UAE’s ADX, FTSE Russell launch FTSE ADX 15 Islamic Index

ABU DHABI / WAM

FTSE Russell, an LSEG business, and Abu Dhabi Securities Exchange (ADX) have launched the FTSE ADX 15 Islamic Index (FADXI15), enhancing ADX’s leadership in the GCC and establishing a next-generation benchmark for the growing market. The new index addresses the rising demand for Shariah-compliant investment products, providing a dedicated solution for Islamic finance investors within the broader FTSE ADX Index Series.
According to the Islamic Finance Development Report 2023, the global Islamic finance industry experienced substantial growth, with assets rising by 11 percent in 2022 to reach $4.5 trillion, Islamic banking constituting 72 percent of this total. Since 2012, the industry has grown by 163 percent and is expected to expand to $6.7 trillion by 2027.
Abdulla Salem Alnuaimi, Group Chief Executive Officer of ADX, said, “The FTSE ADX 15 Islamic Index, our 16th index, underscores ADX’s commitment to supporting the strong demand for Islamic finance tools. This index offers investors access to a diverse selection of high-performing ADX companies that meet rigorous Shariah compliance standards. With over AED2.6 trillion in Shariah-compliant financial instruments, ADX is well-positioned to lead by providing innovative products such as ETFs, guiding investors towards companies aligned with their values.”
Fiona Basset, CEO of FTSE Russell, said, “We are thrilled to partner with ADX to introduce the FTSE ADX 15 Islamic Index. This collaboration reflects our commitment to delivering inclusive investment solutions that meet diverse investor needs worldwide. The new Islamic Index demonstrates our dedication to excellence and our adaptability to the evolving financial landscape.” The FTSE ADX 15 Islamic Index is designed to offer a comprehensive Shariah-compliant option for global Islamic investors, with screening provided by IdealRatings, a respected Shariah screening provider. Based on constituents of the FTSE ADX General Index listed on ADX’s Main Market, the index leverages IdealRatings’ impartial research to ensure neutrality and adherence to current practices. The selection process ensures investability, capping the largest company’s weight at 33 percent, with any remaining company weight not exceeding 18 percent. Transparency and liquidity are central to FADX15. The index methodologies are openly available on the FTSE Russell website, and the index is designed for tradeability, supporting the creation of ETFs, index funds, and acting as a benchmark for institutional investors. Additionally, real-time and end-of-day Capital and Total Return Indices are available for investors, catering to the diverse needs of market participants.