Dow Jones Indexes, a leading global index
provider, today announced that it licensed the Dow Jones GCC Titans 50 Total
Return Index with Saudi Local UAE Index (Dow Jones GCC Titans 50), the first
index authorized by Tadawul to include Saudi Arabian stocks, to National
Bank of Abu Dhabi (NBAD). The index will serve as the basis for an
exchange-traded fund (ETF), to be listed at the Abu Dhabi Securities
Exchange. This ETF based on the GCC blue-chip index will be the first one
available to market participants in the United Arab Emirates (UAE) market.
NBAD intends to launch the ETF soon, pending regulatory approval.
The Dow Jones GCC Titans 50 measures the performance of 50 leading component
stocks traded in the six Gulf Cooperation Council (GCC) member states:
Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and United Arab Emirates.
"The Gulf region is one of the world's fastest growing and most sought after
markets. Offering the Dow Jones GCC Titans 50 presents market participants
for the first time access to an authorized regional blue-chip index that
includes the widely sought after Saudi Arabian stock market," said Michael
A. Petronella, president, Dow Jones Indexes. "As part of the Titans index
family, this index represents the biggest and most liquid blue-chip stocks
for the GCC region and facilitates investor participation in an important
Alan Durrant, chief investment officer, Asset Management Group, National
Bank of Abu Dhabi, said "National Bank of Abu Dhabi has a proud history of
being at the forefront of innovation. As the UAE's leading bank, we are well
placed to understand the changing needs of investors and the investment
tools that will meet those needs. The ETF market place has demonstrated
enormous growth in recent years and we believe that this will continue. We
believe that an ETF that provides timely, cost effective access to a broad
GCC portfolio will prove very popular with local investors. In addition, it
is clear that international interest in the Gulf is growing and an ETF can
provide a way for global institutions to invest in our region.
To be eligible for the Dow Jones GCC Titans 50 a stock must have an average
daily trading volume of at least US$500,000. The three largest companies of
each of the six GCC member states are included in the index. The remaining
32 components are selected top-down from the index universe.
The Dow Jones GCC Titans 50 is weighted by float-adjusted market
capitalization. Back-tested estimated daily index history is available
December 31, 2003.[i] The Dow Jones GCC Titans 50 is reviewed annually in
June and calculated in U.S. dollar.
As of October 12, 2009, the top ten components of the Dow Jones GCC Titans
50 are Al Rajhi Bank (Saudi Arabia), Saudi Basic Industries Corp. (Saudi
Arabia), Mobile Telecommunications Co. (Kuwait), Emirates Telecommunications
(UAE); National Bank of Kuwait (Kuwait), Saudi Telecom Co. (Saudi Arabia),
First Gulf Bank (UAE), Samba Financial Group (Saudi Arabia), Kuwait Finance
House (Kuwait), Saudi British Bank (Saudi Arabia).
The index further complement the existing range of Dow Jones and Dow Jones
Islamic Market indexes for the GCC and MENA regions which are the Dow Jones
GCC ex-Saudi Index, the Dow Jones GCC, Dow Jones GCC Titans 40 Index, the
Dow Jones Arabia Titans 50 Index, the Dow Jones UAE Select Index, the Dow
Jones Bahrain Index, the Dow Jones Kuwait Composite, the Dow Jones Kuwait
Titans 30 Index, the Dow Jones MSM Index, the Dow Jones ASE 100 Index, the
Dow Jones EGX Egypt Titans 20 Index, the Dow Jones Total Stock Market
Indexes for Bahrain, Egypt, Jordan, Kuwait, Morocco, Oman, Qatar and UAE,
the Dow Jones FEAS Composite Index, the Dow Jones SAFE 100 Index; the Dow
Jones Islamic Market GCC, Dow Jones Islamic Market GCC ex-Saudi Index, the
Dow Jones Islamic Market MENA, the Dow Jones Islamic Market Kuwait, the Dow
Jones DFM Index and the Dow Jones DFM Titans 10 Index.
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