DFM Shari'a Index expected to attract more Islamic investments

Dubai Financial Market (DFM) has launched the Dubai Financial Market Shari'a Index-DFMSI as part of its goals to be a shari'ah-compliant exchange. This is the first index of its kind in the UAE, and provides a benchmark to measure the performance of shari'ah-compliant listed securities.

There are currently 40 listed companies in the index, including 30 UAE companies and 10 dually-listed companies. The weightage of any company is capped at 10%. All shari'ah-compliant ordinary shares listed on DFM and approved by the DFM Fatwa and Shari'a Supervisory Board are eligible for inclusion in the index. New listings for the index can be considered a month after the first date of trading.

The index can be accessed through DFM's website, mobile apps as well as data dissemination platforms run by the DM and by licensed market data providers. The initial market capitalisation of the index is based on stock prices as on 31 December 2009, with 1,000 points being the base point. The index is calculated on the back of the last trading price of stocks.

Companies in the index will be based on the quarterly-updated list of shari'ah-compliant companies prepared by the DFM Fatwa and Sharia Supervisory Board. The board revises the list in line with DFM's Standard for Issuing, Acquiring and Trading of Shares issued in 2008 (amended 2018).

HE Essa Kazim, Chairman, DFM said, "We believe that the DFM Shari'a Index is a strong push to our efforts to further attract Islamic investments, considering the growing demand from investors across the world for ethical investments that focus on companies adhering ot the Islamic shari'ah or to any other general values related to sustainability and environment protection."

The State of the Global Islamic Economy Report 2018/2019 states that Muslim expenditure globally reached US$2.1 trillion in 2017 while the Islamic finance sector was worth US$2.4 trillion.

According to DFM's FAQ for the DFMSI, buying and selling shares is permissible according to shari'ah law provided the relevant contracts are shari'ah- compliant. Practices such as short, margin and forward sale are not permitted.

Details:

View the DFMSI

ADIB Securities launches Tadawul trading opportunities

ADIB Securities, the brokerage subsidiary of Abu Dhabi Islamic Bank (ADIB), is now enabling GCC citizen customers to trade on the Saudi Stock Exchange (تداول, Tadawul), the Middle East's largest bourse.

The new offering will enable GCC citizens to buy and sell shari'ah-compliant stocks on the Tadawul through ADIB Securities' digital and traditional trading channels.

Khaled Kurdieh, GM, ADIB Securities, said: "At ADIB Securities, we always try and exceed the expectations of our customers by developing leading products and then delivering them with exceptional service."

With a market capitalisation of US$479 billion, the Tadawul is the 26th-largest stock market among 68 members of the World Federation of Exchanges and accounts for 48% of total GCC market capitalisation and 74% of the value traded. 

Over 67% of transactions were carried out on ADIB Securities digital platforms in 2017. Ranked the No. 1 Islamic brokerage in the UAE, ADIB Securities provides a range of products to accompany the bank's wealth management offering. The broker provides trading tools, expert insights, and competitive rates. In addition, ADIB Securities' team of experienced professionals complement the digital offering with personalised advice.

As part of its digital innovation strategy, the bank has also recently optimised its Internet and mobile banking platforms.