The brand new ESG benchmark will goal traders trying to commit capital to firms actively selling low carbon exercise within the area.
In accordance with the AFE and Refinitiv, the index launch displays the rising curiosity in sustainable investing within the Mena market whereas additionally giving traders the possibility to spend money on their very own markets versus contemplating different world markets that meet the ESG standards.
By way of weighting by nation, Saudi Arabia holds the most important share at 39.5% adopted by Kuwait (22.3%), the UAE (16.6%), Qatar (13.4%), Egypt (4.5%), and different Mena markets (3.8%).
Rami El-Dokany, Secretary Normal on the AFE, stated that the brand new index will “pave the way in which for the creation of investible merchandise in Mena together with fairness traded funds” and “additionally contribute to draw asset managers and funding into Mena markets”.
“Our goal is to advertise smarter merchandise and corporations from the area in world markets,” he added.
Chair on the AFE and govt chairperson on the Egyptian trade Mohamed Farid Saleh stated that the index may also assist “drive additional integration amongst Arab markets as nicely” as “driving sustainable efficiency for corporates and contributing to the regional financial development trajectory”.
Nadim Najjar, managing director at Refinitiv for the Center East and Africa, stated: “The index will assist us take a look at ESG as an asset class that must be prioritized as a worth and as a follow in Mena markets.
“Investor relations programmes are lagging on this a part of the world, and this new index will additional assist with the combination of Mena markets.”
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