Say hello to the EGX33 Shariah: The bourse’s new shariah-compliant index — dubbed the EGX33 — that was officially launched yesterday was followed by a statement (pdf) from EGX boss Ahmed El Sheikh laying out the ins and outs of the long-awaited index.

The Shariah index will have 33 components each capped at 15%: The index’s 33 listed companies will represent 16 different sectors and have a maximum weight of 15% for any of them. Talaat Mousta Group maxes out cap as the index’s largest component with 15.0%, followed by Elsewedy Electric with 10.3%, and Abu Qir Fertilizers is third largest component with a 9.1% weight.

The selection criteria: Sheikh explained that for the sake of market stability and creating an attractive offer for investors, the index’s components were chosen from EGX100-listed companies whose activities are at least — by revenue — 90% compliant with the shariah will be eligible to join the EGX33, the EGX said in a separate handout (pdf). Companies that are not listed in the EGX100 but have a shariah supervisory board can also be included in the EGX33 provided they meet a minimum liquidity requirement.

The small print: The ratio of interest-bearing investments and loans — including long- and short-term ones — to the company’s total assets or average market value — whichever is bigger — shouldn’t exceed 33%. The company’s liquid assets to total assets ratio also shouldn’t exceed 70%.

In safe hands: The Shariah Supervisory Committee overseeing the index and the methodology to choose its companies is made up of Islamic finance experts and scholars in Islamic law.

It could be popular with investors: Since the start of the year, the index is already outperforming its fellow indices on the EGX, according to the statement. It is hoped that the index will not just be of interest to local investors, but also attract others in the region and globally. Before its launch, there were already “repeated requests from a large number of local, regional, and international investors” for a shariah-compliant index, El Sheikh said.

The index will undergo semi-annual reviews at the end of January and July, with changes reflected at the start of February and August.

HERE COMES THE SHARIAH FUNDS-

We have a timeline on CI Capital’s new fund: CI Capital’s asset management arm CI Capital Asset Management’s new shariah-compliant fund will be launched in 3Q this year, CEO Amr Abol Enein, told CNBC Arabic in an interview (watch, runtime: 4:25). Enien is looking to make the fund one of the country’s five largest and added that his company is looking to drum up most of the fund’s capital from Gulf countries.

AND- Azimut’s shariah fund asks for regulator’s blessing: Asset manager Azimut has filed an application with the Financial Regulatory Authority to launch its new shariah-compliant fund in the EGX33, Azimut Managing Director Ahmed Abou El Saad told Al Borsa. Investors can buy into the new fund right after it secures the required regulatory approvals, he confirmed. The new fund is one of three new investment funds the asset manager wants to launch before the end of the year.

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