A.SREENIVASA REDDY (ABU DHABI)
Lunate, the sole UAE-based manager of exchange traded funds (ETFs), is managing Dh1.03 billion in ETF assets under management as investor adoption of passive and exchange-listed investment products continues to expand in the UAE.
Speaking to Aletihad in an interview on the occasion of launching a new ETF tracking Shariah-compliant and dividend-paying companies across the UAE, Saudi Arabia and Qatar, Sherif Salem, Partner and Head of Public Markets at Lunate, said: “Our ETF platform has continued to scale alongside the development of UAE capital markets.”
“With the latest launch, we now have more than 22 ETF listings across UAE exchanges, and 25 in total, reflecting the breadth of our product offering and increasing investor adoption,” Salem said.
“With this ETF, we will have 12 listed Shariah ETFs, making Lunate the global leader in the most expansive Shariah ETF offering,” the Lunate official said.
The new ETF, named Chimera Solactive GCC Shariah Dividend ETF, tracks the Solactive GCC Shariah Dividend Index, which has a mix of 20 companies in the region.
The subscription period for the ETF runs from June 8 to June 16, 2026. The offering price is set at Dh3.71 per unit, comprising Dh3.67 plus Dh0.04 in issuance charges.
The ETF will be listed on ADX on June 23.
Reacting to the timing of the launch, Salem said the current environment is supportive of income-focused strategies.
“In periods of market uncertainty and higher rates, investor demand typically shifts toward defensive, yield-generating exposures,” he said.
The GCC is an attractive proposition “supported by strong fiscal positions, ongoing structural reforms, and resilient growth,” Salem said. The latest ETF provides investors with an opportunity to access income opportunities across the region, rather than relying on single-market exposure, he added.
Salem said the ETF has been deliberately designed as an income-focused product, with semi-annual distributions aligned with the objective of capturing sustainable dividend yield.
“Our intention was to address the clear need for income-oriented solutions in the region,” he said.
Explaining the choice of index, Salem said the Solactive GCC Shariah Dividend Index was selected because it is designed to capture high-quality, sustainable dividend income within a Shariah-compliant framework.
He said the index applies Shariah screening to exclude non-compliant sectors and companies, while also focusing on dividend yield and sustainability. Additional quality and momentum filters are also used.
“As a result, the index is not intended to replicate the broad market, but rather to provide a targeted income-oriented exposure, which may lead to differences in sector or stock representation,” Salem said.
On subscription mechanics, Salem said the distinction in minimum subscription size reflects standard ETF structures globally. The minimum subscription size applies to authorised participants transacting in the primary market, while other investors can access the ETF through the secondary market, where units trade on exchange and can be bought or sold in smaller sizes, including a single unit.
During the initial offer period, retail investors can also subscribe directly, with a minimum investment of Dh5,000, making the product accessible to a broader investor base, Salem said.
“This structure ensures both efficient fund creation/redemption and accessible trading for all investors,” he added.
Lunate has seen strong traction particularly in thematic and income-oriented strategies, which continue to resonate with investors, Salem said.
While the UAE remains Lunate’s primary listing hub, the company has already expanded internationally. Salem said Lunate currently has three thematic ETFs listed on Xetra in Germany, making it the first GCC-based issuer to list ETFs in Europe.
“This reflects our ambition to bring GCC-linked investment strategies to a broader global investor base,” he said.
“We will continue to evaluate further cross-border opportunities in line with investor demand and regulatory frameworks,” Salem added.
On whether Lunate would consider further listings across UAE exchanges, Salem said dual listings can make sense where they provide access to a new and differentiated investor base. However, he said pursuing a dual listing within the same country is generally less compelling.
“Our approach has focused on expanding reach internationally, as reflected in our thematic ETF listings on ADX and Xetra,” he said.
Looking ahead, Salem said Lunate’s product roadmap is driven by investor needs and market development. The company continues to explore new asset classes, additional thematic exposures and further innovation within equity and income strategies.
“At the same time, our focus remains on bringing products to market where we can deliver strong investor outcomes and sustainable liquidity profiles,” Salem said.