Tag Archives: GCC
Index-Based Investing in Islamic Finance: 2025 Review
The Islamic asset management industry has been experiencing growth in index-based investing, and these trends have accelerated in 2025. As of October 2025, assets under management (AUM) in exchange-traded funds (ETFs) linked to Islamic indices reached USD 7.3 billion, a 44% YTD increase (see Exhibit 1)—outpacing the 30% growth observed in the global ETF market.1…
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Multi-Factor Indices in the GCC Market
The Middle East is a rapidly evolving region and one of its key growth areas has been factor indexing. The increasing adoption of these strategies has been driven by a desire for risk reduction, enhanced returns and cost efficiencies. This trend is evident not only in the adoption of single-factor styles but also in multi-factor…
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S&P DJI’s Global Islamic Equity Benchmarks Rose 6% in H1 2025, Underperforming Conventional Benchmarks
In the first half of 2025, global equities faced significant volatility, primarily driven by developments related to U.S. tariffs. Steep declines between February and April were followed by a swift recovery, and the S&P Global BMI ultimately finished with a solid 10.0% return. U.S. equities underperformed, breaking their streak of extended outperformance, as the S&P…
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Index-Based Investing in Islamic Finance: Trends and Implications
Indices play a crucial role in Islamic finance by identifying the universe of securities eligible for Shariah-compliant investments, establishing the benchmarks by which Islamic market participants assess performance and increasingly serving as the basis for index-linked investment products. Islamic finance has also embraced the global trend toward index-based or “passive” investing,1 with assets in exchange-traded…
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S&P DJI’s Global Islamic Equity Benchmarks Rose 5% in Q3 2024, Underperforming Conventional Benchmarks
Global equities continued to trend higher in the third quarter of 2024, as central banks in many parts of the world moved to ease monetary policy on the back of moderating inflation. The S&P Global BMI rose 7.0% for the quarter and was up 18.1% YTD. Emerging market regions drove the market up, with an…
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S&P DJI’s Global Islamic Equity Benchmarks Rose 13% in H1 2024, Outperforming Conventional Benchmarks
Global equities extended their upward trend into Q2 2024 on the back of sustained economic growth and moderating inflation. The S&P Global BMI posted a healthy 10.4% return in the first half of the year, led by the U.S where the S&P 500® had an impressive run with a 15.3% gain and new record highs….
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S&P DJI’s Global Islamic Equity Benchmarks Rose 9% in the First Quarter, Extending Outperformance against Conventional Benchmarks
Global equities had a strong start to the year as economic resilience and diminishing recession fears boosted risky assets overall. The S&P Global BMI surged 7.8% in the first quarter, led by developed markets; notably, the S&P 500® finished the quarter up 10.6%, at a new record high. Shariah-compliant global benchmarks beat their conventional counterparts,…
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S&P DJI’s Global Islamic Equity Benchmarks Surged Nearly 12% in the Final Quarter, Outperforming Conventional Benchmarks in 2023
Global equities witnessed a strong Q4 2023 as slowing inflation and the potential for lower interest rates improved market sentiment drastically. The S&P Global BMI rallied 11.4% for the quarter, finishing the year with an impressive 21.9% return. Middle East and North Africa (MENA) equities rose 6.4% in Q4, as measured by the S&P Pan…
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Global Islamic Indices Continued Advance in H1 2021, but Lagged Conventional Counterparts
Global equities continued to rise during the second quarter, gaining 7.2% as measured by the S&P Global BMI, raising the YTD tally to 12.8%. Shariah-compliant benchmarks, including the S&P Global BMI Shariah and Dow Jones Islamic Market (DJIM) World Index, somewhat underperformed their conventional counterparts YTD, in part due to continued strength in the Financials…
Global Islamic Indices Advanced in Q1 2021, but Lagged Conventional Counterparts
Global equities continued to rise during Q1 2021, gaining 2.5%, as measured by the S&P Global BMI. Shariah-compliant benchmarks, including the S&P Global BMI Shariah and Dow Jones Islamic Market (DJIM) World Index, underperformed their conventional counterparts in Q1, in part due to the strong performance of the Financials sector, which gained nearly 12% during…