Dow Jones Launches Index Tracking United Arab Emirates Securities

The Dow Jones UAE 25 Index has been licensed to National Bank of Abu Dhabi (NBAD) and will underlie the first exchange-traded fund (ETF) in the UAE, according to the announcement. The NBAD OneShare Dow Jones UAE 25 ETF is expected to be listed at the Abu Dhabi Stock Exchange at the end of March.      

The selection universe of the Dow Jones UAE 25 Index consists of equity securities traded on the stock exchanges of the UAE, excluding foreign-listed stocks. Represented exchanges are the Dubai Financial Market, Abu Dhabi Securities Exchange, and Nasdaq Dubai.       

To be eligible for the index, securities must have a minimum average daily trading volume of US$500,000. Stocks in the index universe are ranked by free-float market capitalization and then by 12-month average daily domestic currency trading volume.      

The index is weighted by free-float market capitalization. The weights of the individual components are capped to 8% of the index. Components with weights of 5% or more are restricted in aggregate to 40% of the index.      

The Dow Jones UAE 25 Index is reviewed on an annual basis using data from the last trading day in February.