UP
Quality Rating
UP, operating in its industry, exhibits challenges in achieving Shariah compliance primarily due to a high debt-to-market-capitalization ratio of 48.02%, which surpasses thresholds set by major standards including AAOIFI (30%), MSCI (33.33%), and S&P (33%). Although business activities in private aviation services are deemed permissible with no identified non-compliant revenue streams and interest income at the compliant threshold of 5.22%, the elevated leverage results in exclusion from all major Shariah indices. Regional assessments show variation, with potential compliance under Malaysian asset-based criteria but non-compliance in stricter GCC and global frameworks. The overall status is NON_COMPLIANT based on index inclusion, though ongoing deleveraging could improve future prospects. Investors are advised to monitor financial health and consult scholars for personalized rulings.
Purification Required
Significant purification required - exercise caution
Index Inclusion
Not included in any of the major Shariah-compliant indices: S&P Dow Jones, MSCI Islamic, FTSE Shariah, or Dow Jones Islamic Market.
Key Compliance Considerations
- Debt ratio of 48.02% exceeds thresholds across AAOIFI (30%), MSCI (33.33%), and S&P (33%) standards
Debt Ratio
48.0%
Liquidity Ratio
17.6%
Interest Income Ratio
5.2%
Purification
5.22%