S&P launches GCC Sharia Index

Standard & Poor’s (S&P) has launched a fully investable GCC Sharia Index. The S&P GCC Sharia Series captures the largest and most liquid stocks across the GCC. S&P says it will pave the way for the creation of mutual funds, ETFs and structured products that will enhance liquidity and improve risk management across the Gulf’s highly concentrated equity markets.

The new indexes – S&P Saudi Sharia, S&P Bahrain Sharia, S&P Kuwait, Sharia, S&P Oman Sharia, S&P Qatar Sharia and S&P United Arab Emirates Sharia – in addition to a S&P GCC Investable Sharia and a S&P GCC Composite Sharia Index - include only those stocks which comply with sharia-law.

This new set of indexes follow the sharia-compliant versions of the S&P 500, the S&P Europe 350 and the S&P Japan 500 indexes, launched in December last year. Greater desire to invest in compliance with sharia