Saudi Tadawul Launches TASI Islamic Index

Business

July 18th, 4:32am

Asharq Al-Awsat

This picture taken December 12, 2019 shows a view of the sign showing the logo of Saudi Arabia's Stock Exchange Market (Tadawul) bourse in the capital Riyadh. (Reuters)

The Saudi Stock Exchange (Tadawul) announced on Sunday the launch of its first Shariah Compliant Index, the TASI Islamic Index. This comes in response to growing demand and interest from local and international investors for Shariah-compliant investment tools. The Index tracks the performance of Shariah-compliant companies listed on the Saudi Exchange under the supervision of an independent Shariah Advisory Committee. It will act as a tool for investors and wider market participants to guide and inform decisions when looking into Shariah-compliant investments, while also allowing asset managers to benchmark the performance of their Shariah-compliant portfolios. Mohammed Al Rumaih, CEO of Saudi Exchange, said: "The launch of the TASI Islamic Index complements the Exchange’s ongoing product and indices development efforts to provide best-in-class services and diversified offerings to investors." "The Index will facilitate the launch of new financial products in the market to satisfy the increasing demand for Shariah compliant investment tools." "The introduction of such tools will ultimately boost the Islamic investment sector in the Kingdom. It will also strengthen the Saudi Exchange’s position as the investors’ exchange of choice and an attractive investment destination in line with Vision 2030’s Financial Sector Development Program," Al Rumaih continued. The Saudi Exchange will collaborate with the Shariah Advisory Committee, which consists of representatives from leading financial institutions, will work towards maintaining the highest standards of governance, while ensuring Index constituents abide by the unified Shariah-compliant principles based on clear and transparent criteria. They will also undertake the responsibility of overseeing and approving the list of Shariah-compliant listed companies on a periodic basis. The launch of the Index represents the Saudi Exchange’s ongoing efforts to deliver best-in-class services, diversified offerings, and investment opportunities, ultimately increasing the Saudi capital market’s attractiveness among local and international investors.

from Asharq AL-awsat https://english.aawsat.com/home/article/3764061/saudi-tadawul-launches-tasi-islamic-index