The S&P GCC Shariah index is part of the family of S&P Global Shariah Benchmark index series. The index series is designed to offer investors a set of benchmark indices that are compliant with the Islamic canonical law. The S&P GCC Shariah index is based on its parent index, the S&P/IFCG GCC, providing investors a comparable portfolio while adopting explicit investment criteria defined by the law. The parent index undergoes screenings of the stocks by an outside research group, Ratings Intelligence Partners (RI), to interpret Shariah board rulings.
The Gulf Cooperation Council (GCC) is an organization of six Arab states who share many social and economic objectives. These states are Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab Emirate.
The S&P/IFCG GCC is a subset of the S&P/IFCG (Global) indices which represent the performance of the most active stocks in the emerging markets. As a core member of the S&P Emerging Market indices, it is constructed from equities included in the Emerging Markets Database (EMDB).
Index constituents exhibit the following characteristics:
- Underlying Indices – S&P/IFCI (Global) GCC
- Market Coverage – Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and UAE
- Weighting – Modified capitalization weighting
- Reconstitution – As needed basis
Index Governance and Policy
The parent index is maintained by S&P Index Committees, whose members include Standard & Poor’s economists and index analysts. Working with the Shariah Supervisory Board and Ratings Intelligence Partners, the Shariah indices follow a set of published guidelines and policies that define the transparent methodologies used to maintain the indices.
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