ABU DHABI: The United Arab Emirates has emerged as a formidable hub of financial innovation and Islamic finance in the Middle East, a sentiment echoed by Fiona Bassett, CEO of FTSE Russell, during the launch of the FTSE ADX 15 Islamic Index (FADXI15).
She posited that the UAE’s growing stature on the global financial stage is underscored by an increase in both domestic and international investor interest, spurred by the region’s economic expansion.
The significance of the recent launch lies in its provision of targeted exposure to the top 15 Shari’ah-compliant companies within Abu Dhabi. According to the Islamic Finance Development Report 2023, the global Islamic finance industry has experienced remarkable growth, with assets surging by 11 per cent in 2022, culminating in a total of $4.5 trillion.
Notably, Islamic banking constitutes a substantial 72 per cent of this figure, reflecting a robust sector that has expanded by 163 per cent since 2012, with projections suggesting it will reach $6.7 trillion by 2027.
Burgeoning demand
Bassett’s remarks also highlighted a strategic commitment from FTSE Russell, as their long-term partnership with the Abu Dhabi Securities Exchange (ADX) aims to introduce compelling financial products that meet the increasing demands in Islamic finance.
The collaboration reinforces FTSE Russell’s aspiration to become the preeminent index partner in the region, offering a diverse array of equity and fixed-income solutions.
Abdulla Salem Alnuaimi, the Group CEO of ADX, reiterated this commitment, emphasising that the FTSE ADX 15 Islamic Index reflects an active response to the burgeoning demand for instruments that adhere to Shari’ah compliance.
With AED2.6 trillion in Shari’ah-compliant financial instruments, ADX is strategically positioned to offer innovative products that empower investors to align their choices with ethical values.
