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Abu Dhabi Securities Exchange launches region’s first Indian exchange traded fund

Abu Dhabi Securities Exchange launches region’s first Indian exchange traded fund
29 Jan 2024 09:44

KHALED AL KHAWALDEH (ABU DHABI)

The Abu Dhabi Securities Exchange (ADX), one of the fastest growing exchanges in the world, welcomed on Friday the listing of the Chimera S&P India Shariah Exchange-Traded Fund (ETF), the first ETF tracking Indian equities to be launched in the region.

Managed by Lunate Capital LLC, the ETF replicates the S&P India Shariah Liquid 35/20 Capped Index, which tracks the 30 largest and most liquid Shariah-compliant Indian companies listed on the Bombay Stock Exchange, including industry leaders like Reliance Industries, Infosys, and Tata Consultancy Services.

“The Chimera S&P India Shariah ETF allows investors in the UAE easy access to some of the largest Shariah-compliant companies listed in India. India presents an exciting investment opportunity; it is a fast-growing economy and home to the fourth-largest stock market in the world,” said Sherif Salem, fund manager and Partner and Head of Public Markets at Abu Dhabi-based Lunate Capital LLC.

“This ETF is also shariah-compliant, which will appeal to a broader range of investors who prioritise adherence to Islamic financial principles,” added Salem. The Chimera S&P India Shariah ETF is the 11th ETF to be listed on the exchange, and follows the launch of Lunate’s launch of the Chimera S&P China HK Shariah ETF, a shariah-compliant ETF tracking Hong Kong-listed Chinese equities in May last year. ADX has become a preferred destination for ETFs with overall trading values exceeding Dh5 billion in 2023, a 160% increase from the previous year. Moreover, total ETF trading volumes reached 1 billion units, representing a 205% increase Year-on-Year. The launch comes as Asia-Pacific funds increasingly turn to investors in the Middle East to raise money.

“The strong market interest of this ETF demonstrates the investors’ support and their vote of confidence in ADX as their investment partner and financial trading platform”, said Abdulla Salem Al Nuaimi, Chief Executive Officer of ADX. “We will continue to broaden ADX’s connectivity to more markets”, he added.
 

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