The Saudi Exchange on Sunday launched the TASI Islamic Index, its first Shariah-compliant Index.
The newly launched Index will track the performance of the Shariah-compliant companies listed on the exchange under the supervision of an independent Shariah advisory committee, SPA reported.
The Index will act as a tool for investors and wider market participants to guide and inform decisions into Shariah-compliant investments, while allowing asset managers to benchmark the performance of their Shariah-compliant investment portfolios.
The Index can also serve as a base for financial products including derivatives and exchange traded funds (ETFs).
The introduction of the TASI Islamic Index followed the launch of single stock futures (SSFs) contracts – its second derivatives product – by the Saudi Exchange on July 4 this year.
The SSFs contracts – standard futures contracts with an individual stock as its underlying asset – enable local and international investors to hedge and manage portfolio risks more effectively as well as diversify products available for trading in the market.
The Saudi Exchange, the 9th largest stock market among the 67 members of the World Federation of Exchanges and the dominant market in the GCC region, launched the derivatives market in 2020 and since then has been introducing new derivative products from time to time.
The Saudi Exchange is a fully owned subsidiary of Saudi Tadawul Group.
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