FTSE Russell, the global index, data and analytics provider has agreed a full index partnership with Abu Dhabi Securities Exchange (ADX) to become its benchmark administrator for domestic equity indexes in Abu Dhabi.
The signing ceremony took place this morning at ADX in the presence of H.E. Khalid Bin Shaiban Al Muhairi, Chairman of ADX. The agreement was signed by H.E. Khalifa Al Mansouri, Chief Executive of the Exchange, and Mr. Waqas Samad, CEO of FTSE Russell.
Under the terms of the agreement, FTSE Russell will begin providing daily index calculations on the General Index which includes all companies listed on ADX and nine sector specific indexes (Banks, Consumer Staples, Energy, Financial services, Industrials, Insurance, Real Estate, Services and Telecommunications). A new series of sustainable finance indexes and Shariah compliant indexes are also planned, demonstrating ADX’s commitment to continued investment and innovation.
Commenting the agreement, H.E. Khalifa Salem Al Mansouri Chief Executive of ADX said: “The agreement signed today with FTSE Russell is of special significance for ADX. We are honored to benefit from FTSE Russell’s reputation and expertise as a leading global index provider to develop our new indexes and the announcement coincides with the first steps and implementation phases of “Dynamic 20/20” which is the starting point of our ADX One business development strategy. The new indexes will enhance our market attractiveness to foreign investors and improve the global competitiveness of our trading environment”.
Waqas Samad, Group Director, Information Services, LSEG and CEO FTSE Russell said: “We are delighted to collaborate with ADX and bring our expertise as a leading global index provider to what is a vibrant and growing capital markets ecosystem in the UAE. The agreement demonstrates FTSE Russell’s commitment to working together with market participants across the Middles East region. We look forward to working closely with ADX and index users to launch a range of new benchmarks in the coming months”.
The indexes will transition to FTSE Russell’s index methodology, with index names to be co-branded. ADX’s indexes cover over 66 listed companies listed with a total market capitalization of approximately USD 145 billion by end of 2019. Indexes are used by financial institutions and asset owners for a variety of purposes including to benchmark performance, inform product development, conduct market research and analysis and to underpin exchange traded funds (ETFs).
By providing enhanced ADX offering, the new indices will widen investor audiences and institutions to ADX index family. In parallel, the new ADX indexes to be created by FTSE Russell aim to increase the quality and depth of sustainable investments in the UAE while enhancing the performance of financial markets.
FTSE Russell classifies UAE as a “Secondary Emerging” market within its Global Equity Index Series (GEIS). UAE listed companies currently account for 0.93% of the FTSE Emerging Index, a widely used global benchmark.