S&P to be used to calculate NBAD Islamic Index

SHARIAH COMPLIANT: Standard & Poor's to calculate NBAD's Islamic Index. (Getty Images)

National Bank of Abu Dhabi (NBAD) has signed an agreement to assign Standard and Poor's Custom Indices for the calculation and maintenance of the NBAD UAE Listed Islamic Index, WAM reported on Saturday.

The index, which has been running since August 2006, is designed to measure the overall performance of Shariah-compliant securities listed on the Abu Dhabi Securities Exchange (ADX) and Dubai Financial Market (DFM).

Dr Giyas Gokkent, NBAD's Chief Economist said in a statement: "NBAD's Asset Management Group (AMG) has decided to engage an internationally recognised third party firm for the calculation and maintenance of the NBAD UAE Listed Islamic Index to further ensure independence and greater transparency to one of its benchmarks."

To be eligible for inclusion in the index, stocks must have an average daily traded value of more than $100,000 over a three month period from review date.

Constituents of the index are reviewed quarterly and rebalanced in the event of securities becoming no longer compliant.

Price Return Index levels will be calculated daily at approximately 11:00 PM GMT (2:00 am next day UAE time).

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