The MSCI Global Islamic Indices reflect Sharia investment principles to provide an innovative and relevant opportunity set for Islamic investors. An independent Sharia Board, the advisory board of Dar al Istithmar, has granted a Fatwa on the MSCI Islamic Index Series Methodology, concluding that the methodology is in compliance with generally accepted Sharia guidelines. The Sharia Supervisory Committee of Dar al Istithmar comprises some of the most widely respected and distinguished scholars from the world of Islamic Finance.
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Stringent Screens for Business Activities and Financial Ratios: The MSCI Islamic Index Series Methodology includes stringent screens of business activities and financial ratios based on total assets. Using total assets rather than market capitalization for the three financial ratio screens results in lower index volatility and lower index turnover, as market capitalization can be more volatile than total assets.
Incorporates Dividend Purification: In addition, the application of a dividend adjustment factor in the creation of the MSCI Global Islamic Indices results in more relevant benchmarks, as they reflect the total return to an Islamic portfolio net of dividend purification.
Broad Country Coverage: The MSCI Global Islamic Indices are constructed from the conventional MSCI country indices and cover 69 developed, emerging and frontier markets, including regions such as the Gulf Cooperation Council (GCC) countries and Arabian markets. A complete list of eligible countries for the MSCI Global Islamic Indices may be found here.
MSCI Global Islamic Indices enable you to:
- Use a relevant benchmark that reflect Sharia investment principles
- Obtain insights for stock screening related to Sharia investment principles
- Help evaluate, select and monitor managers and their performance
- Provide effective research and asset allocation tools
- Construct and issue index-linked products such as listed and OTC derivatives, ETFs, and institutional and retail funds.
MSCI Global Islamic Indices
| Country and Size Coverage | Number of Countries | Large | Mid | Small |
|---|---|---|---|---|
| Developed Markets | 23 | Yes | Yes | No |
| Emerging Markets | 23 | Yes | Yes | Yes |
| GCC Countries | 6 | Yes | Yes | Yes |
| Frontier Markets ex-GCC Countries | 17 | Yes | Yes | No |
| Total | 69 | |||
| As of November 26, 2008 | ||||
To find out more about the MSCI Global Islamic Indices, download the MSCI Global Islamic Index Summary and product fact sheet or contact us.
