Egypt's stock exchange (EGX) plans to launch an index that complies with Islamic law, or shariah, between October and November, in collaboration with the S&P, local press reported on Sunday. The initial shares that correspond to the Islamic index range between 20 and 25, said EGX chairman Ramy El-Dokany, explaining that the exact volume of the shares to be added to the index has not yet been determined. The new index is expected to allure new investors, boost the volume of investments in the stock exchange, and provide sources of income for foreign currency through various investment mechanisms, El-Dokany added. Shariah-compliant financial systems create a suitable alternative for the traditional trading of stocks, as Islamic indices target people wishing to invest in accordance with the guidelines of the Islamic economy. These indices reflect the performance of shares subject to Islamic shariah in their business model in each market.
