Egyptian Exchange mulls launch of new Shariah-linked ESG index

The Egyptian Exchange (EGX) is exploring the creation of a new index that integrates Shariah-compliant principles with sustainability standards. The plan, proposed by Chairman Ahmed El-Sheikh, aims to introduce innovative financial tools that cater to evolving market needs, enhance liquidity, and maximise investor returns.

The EGX Shariah Supervisory Committee, during its meeting on Monday, discussed the proposal with enthusiasm. Committee members emphasised the strong alignment between sustainability principles and the core objectives of Sharia, namely preserving religion, life, intellect, lineage, and wealth. They recognised that Environmental, Social, and Governance (ESG) considerations resonate deeply with Islamic investment principles.

Furthermore, the committee reviewed the periodic update of companies included in the EGX33 Shariah Index, with the changes set to become effective on February 1, 2025. The final review results will be announced in the coming days.

Attribution: Amwal Al Ghad English

Subediting: Y.Yasser