UAE
UAE Asset Manager to Start ETF Trading in Dubai and Abu Dhabi
(Bloomberg) — The first exchange-traded fund in the United Arab Emirates accessible to investors both in Dubai and Abu Dhabi is expected to list next month.
The Chimera Umbrella Fund — Chimera S&P UAE Shariah ETF will have two different share classes that will track a Shariah-compliant index compiled from stocks listed on the main exchanges in both emirates. It will be managed by Abu Dhabi-based Chimera Capital LLC.
While Gulf investors can chose between five different ETFs in Saudi Arabia and Qatar, two introduced in the UAE have been delisted since 2017. Exchanges in the country are stepping up efforts to diversify their product offerings and boost trading activity as the economy battles to recover from lower oil prices and the impact of the coronavirus.
Read more: Abu Dhabi Bourse to Introduce ETF Next Month, Futures Later
“Once all regulatory approvals are granted, the fund could be listed in the local exchanges in the first half of August,” said Seif Fikry, the chief executive officer of Chimera Capital. It will have an initial size of about 2 million dirhams ($544,000) that is expected to grow post-listing, he said.
Here are more details on the ETF:
- Class-A shares will be listed in the Abu Dhabi Securities Exchange and will reinvest gains into the fund
- Class-B shares will be listed in the Dubai Financial Market and will distribute dividends to investors
- Both will replicate the S&P UAE Domestic Shariah Liquid 35/20 Capped Index, which has members including Emirates Telecommunications Group PJSC (Etisalat), Dubai Islamic Bank PJSC and Emaar Properties PJSC
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