Du set to broaden investor base with inclusion in MSCI index from September

Emirates Integrated Telecommunication Company, or du, will soon join MSCI indexes, a development that will broaden its reach among global institutional investors. The UAE-based telecom operator will be listed in the MSCI UAE Standard Index, a component of the MSCI Emerging Markets Index, effective from the close of trade on August 31, according to du's statement on Thursday.

The inclusion is based on du's impressive market capitalization, free float, and liquidity, factors that contributed to its eligibility for the MSCI index. This move highlights du's expanding scale, market relevance, and growing shareholder base. The MSCI Emerging Markets Index, which is monitored by global institutional investors with trillions of dollars in assets under management, includes large and mid-cap companies from 24 emerging markets.

The MSCI UAE gauge, a market benchmark for the Arab world's second-largest economy, tracks about 85% of the free float-adjusted market capitalization of UAE-listed equities. With a total market capitalization of approximately $140 billion, the top 10 of its 16 constituents include First Abu Dhabi Bank, e&, Emaar Properties, Emirates NBD, Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Aldar Properties, Adnoc Gas, Dubai Islamic Bank, and Dubai's utilities company, Dewa.

Du expects the inclusion in the index to trigger "material level of passive inflows from index-tracking funds," further bolstering liquidity and long-term investor demand. Fahad Al Hassawi, du's chief executive, described the inclusion as a significant milestone, underscoring the company's increasing importance to international investors.

In July, du reported a 12.6% year-on-year increase in first-half net income to Dh1.63 billion, with revenue for the six months ending June rising 5.8% on an annual basis to Dh8.2 billion.