ADX, FTSE Russell debut Shariah-compliant index: The Abu Dhabi Securities Exchange (ADX) and FTSE Russell launched the FTSE ADX 15 Islamic Index (FADXI15), their latest addition to the FTSE ADX Index Series, addressing rising demand for Shariah-compliant investments in the region, according to a pressrelease(pdf). The new index provides Islamic finance investors with access to the top 15 ADX-listed Shariah-compliant companies, screened by IdealRatings.

The details: The index caps the largest company’s weight at 33%, with any remaining company weight not exceeding 18%.

What they said: “With over AED 2.6 tn market value of Shariah-compliant financial instruments, ADX is well-positioned to lead in this space, providing innovative products such as ETFs and guiding investors toward companies aligned with their values,” ADX Group CEO Abdulla Alnuaimi, said.

The index has been in the works for a while now: ADX disclosed that it was developing its own Islamic index in September, which will include an endowment shares service to donate shares for charitable causes. AlNuaimi confirmed to EnterpriseAM UAE that a new index is set for launch by late 2024 or early 2025.

Emirati stocks held a 13.12% share of the FTSE index across the MENA region as of the end of September 2024, Fiona Basset, CEO of FTSE Russell told Al Bayan.

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