February 05, 2020

FTSE Russell selected by Abu Dhabi Securities Exchange (ADX) as benchmark administrator for tailored domestic indexes

  • Full index partnership brings ADX’s clients the benefits of an independent, global index provider 
  • FTSE Russell and ADX to introduce new ESG and Shariah compliant indexes 
  • ADX indexes to transition to FTSE Russell’s transparent, rules-based objective index methodology

FTSE Russell, the global index, data and analytics provider has agreed a full index partnership with Abu Dhabi Securities Exchange (ADX) to become its benchmark administrator for domestic equity indexes in Abu Dhabi. The signing ceremony took place this morning at ADX in the presence of H.E. Khalifa Al Mansouri, Chief Executive of ADX, and Mr. Waqas Samad, CEO of FTSE Russell.

Under the terms of the agreement, FTSE Russell will begin providing daily index calculations on the General Index which includes all companies listed on ADX and nine sector specific indexes (Banks, Consumer Staples, Energy, Financial Services, Industrials, Insurance, Real Estate, Services and Telecommunications) A new series of sustainable finance indexes and Shariah compliant indexes are also planned, demonstrating a commitment to continued investment and innovation.

The indexes will transition to FTSE Russell’s index methodology, with index names to be co-branded. ADX’s indexes cover over 66 listed companies listed with a total market capitalisation of approximately $145 billion at the end of 2019. Indexes are used by financial institutions and asset owners for a variety of purposes including to benchmark performance, inform product development, conduct market research and analysis and to underpin exchange traded funds (ETFs).

FTSE Russell classifies UAE as a ‘Secondary Emerging’ market within its Global Equity Index Series (GEIS). UAE listed companies currently account for 0.93% of the FTSE Emerging Index, a widely used global benchmark.

Waqas Samad, Group Director, Information Services, LSEG and CEO FTSE Russell said: 
“We are delighted to collaborate with ADX and bring our expertise as a leading global index provider to what is a vibrant and growing capital markets ecosystem in the UAE. The agreement demonstrates FTSE Russell’s commitment to working together with market participants across the Middle East region. We look forward to working closely with ADX and index users to launch a range of new benchmarks in the coming months.”

H.E. Khalifa Salem Al Mansouri. Chief Executive of ADX said: 
“The agreement signed today with FTSE Russell is of special significance for ADX. We are honoured to benefit from FTSE reputation and expertise as a leading global index provider to develop our new indexes and the announcement coincides with the first steps and implementation phases of “Dynamic 20/20” which is the starting point of our ADX One business development strategy. The new indexes will enhance our market attractiveness to foreign investors and improve the global competitiveness of our trading environment”.

For further information:

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Oliver Mann/ Lucie Holloway
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About FTSE Russell

FTSE Russell is a global index leader that provides innovative benchmarking, analytics and data solutions for investors worldwide. FTSE Russell calculates thousands of indexes that measure and benchmark markets and asset classes in more than 70 countries, covering 98% of the investable market globally. 

FTSE Russell index expertise and products are used extensively by institutional and retail investors globally. Approximately $16 trillion is currently benchmarked to FTSE Russell indexes. For over 30 years, leading asset owners, asset managers, ETF providers and investment banks have chosen FTSE Russell indexes to benchmark their investment performance and create ETFs, structured products and index-based derivatives. 

A core set of universal principles guides FTSE Russell index design and management: a transparent rules-based methodology is informed by independent committees of leading market participants. FTSE Russell is focused on applying the highest industry standards in index design and governance and embraces the IOSCO Principles. FTSE Russell is also focused on index innovation and customer partnerships as it seeks to enhance the breadth, depth and reach of its offering. 

FTSE Russell is wholly owned by London Stock Exchange Group. 

For more information, visit www.ftserussell.com.

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