Lunate’s Chimera J.P. Morgan Global Sukuk ETF lists on ADX

The Abu Dhabi Securities Exchange (ADX) announced the listing of the Chimera J.P. Morgan Global Sukuk ETF on July 8.

The new exchange-traded fund offers investors access to a diversified portfolio of liquid, USD-denominated, investment-grade sukuks from sovereign, quasi-sovereign, and corporate issuers worldwide, each with a minimum of $500m in face amount outstanding.

Chimera J.P. Morgan Global Sukuk ETF: Details

The Shariah-compliant ETF is designed to track the J.P. Morgan Global IG Sukuk Index, providing exposure to approximately 75 sukuks domestically, regionally, and globally.

“We are proud to welcome the Chimera J.P. Morgan Global Sukuk ETF, the 14th ETF listed on our market,” said Abdulla Salem Alnuaimi, group CEO of ADX. “This latest offering by Lunate not only broadens our portfolio of financial products but also underscores Abu Dhabi’s strategic vision as a leading centre for capital formation and investment hub. This is the second ETF on ADX that tracks debt instruments, providing investors with direct and easy access to such financial assets.

“By expanding investor access to global sukuks, we support the growth of Islamic finance as well as cater to the investors’ appetite for ethical, asset-backed investment solutions. The new ETF adds to ADX’s growing and comprehensive options for investors to efficiently diversify and strengthen their investment strategies.”

Sherif Salem, partner and head of Public Markets at Lunate, commented on the listing: “The ETF offers investors access to a diversified portfolio of Shariah-compliant corporate and government sukuks across several global markets, enabling investors to access attractive opportunities while aligning their investments with ethical considerations.

“This addition enhances our range of ETFs currently listed on UAE stock markets and reinforces our commitment to strengthening the nation’s financial markets.”

ADX see strong demand for ETFs

ADX has seen a strong surge in demand for ETFs, solidifying its position as the most active and liquid ETF marketplace in the MENA region.

Reflecting its dynamic growth, ADX recently welcomed the Chimera S&P Japan UCITS ETF, the first ETF tracking Japanese equities on the exchange, providing investors with direct access to the Japanese market.

In 2023, ETFs trading values on ADX exceeded Dhs5bn, a 160 per cent increase from the previous year, with total ETF trading volumes reaching one billion units, representing 205 per cent year-over-year growth.

The introduction of the Chimera J.P. Morgan Global Sukuk ETF enhances the suite of diverse financial products available to investors on ADX, aligning with its commitment to innovation and diversification.

In other news, Lunate received initial authorisation from the Ministry of Human Resources and Emiratisation (MoHRE) and the Securities & Commodities Authority (SCA) to become the first Abu Dhabi-based fund manager and Administrator of the UAE’s voluntary alternative end-of-service benefits (EoSB) scheme through the newly licensed Lunate EoSB Fund.

Read: Lunate receives MoHRE, SCA initial nod to offer EoSB investment offerings