Saudi Arabia’s Tadawul launches TASI Islamic Index

Saudi stock exchange Tadawul has launched its first Shariah-compliant index, the TASI Islamic Index.

The index will track the performance of companies listed as Shariah-compliant on the Saudi exchange, under the supervision of the Shariah Advisory Committee, according to Saudi Arabia’s official news agency SPA.

It will act as a tool for investors and wider market participants to guide and inform decisions when looking into Shariah-compliant investments, while also allowing asset managers to benchmark the performance of their Shariah-compliant portfolios.

Additionally, the index will serve as a basis for financial products, including derivatives and exchange-traded funds.

In collaboration with the Saudi exchange, the Shariah Advisory Committee will work to maintain high standards of governance, while ensuring that index constituents abide by unified Shariah-compliant principles, based on clear and transparent criteria. They will also undertake the responsibility of overseeing and approving the list of companies listed as Shariah-compliant on a periodic basis.

The announcement aligns with the country’s vision to establish a strong foundation for economic prosperity, with Islamic principles and values as a driving force.