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"Dubai Financial" plans to adopt a new methodology for its indicators during the last quarter of 2022

The new methodology will include various market indicators.

The Dubai Financial Market announced yesterday its intention to adopt a new methodology for its indices during the last quarter of 2022, with S&P Dow Jones Indies as the “index calculating agent”.

The new methodology will include various market indices, including: the general index of the Dubai Financial Market, the Sharia index and sectoral indices, which will provide traders with world-class indicators that are easy to trade and invest according to.

This fundamental development reflects the firm commitment of the Dubai Financial Market to meet the increasing demand from all categories of investors regarding the investment opportunities it provides, through the continuous development of its services in accordance with the best international practices.

The most prominent modifications and expected additions to the index preparation methodology are to reduce the maximum weight of any company included in the index sample to only 10% instead of 20%, which contributes to limiting the impact of a small number of companies on the index, and calculating the index on the basis of the market value of the actual available shares. For free trading, and rebalancing the index on a quarterly basis, instead of a semi-annual review, through an independent specialized committee that oversees the index’s methodology and future adjustments.

The process of developing the index also includes the adoption of market sectors in accordance with the global classification standard for sectors “GICS” followed by international investment institutions, and accordingly, the seven sectors of the Dubai Financial Market will be as follows: financial services, industry, real estate, public utilities, communication services, basic materials, and commodities consumerism.

The Dubai Financial Market called on all dealers to express an opinion on the new methodology for its indicators, by reviewing its main features through its website during the consultation period that ends on October 17, 2022, in preparation for adopting that methodology in its final form and launching the indicators accordingly during the last quarter of the year. 2022.

Hamed Ali, CEO of the Dubai Financial Market and Nasdaq Dubai, said: “This development step reflects the methodology and classifications of market indices in line with international best practices.

Our commitment to continue developing our services within the framework of the strategic plan for the development of financial markets in Dubai.

We are pleased that S&P Dow Jones Indices, the world’s leading index company, has been chosen as the index calculation agent, providing our growing base of local and international dealers with transparent, reliable and supportive indicators of investment activities in the Dubai Financial Market.”

As the index calculating agent, S&P Dow Jones Indices will regularly provide technical support for the interim review process for calculating the general index, sectoral indices and Shariah index based on the index rules.

The agreement between the Dubai Financial Market and S&P Dow Jones Indies also paves the way for the launch of more index-related products in the future.

39.2 thousand new investor accounts

Brokerage companies in the Dubai Financial Market added 39,245 new accounts for investors during the first nine months of this year, amid great momentum in the market since the announcement of the listing of 10 government and semi-governmental companies, including “Dewa”, “Tecom”, “Union Cooperative” and “Union Cooperative” Salik, which contributed to enhancing the attractiveness of the market and attracting new segments of investors.

The number of new accounts in the Dubai Financial Market recorded a significant growth of more than 397.5% during the first nine months of this year, compared to 7,887 new accounts in the first nine months of last year 2021.

According to Dubai Financial Market data, companies added 16,210 new accounts last September, 2,484 new accounts in August, 2,348 accounts in July, 2,850 accounts in June, 2,468 accounts in May, 4,258 accounts in April, 4,401 accounts in March, and 3,231 accounts in February. , and 995 accounts in January.

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