FTSE Russell and Abu Dhabi Securities Exchange (ADX) have introduced the FTSE ADX 15 Islamic Index (FADXI15), which aims to bolster ADX’s prominence in the GCC and set a new standard for the expanding market.
This index caters to the growing interest in Shariah-compliant investments, offering a targeted solution for Islamic finance investors within the FTSE ADX Index Series.
The Islamic Finance Development Report 2023 highlights significant growth in the global Islamic finance sector, with assets increasing by 11% in 2022, reaching $4.5 trillion. Islamic banking accounts for 72% of this total. Since 2012, the industry has grown by 163% and is projected to expand to $6.7 trillion by 2027.
“The FTSE ADX 15 Islamic Index, our 16th index, underscores ADX’s commitment to supporting the strong demand for Islamic finance tools,” said Abdulla Salem Alnuaimi, CEO of ADX. “This index offers investors access to a diverse selection of high-performing ADX companies that meet rigorous Shariah compliance standards.”
Fiona Basset, CEO of FTSE Russell, added, “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 index is based on constituents of the FTSE ADX General Index, ensuring neutrality and adherence to current practices. It caps the largest company’s weight at 33%, with others not exceeding 18%.
