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S&P's GCC Sharia index is launched

January 23, 2014

MANAMA : S&P Dow Jones Indices yesterday announced the launch of the S&P GCC Composite Sharia Dividend Index. It is designed to measure the performance of the highest yielding, Sharia-compliant stocks from the GCC region that meet respective liquidity, dividend growth and dividend sustainability criteria. The S&P GCC Composite Sharia Dividend Index universe is drawn from the S&P GCC Composite Sharia Index which offers investors a comprehensive Sharia-compliant benchmark for the six GCC states. The index is comprised of the 30 highest yielding stocks from the eligible universe, subject to a minimum of two stocks per country. Its constituents are weighted by their indicated annual dividend yield. "Dividend indices have been very popular given the low interest rate environment," said S&P Dow Jones Indices associate director of global equity indices Michael Orzano . "The index was developed based on feedback from Islamic GCC investors who are looking for equity income while remaining Sharia-compliant," he added.

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Source: Gulf Daily News (Bahrain)

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