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Dubai: The FTSE Group (FTSE), a global index company, plans to launch a series of regional indices including both general and Sharia indices, Imogen Dillon Hatcher, managing director, Europe, Middle East and Africa, said in Dubai yesterday.
FTSE and Yasaar Research (Yasaar) yesterday launched the FTSE Sharia Global Equity Index Series, with the launch of 96 new Sharia-compliant indices, including the FTSE Sharia Developed Index Series, the FTSE Sharia Emerging Index Series; the FTSE Sharia All-World Index Series; and FTSE Sharia Multinationals 150 Index.
FTSE group, a relatively late entrant in the Gulf region is already negotiating with a number of Gulf based institutions and stock exchanges to launch client specific indices.
"We do a lot of customised indices for our clients. Apart from the Sharia indices we are also looking at GCC specific indices for structured products," Hatcher said.
Last year, FTSE signed a Memorandum of Understanding with Abu Dhabi Securities Market to develop exchange-traded funds (ETF).
By April this year the company expects to launch FTSE DIFX UAE benchmark that will cover 20 to 25 leading local stocks.
"We want to play a big role in the regional ETF market as and when it develops. Globally we are big in ETF market with about $25 billion worth assets under our benchmark.
Screening
Among Sharia indices, the FTSE Sharia Global Equity Index Series uses asset-based debt screening, a more conservative approach to Sharia compliance. This ensures that companies do not pass the screening criteria due to market place fluctuation, allowing the methodology to be less speculative and more in keeping with Sharia principles.
"The growth of the Islamic market is such that investors have come to demand choices. The FTSE Sharia index series serve those growing demands in a transparent, timely and Sharia-compliant manner, enabling the creation of products based on these indices which will give greater beneficial choice and thereby engender the Islamic finance industry generally," said Majid Dawood, CEO of Yasaar Limited and president of Yasaar Research.
The FTSE Sharia Global Equity Index Series comprises large and midcap stocks from the FTSE Global Equity Index Series and has been designed to be used as the basis of Sharia-compliant investment products.
The FTSE Sharia Global Equity Index Series is made up of 96 indices, 12 of which are calculated in real time.
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