EMIRATI_ARABI_DUBAI

New Dow Jones Index will underlie first ETF in United Arab Emirates

Dow Jones UAE 25 Index Licensed to NBAD….

 

Dow Jones Indexes, announced the launch of 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 (UAE).

The Dow Jones UAE 25 Index has been licensed to National Bank of Abu Dhabi (NBAD) and will underlie the first exchange-traded fund (ETF) 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,” said Michael A. Petronella, 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,” said Alan Durrant, chief investment officer, Asset Management Group, National Bank of Abu Dhabi. “National Bank of Abu Dhabi (NBAD) has a proud history of being at the forefront of innovation. As the Number One Bank in the UAE, we are well placed to understand the changing needs of investors and the investment tools that will meet those needs,” he added.

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 US$500,000. 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 February 26, the top five components in the Dow Jones UAE 25 Index by free-float market capitalization are Emirates Telecommunications Corp. First Gulf Bank PJSC, Emaar Properties PJSC, National Bank of Abu Dhabi PJSC and Dubai Islamic Bank PJSC.

The index is weighted by free-float market capitalization. The weights of the individual components are capped to 8% of the index. Components with weights of 5% or more are restricted in aggregate to 40% of the index.

The Dow Jones UAE 25 Index is reviewed on an annual basis using data from the last trading day in February. Changes resulting from the review are implemented after the close of trading on the third Friday in March. Float and shares updates are implemented semiannually, in March and September. Back-tested historical data is available back to December 31, 20051.

Source: ETFWorld – Dow Jones Indexes


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