The first member of the Falcon Family of Indices

United Arab Emirates, 6th September 2006 - Al Mal Capital PSC, the UAE investment company, today introduced the Al Mal UAE Falcon Index (Following All Liquid COmpany Names), a unique benchmark designed to provide a real time, liquid and tradable representation of performance of the UAE equity markets. 

The Al Mal UAE Falcon Index, due to its characteristics as a tradable basket, will be used as a practical benchmark for investors in the UAE, as well as international investors from the GCC, Europe, Asia and North America.

In the near future, Al Mal Capital plans to launch the Al Mal UAE FALCON Fund (Fund of All Liquid COmpany Names), an Exchange Traded Fund (ETF) based on the UAE Falcon Index, proposed for listing on the Dubai Financial Market (DFM) and on international exchanges.

Al Mal Capital intends to follow the UAE Falcon Index with broader regional index coverage, making use of the same criteria and methodology, but tailored to the dynamics of each market, including a GCC Falcon Index and a MENA/Arab Falcon Index. 

Al Mal FALCONs, exchange traded funds based on the Falcon family of indices, will follow the launch of each new index.

"There is a huge pent-up demand, both locally and internationally, for this type of product", indicated Naser Nabulsi, Executive Chairman of Al Mal Capital.  "We have assembled a group at Al Mal with many years of experience to manage the Falcon indices and ETFs, and we expect it to be well received by the market, as it is the first offering of its kind."   We will continue to deliver Al Mal Capital's vision and utilise the global experience of our team to deliver local solutions" he said.

"This is the first home grown index built along international standards and will play a vital part in the evolution of our markets. International ETF's have played a major factor in allowing investors to easily participate in global markets and we expect Al Mal FALCONs to do the same for our markets" added Maan Tabaqchali.

Al Mal Capital is a leading Dubai-based Investment Company, licensed and regulated by the UAE Central Bank, with paid-up capital of Dh. 333 million.  The Company provides its prestigious list of clients with Investment Banking, Brokerage and Asset Management services.

Index Characteristics

The Al Mal UAE Falcon Index accounts for the special characteristics of the UAE equity markets: a significant portion of market liquidity and trade linked to a series of companies with large market capitalization, contrasted with closely-held positions in some companies of size, rendering them difficult to trade.

Initially the index will contain 20 members from both the ADSM and DFM that account for over 94% of 100 day average traded value on both exchanges and for over 64% of combined market capitalisation as of 6th Sep 06. The UAE Falcon Index started with a base value of 2,000 on September 7th 2006.

The initial index members are:-

Company

 

 

Aabar Petroleum

Dubai Islamic Bank

AD Commercial Bank

EMAAR Properties

AD Islamic Bank

Etisalat

Aldar Properties

First Gulf Bank

Amlak Finance

Islamic Arabic Insurance

Arabtec Holding

Oasis Leasing

Aramex

RAK Properties

Dana Gas

Sorouh Real Estate

DU

Tabreed

Dubai Investments

TAQA

The weightings are based on (1) Average traded value; (2) market capitalisation; and (3) length of time that a company has been listed.  Individual company weightings are capped at 25% and sectors are capped at 35%. The next rebalance of the index will take place on January 1st, 2007, with quarterly rebalances.

-Ends-

Issued on behalf of Al Mal Capital by tamra C2

For further press information please contact
Khalil Majdalawi
Tel. (971) 4 2951177
Fax: (9714) 2951188.
E-mail: khalil@tamra-c2.com 

© Press Release 2006