oversight on all aspects of our operations:

• Review and approve all investment products and structures
• Monitor ongoing compliance with Shariah principles
• Provide guidance on complex Shariah matters
• Conduct regular audits and assessments
• Issue fatwas (religious rulings) when necessary
• Ensure alignment with global Shariah standards

3. Core Shariah Principles

3.1 Prohibition of Riba (Interest)

We do not charge or pay interest on any of our products. Instead, we use profit-sharing arrangements, asset-backed structures, and other Shariah-compliant mechanisms.

3.2 Prohibition of Gharar (Excessive Uncertainty)

All our contracts and investment structures are designed to minimize uncertainty and provide clear terms and conditions for all parties involved.

3.3 Prohibition of Maysir (Gambling/Speculation)

Our investments are based on real economic activities and tangible assets, not speculation or gambling. We focus on productive investments that contribute to real economic growth.

3.4 Asset-Backed Investments

All our investment products are backed by real, tangible assets such as real estate, commodities, and equity in operating businesses.

4. Shariah-Compliant Investment Structures

4.1 Musharakah (Partnership)

We use Musharakah structures where investors become partners in the business, sharing both profits and losses according to their investment ratios.

4.2 Mudarabah (Profit-Sharing)

In Mudarabah arrangements, we act as the manager (mudarib) and investors provide capital (rabb-ul-mal), sharing profits according to pre-agreed ratios.

4.3 Ijarah (Leasing)

For real estate investments, we use Ijarah structures where investors own the asset and lease it to generate rental income.

4.4 Sukuk (Asset-Backed Securities)

Our STAC tokens are structured as Sukuk, representing ownership in underlying assets and providing returns from the performance of those assets.

5. Prohibited Activities and Sectors

We strictly avoid investments in activities or sectors that are prohibited under Shariah law:

• Alcohol and tobacco production or distribution
• Gambling and gaming activities
• Conventional banking and insurance (non-Islamic)
• Pork and non-halal food production
• Entertainment involving prohibited activities
• Weapons and defense manufacturing (except for legitimate defense)
• Adult entertainment and media
• Any activity involving interest (riba)

6. Shariah Screening Process

All potential investments undergo a comprehensive Shariah screening process:

• Business Activity Screening: Review of the company's primary business activities
• Financial Ratio Analysis: Assessment of interest-bearing debt and income ratios
• Revenue Source Analysis: Examination of revenue sources for Shariah compliance
• Ongoing Monitoring: Regular review of compliance status
• Purification Process: Removal of any non-compliant income
• Documentation: Comprehensive documentation of all Shariah decisions

7. Purification of Income

In cases where a small portion of income may be derived from non-compliant sources, we implement a purification process:

• Identify and calculate non-compliant income
• Separate non-compliant income from compliant income
• Donate non-compliant income to charitable causes
• Provide detailed reports to investors
• Ensure transparency in the purification process

8. Regular Shariah Audits

We conduct regular Shariah audits to ensure ongoing compliance:

• Quarterly reviews of all investment products
• Annual comprehensive Shariah compliance audit
• Random spot checks on transactions and activities
• Review of all new products and services
• Assessment of changes in Shariah interpretations
• Documentation of all audit findings and recommendations

9. Shariah Compliance Certificates

We maintain current Shariah compliance certificates from recognized Islamic finance institutions:

• AAOIFI (Accounting and Auditing Organization for Islamic Financial Institutions)
• IFSB (Islamic Financial Services Board)
• Local Shariah advisory firms
• International Islamic finance bodies

10. Investor Education

We provide comprehensive education on Shariah compliance to our investors:

• Educational materials on Islamic finance principles
• Regular webinars and seminars
• Access to Shariah scholars for questions
• Transparent reporting on Shariah compliance
• Guidance on making Shariah-compliant investment decisions

11. Contact Our Shariah Team

For questions about Shariah compliance or to speak with our Shariah advisory team:

12. Shariah Compliance Reports

We publish regular Shariah compliance reports that are available to all investors. These reports include:

• Quarterly Shariah compliance status
• Details of any purification activities
• Updates on Shariah board decisions
• Changes in Shariah interpretations or standards
• Performance of Shariah-compliant investments