Dow Jones Indexes has licensed the Dow Jones GCC Titans 50 Total Return Index with Saudi Local UAE Index (Dow Jones GCC Titans 50), the index authorized by Tadawul to include Saudi Arabian stocks, to National Bank of Abu Dhabi (NBAD).
Reportedly, the index will serve as the basis for an exchange-traded fund (ETF), to be listed at the Abu Dhabi Securities Exchange. Dow Jones Indexes has said that this ETF based on the GCC blue-chip index will be available to market participants in the UAE market.
According to the Dow Jones Indexes, the Dow Jones GCC Titans 50 measures the performance of 50 leading component stocks traded in the six Gulf Cooperation Council (GCC) member states: Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and United Arab Emirates.
Michael Petronella, president of Dow Jones Indexes, said: “Offering the Dow Jones GCC Titans 50 presents market participants for the first time access to an authorized regional blue-chip index that includes the widely sought after Saudi Arabian stock market. As part of the Titans index family, this index represents the biggest and most liquid blue-chip stocks for the GCC region and facilitates investor participation in an important world market.”
Alan Durrant, chief investment officer, asset management group, National Bank of Abu Dhabi, said: “National Bank of Abu Dhabi has a proud history of being at the forefront of innovation. As the UAE’s leading bank, we are well placed to understand the changing needs of investors and the investment tools that will meet those needs. The ETF market place has demonstrated enormous growth in recent years and we believe that this will continue. We believe that an ETF that provides timely, cost effective access to a broad GCC portfolio will prove very popular with local investors. In addition, it is clear that international interest in the Gulf is growing and an ETF can provide a way for global institutions to invest in our region.”
