Abu Dhabi Securities Exchange Lists Exchange-Traded Fund (ETF) Tracking Shariah-Compliant Products

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Abu Dhabi Securities Exchange Lists Exchange-Traded Fund (ETF) Tracking Shariah-Compliant Products

Abu Dhabi Securities Exchange (ADX) announced today that Chimera Capital LLC’s Exchange Traded Fund (ETF) has listed on the Exchange. The ETF has been designed to replicate the S&P UAE Domestic Shariah Liquid 35/20 Capped Index. The index is provided by S&P and tracks the performance of UAE-based Shariah compliant liquid equities, opening up a new and increasingly demanded asset class to investors seeking exposure to the UAE’s economy.

Chimera S&P UAE Shariah ETF currently has two share classes, including an accumulating Class A listed on the Abu Dhabi Securities Exchange (ADX) which reinvests income back into the fund at no additional expense, and a distributing Class B listed on the Dubai Financial Market (DFM) that distributes to investors any collected dividends. The ETF’s dual share class option provides investors with the added flexibility to choose between regular portfolio returns or maximizing future investment.

H.E. Khaleefa Al Mansouri, Chief Executive of the ADX, said: “ADX once again congratulates Chimera Capital LLC for developing this product, the first exchange-traded fund tracking S&P Shariah-compliant products in the UAE. With a primary listing on ADX, it is a new opportunity for Islamic investors to add variety to their portfolios and manage risk more effectively. Influential investment firms such as Chimera Capital LLC continue to be attracted by the well-regulated status of ADX and the number of companies applying to be listed is undoubtedly on the rise. They will benefit from improved access to capital to fund their strategic ambitions and growth plans under our well-established market and regulatory infrastructure, facilitating the ease of listing of a variety of asset classes.”

The Chairman of Chimera Capital LLC commented: “We are pleased to bring to market the first ETF tracking a Sharia-compliant index in the UAE, which opens a new wholesale investment opportunity to a unique investor profile. The Chimera S&P UAE Shariah ETF will allow investors to capitalize on the prospects of the UAE’s economy.”  The Index is structured and built by S&P and monitored by a Shariah Board that meets regularly to review and rebalance the index quarterly to guarantee that the securities in the index are both liquid and Shariah compliant.  Currently the index has ten securities across the UAE markets, allowing investors a single access point to a balanced portfolio of Shariah compliant liquid UAE securities as per S&P Shariah Board guidelines.

H.E. Khaleefa Al Mansouri concluded: “Abu Dhabi is becoming increasingly successful in attracting a more diverse range of investment firms and investor profiles, supported by the exchange’s growing liquidity, customer focus, increasing foreign ownership limits and robust and transparent regulations. ADX is further maintaining its competitiveness by digitally led investment in its systems and infrastructure to develop a world class capital market, such an important component of Abu Dhabi’s economy.”

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