Thailand launches sharia-compliant index

Thailand is the latest to join the campaign to attract the growing pool of global money looking for sharia-compliant investments. Global index provider FTSE Group and the Stock Exchange of Thailand have expanded the FTSE SET Index Series with the addition of the FTSE SET Shariah Index.

Using the FTSE SET All-Share Index as the base universe, the index is screened by Yasaar Limited, a leading sharia consultancy. Unlike other methodologies, the FTSE SET Shariah Index uses asset-based debt screening, the same that is used for the FTSE Shariah Global Equity Index Series. This is a more conservative approach to sharia compliance. The resulting methodology is less speculative and more in keeping with sharia principles ensuring companies do not qualify for the index simply due to market cap fluctuations.