The S&P GCC Shariah Investable index is part of the family of S&P Global Shariah Investable index series. The index series is designed to offer investors a set of regional and country investable indices that are compliant with the Islamic canonical law. The S&P GCC Shariah Investable index is based on its parent index, the S&P/IFCI GCC, providing investors a comparable investable 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/IFCI GCC is a subset of the S&P/IFCI (Investable) indices which represent the investable subset of the S&P/IFCG (Global) indices. The S&P/IFCI indices measures the returns of emerging market stocks that are legally and practically available to foreign investors. As a 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 (Investable) GCC
- Market Coverage –Bahrain, Kuwait, Oman, Qatar, 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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