Dow Jones Indexes has launched the Dow Jones UAE 25 Index, which measures the performance of the 25 of the largest and most liquid equity securities trading in the United Arab Emirates.
The index has been licensed to National Bank of Abu Dhabi and will underlie the first exchange-traded fund in the UAE.
The NBAD OneShare Dow Jones UAE 25 ETF is expected to be listed at the Abu Dhabi Stock Exchange at the end of March.
"Since the Dow Jones UAE 25 Index combines securities traded on the three local stock exchanges it reflects the broad view of the UAE in a single index," says Michael A. Petronella (pictured), president, Dow Jones Indexes. "The index is a transparent and liquid vehicle that provides passive exposure to this attractive market."
"We are very keen on working in partnership with the best in class and we are delighted to be working with Dow Jones Indexes, a leading global index provider, in providing the index for this new investment fund to meet the ever expanding demands of investors in the region," adds Alan Durrant, chief investment officer, asset management group, National Bank of Abu Dhabi. "
The selection universe of the Dow Jones UAE 25 Index consists of equity securities traded on the stock exchanges of the UAE, excluding foreign-listed stocks. Represented exchanges are the Dubai Financial Market, Abu Dhabi Securities Exchange and Nasdaq Dubai. To be eligible for the index, securities must have a minimum average daily trading volume of USD500,000. Stocks in the index universe are ranked by free-float market capitalization and then by 12-month average daily domestic currency trading volume.
As of 26 February, the top five components in the index by free-float market capitalisation are Emirates Telecommunications, First Gulf Bank PJSC, Emaar Properties PJSC, National Bank of Abu Dhabi PJSC and Dubai Islamic Bank PJSC.