These indices are intended to facilitate the creation of investment products like tracker funds, index certificates, warrants, ETFs and also pave the way for the introduction of exchange traded index derivatives including futures and options, providing a new paradigm in the growth of capital markets in the region.
The FTSE/DIFX indices will be the first set of real-time indices for the GCC region. The three new indices, which will begin calculation on 12th June will be:
FTSE DIFX UAE 15 Index (UAE Residents)
Based on the top 15 eligible companies when ranked by full market capitalisation from the United Arab Emirates.
FTSE DIFX Kuwait 15 Index (GCC residents and International Investors)
Based on the top 15 eligible companies from Kuwait, when ranked by full market capitalisation.
FTSE DIFX Qatar 10 Index (GCC residents and International Investors)
Based on the top 10 eligible companies from Qatar when ranked by full market capitalisation.
Shariah-compliant editions of these indices will also be available later in the year. Shariah screening is undertaken by Yasaar Research.
Donald Keith, Deputy Chief Executive of FTSE Group, said, “FTSE is honoured to bring its international indexing expertise to this exciting new market. By creating this first phase of tradable indices we hope to improve transparency and liquidity in these markets and facilitate the creation of products that will allow both domestic and international investors to invest in these exciting markets.”
Nasser Alsha’ali, Chief Operating Officer of the DIFX said, “FTSE has a long-standing and proven track record for working with exchanges in developed and emerging markets around the world. With FTSE, we have created the first phase of a viable family of indices that we hope will build bridges between markets.”
