The Dow Jones Islamic Market (DJIM) Indices were launched
in 1999 in Manama, Bahrain, as the basic standards to represent
Islamic-compliant portfolios. This is for the first time
where by any global index-provider has developed an assessment
tool for Islamic investors. The main idea behind this is
to reduce the study costs of determining and benchmarking
the Islamic investments by creating a global universe of
Shari'ah-screen companies, which in turn approved by the
Shari'ah supervisory board. Dow Jones in this way had attempted
to create an own independent and established Shari'ah supervisory
board that keeps track of the Shari'ah-compliant stock globally,
and constitutes the companies that are accordant with the
rules of Shari'ah law.
This resulted in the credibility
of financial and quality commitment of the companies listed
under the DJIM family index. Currently, these series comprise
more than 70 indices and remain the most widespread family
of Islamic market measures. The solitary angle of these indices globally made the DJIM
as the initial standard of investing in Muslim countries
based on Shari'ah-compliant rules.
The Auditing and Accounting
Organization of Islamic Financial Institutions (AAOIFI)—Standard
21 is been adopted by the DJIM family index to meet the
standards of the Dow Jones Indices. Besides that the Dow
Jones® Citigroup® Sukuk Index is the first index
to measure the performance of global bonds that comply with
Shrai'ah-investment guidelines. The special feature in the
DJIM Index is the Sukuk Index that includes the US dollar-denominated
bonds and specific investment grade, otherwise known as
`Sukuk'. This was the first attempt made by the Shari'ah-compliant
investors to maintain standards against fixed-income investments. |
