Egyptian Exchange launches shariah-compliant index

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The Egyptian Exchange (EGX) has introduced the sharia-complaint index, EGX33.

The index comprises 33 meticulously selected companies whose activities adhere to the principles of Islamic Sharia, according to a press release.

These companies, representing various sectors listed on the EGX, were chosen in accordance with a methodology approved by the Shariah Supervisory Committee, which includes esteemed scholars and experts in Islamic economics and jurisprudence of financial transactions.

Chairman of the EGX Ahmed El-Sheikh underscored the growing demand from local, regional, and international investors for sharia-compliant investment opportunities.

To ensure inclusivity and dynamism, El-Sheikh disclosed that sharia index companies are selected from the EGX100 index companies, alongside those with a sharia supervisory board.

Moreover, the EGX33 index assigns specific weights to each company, with a maximum weight limit of 15% per company, accommodating investment standards and facilitating the development of new financial products such as index funds.

EGX33 is the latest addition to the Egyptian Exchange's portfolio of successful indicators, building on the legacy of the EGX30 Index introduced in 2003.

The new index includes major companies such as Talaat Moustafa Group Holding Company (TMG Holding), Elsewedy Electric Company, Abu Qir Fertilizers, Telecom Egypt, Fawry for Banking Technology and Electronic Payments, and Madinet Masr Housing and Development.