Under the agreement, FTSE together with SGX and Yasaar Research will create a set of Shariah-compliant indices. The indices will be designed using internationally recognised standards, are free-float adjusted and based on the Industry Classification Benchmark (ICB). The new FTSE-SGX Shariah Index Series comprises stocks screened for Shariah-compliance using Yasaar Research’s proprietary screening methodology which is backed by a panel of distinguished Shariah Scholars.
The first index of the Series, the FTSE-SGX Asia Shariah 100 Index, is expected to be launched in February 2006.
Mr Heng Swee Keat, Managing Director of the Monetary Authority of Singapore (MAS), said, “I congratulate Singapore Exchange, FTSE Group and Yasaar Research on this project to develop a series of Shariah-compliant indices. The availability of such a set of Shariah-compliant indices that can be used by SGX, would contribute to the development of new Islamic financial products in Singapore. This would add to the range of products available to global investors, including the Middle East, who may be keen on Shariah-compliant investments in Asian markets.”
Mr Donald Keith, Deputy Chief Executive of FTSE International said, “FTSE is pleased to extend its portfolio of products to include this exciting project with SGX and Yasaar Research. This demonstrates again FTSE’s credentials as the leading international partner for index solutions.”
Mr Majid Dawood, CEO of Yasaar LLC and President of Yasaar Research Inc. said, “This is an exceptional opportunity for Yasaar to partner with leading institutions in their respective fields to develop innovative world-class financial products for the global Shariah-compliant investor. The commitment of the Singapore authorities, the dedication and determination of the people at Singapore Exchange, FTSE and the Shariah Scholars has, in my experience, been incomparable. These efforts and initiatives will not only enhance the Islamic Banking and Finance field but also provide the platform for further products for investors worldwide.”
Mr Hsieh Fu Hua, CEO of SGX, said, "This collaboration comes at a time when Singapore and the rest of the region are experiencing greater demand for Islamic investment opportunities. Offering Islamic indices on SGX is key to our development as an Asian Gateway.”
