Moscow Exchange to launch Russia's first Islamic investment index

By Ovunc Kutlu

ANKARA (AA) - The Moscow Exchange announced Thursday that it is planning to launch Russia's first Islamic investment index.

Together with Sberbank, the Exchange said it started calculation of two new indices -- MOEX Shariah Index, with the ticker, MXSHAR, and MOEX Shariah Total Return Index, ticker MXSHARTR.

They are designed to enable Shariah-compliant investors to invest in instruments created under Shariah and principles of financial and other economic activities, according to a statement.

MOEX Shariah Index will be based on the selection of securities of issuers that have passed a verification procedure for compliance with Islamic principles, while issuers will be selected by a Shariah Supervisory Board.

The board will be established by Sberinvest Middle East Limited in the United Arab Emirates, which will ensure that securities will be screened for compliance with Shariah.

"Moscow Exchange's objective is to provide access to the Russian financial market for all categories of investors and provide them with a wide range of investment opportunities," Igor Marich, Executive Board member and Managing Director for Sales and Business Development at Moscow Exchange, said in the statement.

Sberbank Senior Vice President Oleg Ganeev said he is confident that "halal indices" will also be popular with a wide range of investors.