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

Press release
Published August 17th, 2020 - 07:44 GMT
Abu Dhabi Securities Exchange Lists Exchange-Traded Fund Tracking Shariah-Compliant Products
Abu Dhabi Securities Exchange
Highlights
Abu Dhabi Securities Exchange (ADX) announced today that Chimera Capital LLC’s Exchange Traded Fund (ETF) has listed on the Exchange.

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.”

Background Information

Abu Dhabi Securities Exchange

Abu Dhabi Securities Exchange (ADX) was established on 15th of November 2000 by Local Law No. (3) of 2000, the provisions of which vests the Market with a legal entity of autonomous status, independent finance and management, and gives ADX the necessary supervisory and executive powers to exercise its functions.

Moreover, ADX has the authority to establish centers and branches outside the Emirate of Abu Dhabi, and so far it has done so in Al Ain, Zayed City, Fujairah, Ras Al Khaimah and Sharjah.

ADX's board of directors is comprised of seven members nominated by Amiri Decree. The members of the board hold office for a term of three years. The first board of directors was constituted by Amiri Decree No. (8) of 2000.

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