UAE Positioned As Leading Hub For Islamic Finance Growth, According To FTSE Russell CEO

The UAE is emerging as a leader in financial innovation and Islamic finance within the Middle East. Fiona Bassett, CEO of FTSE Russell, part of the London Stock Exchange Group, emphasised this during the launch of the FTSE ADX 15 Islamic Index (FADXI15). "We're seeing growing investor interest, both domestic and international, driven by the region's expansion. This reflects the growing importance of the UAE on the global stage," she stated.

The Islamic finance sector has witnessed significant growth globally. According to the Islamic Finance Development Report 2023, assets in this industry increased by 11% in 2022, reaching US$4.5 trillion. Islamic banking accounts for 72% of these assets. Since 2012, there has been a 163% rise in this sector, with projections suggesting it could expand to $6.7 trillion by 2027.

Bassett highlighted that the new index offers targeted exposure to Abu Dhabi's top 15 Shari'ah-compliant companies. "This latest launch provides focused exposures, to the top 15 Shari'ah-compliant companies, within Abu Dhabi," she added. The initiative aims to cater to increasing demands in Islamic finance by equipping investors with necessary tools.

The partnership between FTSE Russell and Abu Dhabi Securities Exchange (ADX) is pivotal for market expansion. Bassett noted that their collaboration aims to introduce attractive products to the market. "Our partnership with ADX is central to FTSE Russell's strategy," she mentioned. This alliance underscores their commitment to being a leading index partner in the region.

FTSE Russell is focused on offering a wide range of equity and fixed-income solutions in the Middle East. The increased liquidity and market capitalisation have resulted in more UAE companies being included in global indices, spanning from small-cap to large-cap categories. Bassett expressed optimism about future growth prospects in the region.

This strategic approach aligns with FTSE Russell's goal of enhancing its presence as a key player in regional financial markets. By leveraging partnerships and focusing on innovative solutions, they aim to support sustained growth and development within the UAE's financial landscape.

With inputs from WAM