--- title: "QE Al Rayan Islamic Index: Methodology" description: "QE Al Rayan Islamic Index is maintained by Qatar Stock Exchange and covers Shariah-compliant companies listed on the Qatar Stock Exchange. How it is weighted." canonical: https://www.getswoopr.com/stocks/indexes/qe-al-rayan-islamic/ source: "Swoopr Investment: https://www.getswoopr.com" --- # QE Al Rayan Islamic Index: What It Measures and How It Is Built ## Direct Answer > The QE Al Rayan Islamic Index is a rule-based measurement of Shariah-compliant companies listed on the Qatar Stock Exchange, maintained by Qatar Stock Exchange. Like every index it owns nothing: it is a number produced by applying a published weighting formula to a selected list of companies, revised on a schedule the provider sets. ## What this index covers The QE Al Rayan Islamic Index covers Shariah-compliant companies listed on the Qatar Stock Exchange, within the Qatar market. Qatar Stock Exchange defines which securities are eligible, how they are selected from that pool, and how much each one contributes to the published number. The index name does not state a fixed company count, so the number of constituents follows the eligibility rules rather than a target. ## How constituents are weighted Weights are fixed by rank rather than by market capitalisation: the top company gets 15%, the second 12%, the third 10%, the next two 7.5% each, the next eight 5% each and the next two 2.5% each, and the remaining 3% is shared equally among the rest. The weighting method is the single biggest driver of how an index behaves. Two indexes covering the same market can diverge for years purely because they weight differently, which is why comparing index levels without knowing the method tells you very little. ## What qualifies for inclusion Shari'a compliant according to the Al Rayan Bank Shari'a Supervisory Board, with an individual shareholder limit of at least 1%. Stocks need annual velocity of 5% or more and trading on at least 80% of days, with exceptions for the ten most traded names, and anything under 0.5% of index free float market capitalisation is screened out. Eligibility rules are the part of an index most readers never look at and the part that decides what it can possibly measure. A screen that excludes a whole sector, or admits only one listing venue, shapes the result far more than any day of trading does. ## How long a listing must exist first Stocks must have been listed on the Qatar Stock Exchange for more than six months at the end of the review period. Non constituents must pass the velocity and trading frequency tests in each of four quarters, while existing constituents are tested on the final quarter only. A seasoning rule is why a large new listing does not appear in an index the week it starts trading. It is a deliberate lag, and it means an index can under-represent a fast-growing part of the market for months at a time. ## When the membership is revised Composition is reconstituted on the first trading day of June and December, based on 12 months of data ending in April and October. A quarterly update takes effect on the first business day of March and September. Reconstitution is the one date an index changes shape by design rather than by price. Funds tracking it have to trade toward the new membership, which is why the schedule matters to anyone holding the tracker rather than only to the provider. ## The rule that surprises people Before ranking, a liquidity scaling factor shrinks the free float market capitalisation of less liquid stocks toward the average ratio of capitalisation to daily traded value, and only the resulting rank decides the weight. ## References - [Qatar Stock Exchange: Qatar Stock Exchange QE Al Rayan Islamic Index Index Methodology and Maintenance version 2.5](https://www.qe.com.qa/documents/20181/445838/QE+Al+Rayan+Islamic+Index_Methodology.pdf/d0ed61f2-399f-b7e7-8af5-09a7d71b45b0), as published 2025. Every rule described on this page is taken from this document. ## Current QE Al Rayan Islamic Index constituents Qatar Stock Exchange publishes and licenses the QE Al Rayan Islamic Index constituent list. Swoopr does not republish it here. The provider's own page is the authoritative source for current membership and weights. [Qatar Stock Exchange: official QE Al Rayan Islamic Index page](https://www.qe.com.qa/indices) ## Related reading - [All stock market indexes](https://www.getswoopr.com/stocks/indexes/): how indexes are built, weighted and revised. - [Emerging Markets indexes](https://www.getswoopr.com/stocks/indexes/emerging-markets/): others covering the same region. - [Index concentration](https://www.getswoopr.com/technical-analysis/market-concentration/index-concentration/): measuring how much of an index sits in its largest holdings. - [Index rebalancing and inclusion effects](https://www.getswoopr.com/stocks/corporate-actions-catalysts/index-rebalancing-and-inclusion-effects/): what happens to a stock when index membership changes. ## Frequently Asked Questions ### Who maintains the QE Al Rayan Islamic Index? Qatar Stock Exchange maintains the QE Al Rayan Islamic Index and publishes the methodology document that defines its eligibility and weighting rules. ### What does the QE Al Rayan Islamic Index measure? It measures Shariah-compliant companies listed on the Qatar Stock Exchange. The index is a calculated number applying a weighting formula to a selected list of companies, and it holds nothing itself. ### Where can I see the current QE Al Rayan Islamic Index constituents? Qatar Stock Exchange publishes the current constituent list. Swoopr does not republish it, because index providers license constituent data and Swoopr holds no such licence. ## About the author The [Swoopr Editorial Team](https://www.getswoopr.com/authors/swoopr-editorial-team/) writes Swoopr Investment's educational library, covering market structure, analysis methods and the mechanics behind the numbers investors read every day. Our [editorial policy](https://www.getswoopr.com/legal/editorial-policy/) and [corrections policy](https://www.getswoopr.com/legal/corrections-policy/) set out how this content is produced, reviewed and fixed when it is wrong.