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Prior to shaping the final methodology, the DFM offered market participants the opportunity to counsel on its draft. Image Credit: Bloomberg

The Dubai Financial Market launched a new general index on Monday following a comprehensive transformation of its indices methodology.

The new index provides a series of enhancements for investors, including 10 per cent threshold caps, quarterly rebalancing, independent methodology oversight and index calculation based on actual free-float. The transformation also includes eight sectoral indices as well as the DFM Sharia Index.

Hamed Ali, CEO of DFM and Nasdaq Dubai, said: “This significant milestone underscores DFM’s commitment to constantly develop its services as part of Dubai’s strategy to develop its financial markets. The index transformation caters to the ever-growing demand from various investors’ categories towards DFM’s investment opportunities whether to participate in the thriving IPOs that placed us at the center stage globally or to trade on the market.”

S&P Dow Jones Indices acts as the calculation agent of the indices.

Prior to shaping the final methodology, the DFM offered market participants the opportunity to counsel on its draft during a consultation period between October 3 and 17, 2022.