The QE Al Rayan Islamic Index is the Qatar Stock Exchange's Shariah-screened benchmark: 23 listed companies as of 1 September 2026, drawn from stocks that hold a fatwa from AlRayan Bank's Shari'a Supervisory Board and weighted on a fixed ladder that caps the largest member at 15%. QIB (QIBK) holds that 15% slot and Ooredoo (ORDS) the 12% second slot. The index launched on 7 January 2013 with a base level of 1,000 at 3 January 2007, is calculated in real time by QSE, and is the underlying for the Al Rayan Qatar ETF. The methodology, version 2.5 valid from January 2025, is public on the QSE site. The financial ratios behind the fatwa are not. Our halal stocks hub covers screening in general; this article covers the one index Qatar actually publishes.
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What the index is and who runs it
QSE's methodology document describes two versions: the QE Al Rayan Islamic Index, a total return index with mnemonic QERI, and the QE Al Rayan Islamic Index (Price), a price return index with mnemonic QERP. Both are divisor indices, meaning the level is the index-share market capitalisation of the constituents divided by a divisor that is adjusted for corporate actions and composition changes. QSE is the compiler, responsible for daily calculation, and an Index Committee is the supervisor, responsible for the rules and the periodic selection. Both share the same Bloomberg and Reuters codes as their mnemonics. Only regular market trades of QAR 1,000 or more feed the calculation.
The total return version reinvests dividends on the ex-date, which the document defines as the day after the AGM, after applying a dividend purification factor supplied by Al Rayan Investment. That is an unusual feature: the index itself strips out the impermissible portion of dividends before reinvesting them, so the QERI series already reflects purification. For a direct shareholder, the same purification has to be done by hand, and our working method for purifying QSE dividends shows how.
Who decides which stocks are Shariah-compliant
The index universe is defined as all equities listed and available for trading on the QSE main market for six months or more at the end of the review period which have been granted a fatwa by AlRayan Bank's Shari'a Board as Shariah-compliant. That is the entire screening statement in the document. It does not publish the debt-to-market-cap ratio, the impermissible income threshold or the liquid assets test that the board applies, and it does not say how often the board re-examines each company. The index is, in effect, a liquidity-filtered publication of one bank's fatwa list.
That has two consequences. First, if you follow a different screening standard, for example the AAOIFI ratios that our AAOIFI screening explainer for Qatar investors sets out, you may reach a different list, and the index gives you no way to check. Second, the list is as good as the board's diligence, and AlRayan Bank's board has the strongest incentive in the market to get it right, since its parent sits in the index itself. We regard the fatwa list as a reasonable default for a Qatar-only portfolio, and recommend running your own ratio check on any holding above a few percent of your portfolio.
The liquidity and ownership filters that follow the fatwa
A fatwa gets a stock into the universe; the methodology's filters get it into the index. Constituents must have an individual shareholder limit of at least 1%. Outside the ten most-traded stocks by average daily traded value, a stock must have recorded annual velocity (traded value divided by average daily market capitalisation) of 5% or more, and must have traded on at least 80% of trading days. Existing constituents are tested on the final quarter of the review period; new entrants must pass in each of the four quarters. A stock suspended for more than five trading days in the two weeks before a review is excluded, and a constituent suspended for 30 trading days is removed automatically.
The qualifying list is then weighted by index free float, which the document defines as total shares less government and affiliate holdings, founder and board holdings, and any single holding of 10% or more other than Qatari pension funds. Any stock below 0.5% of free-float capitalisation drops out. A liquidity scaling factor reduces the free-float capitalisation of stocks whose capitalisation-to-traded-value ratio is above the index average, so that thinly traded large caps do not dominate. The result is a ranking, and the ranking drives the weights.
The fixed weight ladder
Unlike a pure capitalisation index, the Al Rayan Islamic Index assigns weights by rank on a published ladder. The number of constituents is not fixed, so the bottom rung absorbs however many stocks qualify after the first fifteen.
| Rank | Weight |
|---|---|
| 1st | 15% |
| 2nd | 12% |
| 3rd | 10% |
| 4th and 5th | 7.5% each |
| 6th to 13th | 5% each |
| 14th and 15th | 2.5% each |
| All remaining constituents | 3% shared equally |
The ladder is applied at the semi-annual reviews in June and December and reapplied, using the previous ranking, at the quarterly reviews in March and September. Between reviews, weights drift with prices. The ladder means the top three names carry 37% of the index on reset day and the bottom eight or so share 3% between them, so the index is far more concentrated than a glance at 23 names suggests.
The constituents as of 1 September 2026
QSE publishes the constituent list as a spreadsheet on its Index Constituents page. The file dated 1 September 2026 lists 23 tickers in this order: QIBK, ORDS, IQCD, MARK, QIIK, QNNS, QFLS, MPHC, DUBK, VFQS, QEWS, BRES, QAMC, IGRD, UDCD, ERES, AHCS, BLDN, MEZA, QNCD, QISI, MCGS, MERS. The first two rows carry computed weights of 15% and 12%, matching the ladder; the remaining weight cells are formulas the file does not resolve, so we do not state them. Total index-share market capitalisation in the file is approximately QAR 87 billion.
In plain names, the list includes all four of Qatar's Islamic banks, QIB (QIBK), Masraf Al Rayan (MARK), QIIB (QIIK) and Dukhan Bank (DUBK), plus Qatar Islamic Insurance (QISI), the two telecoms Ooredoo (ORDS) and Vodafone Qatar (VFQS), Industries Qatar (IQCD), the dairy producer Baladna (BLDN) and the healthcare and contracting group Estithmar Holding (IGRD). Five of the 23 are Islamic financial institutions, which is a feature of a market where the conventional banks are excluded by definition and the Islamic banks are large. Readers who want a Qatar-only halal equity exposure should notice that this is partly a bet on Islamic banking itself; our QIB profile explains why that single name carries the top slot.
The review calendar and what triggers a change
Composition is reviewed twice a year, effective the first business day of June and December, using twelve months of data ending in April and October respectively. Weights are reset at those reviews and again at the quarterly reviews effective the first business day of March and September. QSE announces inclusions and exclusions at least six trading days before they take effect, with the full weightings, and publishes the final composition after the close on the day before the effective date. Methodology changes carry at least one month's notice.
- A cash takeover removes the target at its closing price and the divisor is adjusted
- A share-for-share merger replaces the constituent with the surviving company if it still qualifies
- A rights issue adds the new shares on the ex-date with an adjusted price, and the issue may suspend trading in the stock around the AGM
- Bonus issues and splits change the share count without changing the divisor, since company value is unchanged
- A spin-off adjusts the parent's price and the new company waits for the next review, with the six-month listing rule waived
- Thirty trading days of suspension removes a constituent automatically with no replacement until the next review
How a retail investor can use the index
There are three ways. The simplest is the Al Rayan Qatar ETF, which the methodology lists as the index's linked product and which trades on QSE like a share; our full analysis of the Al Rayan Qatar ETF (QATR) covers its tracking, fees and distributions. The second is to use the constituent file as a buy list and hold the stocks directly through a broker, applying your own weights; our guide to opening a brokerage account in Qatar for halal investing explains the NIN and broker steps. The third is to use the list as a negative screen, holding only stocks that appear on it even if you weight them differently.
Whichever route you take, the index's manager, Al Rayan Investment, is also the source of the purification factors, and its site describes products across Qatar and Gulf equities, global sukuk and money markets, authorised by the QFC Regulatory Authority and regulated by the QFMA. For the broader picture of what a Qatar-based Muslim investor can hold, our investing hub is the starting point, and our guide to investing on the QSE the Shariah-compliant way covers the exchange from the ground up.
The limits of the index as a halal screen
Four limits deserve stating. The screening ratios are private to AlRayan Bank's board, so you cannot audit a constituent's compliance from the methodology. The index is concentrated by design, with 37% in three names on reset day. It is domestic only, which in Qatar means heavy exposure to hydrocarbons, banking and a small consumer sector, so it is a satellite rather than a core holding for anyone with access to global sukuk or Shariah equity funds. And it screens companies, not your broker: holding an index stock on margin through a conventional broker would undo the compliance the index provides.
Our view
For a Qatar resident who wants local halal equity exposure without doing ratio arithmetic, the QE Al Rayan Islamic Index is the right reference list and the ETF is the right instrument, with the caveat that the position is concentrated and should sit alongside sukuk and international Shariah funds rather than replace them. For a direct stock picker, the constituent file is a sound starting universe, and the discipline it enforces, six months listed, 5% velocity, 80% trading days, is a reasonable liquidity floor for a retail portfolio.
For anyone who follows a stricter screening standard than a single bank's fatwa, treat the index as a first filter and run your own AAOIFI check on each holding. Facts checked against qe.com.qa, alrayaninvestment.com, alrayan.com on 21 September 2026.
Frequently asked questions
How many stocks are in the QE Al Rayan Islamic Index?
Twenty-three, according to the constituent file QSE published for 1 September 2026. The number is not fixed by the methodology: every listed stock that holds an AlRayan Bank Shari'a Board fatwa and passes the liquidity and free-float filters is included, and the count changes at the June and December reviews.
Who decides whether a stock is Shariah-compliant for the index?
AlRayan Bank's Shari'a Supervisory Board. The QSE methodology defines the index universe as listed stocks that have been granted a fatwa by that board. The board's financial ratio thresholds are not published in the methodology, so investors cannot replicate the screen from public documents.
What is the biggest holding in the index?
QIB, ticker QIBK, at the 15% top slot in the 1 September 2026 file, with Ooredoo (ORDS) at 12%. The methodology fixes weights by rank: 15%, 12%, 10%, two at 7.5%, eight at 5%, two at 2.5%, and 3% shared among the rest. Weights are reset at each quarterly and semi-annual review.
Is there an ETF that tracks the Al Rayan Islamic Index?
Yes. The methodology lists the Al Rayan Qatar ETF as the index's linked product, with ISIN QA000A1RRAX6. It trades on the Qatar Stock Exchange and can be bought through any QSE-licensed broker once you hold an investor number from Edaa.
Are dividends from index stocks purified?
Inside the total return index, yes: dividends are reinvested after a purification factor supplied by Al Rayan Investment. If you hold the shares directly, you receive the full dividend and must purify the impermissible portion yourself, using the company's accounts to estimate non-compliant income.
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When does the index composition change?
Composition changes on the first business day of June and December, based on data to the end of April and October. Weights are also reset on the first business day of March and September. QSE announces changes at least six trading days in advance with full weightings, and removes any stock suspended for 30 trading days immediately.
