FTSE Group (FTSE), the award winning global index provider, today confirms the addition of the United Arab Emirates (UAE) as a secondary emerging market within its Global Equity Index Series. This is the first time the UAE has been included in a global equity universe.
The UAE’s inclusion in the Global Equity Index Series was initially announced in the FTSE 2009 Annual Country Classification Review. Changes to the UAE’s classification will be implemented after the markets close on Friday, 17 September, and take effect at the start of trading on Monday, 20 September.
The implementation recognises the success of the UAE’s ongoing efforts to meet international investor standards. Its inclusion in a global portfolio index tracking series such as FTSE’s range of emerging market indices gives the UAE greater international visibility amongst global investors and is an important step for generating international portfolio investments.
The FTSE Country Classification Review, announced annually in September, provides investors with a guide to the investability of global markets including; Developed, Emerging and Frontier markets. The classification influences investment decisions and can have a significant impact on the markets of the countries assessed.
The Securities and Commodities Authority for the UAE has made the following statement regarding FTSE’s classification, “The Securities and Commodities Authority (SCA) is committed to continuous development of the regulatory and market infrastructure. We are satisfied to co-operate with an established index provider such as FTSE in accordance with its internationally recognised Country Classification criteria. As such, the SCA is pleased to see FTSE’s recognition of the UAE as a Secondary Emerging market within the FTSE Global Equity Index Series. This decision is long awaited and should boost confidence in both domestic and international investors, as the UAE market continues to evolve and attract international attention.”
Jonathan Cooper, Managing Director FTSE Middle East and Africa, said “Today’s announcement is the result of close and successful dialogue between FTSE and key market participants in the UAE. The announcement highlights structural improvements made to UAE financial markets and is an important step for the market’s global recognition. FTSE looks forward to continuing its work both in the UAE and wider Gulf Cooperation Council (GCC) in order to provide both domestic and global investors with a range of robust indices suitable for adoption as
performance benchmarks or tradable solutions.”
