ADX Lists Lunate’s Chimera JP Global Sukuk ETF

Abu Dhabi Securities Exchange (ADX), one of the fastest-growing exchanges in the world, has announced the listing of the Chimera JP Global Sukuk ETF, which offers investors access to a diversified portfolio of liquid, USD-denominated, investment-grade Sukuks from sovereign, quasi-sovereign, and corporate issuers globally, with a minimum of $500 million in face amount outstanding.

The Shariah-compliant ETF is designed to track the J.P. Morgan Global IG Sukuk Index and will offer exposure to around 75 Sukuks domestically, regionally, and globally.

ADX Group CEO Abdulla Salem Alnuaimi, while welcoming the Chimera JP Morgan Global Sukuk ETF, he said that it was the 14th ETF listed on ADX so far. 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,” Alnuaimi added.

Sherif Salem, Partner & Head of Public Markets at Lunate, said that the listing of Chimera J.P. Morgan Global Sukuk ETF on the ADX today, demonstrated their commitment to expanding investor access to customized solutions and products, including Shariah-compliant instruments.

Access to Diversified Portfolio

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,” he added.

ADX has experienced a strong surge in demand for ETFs, solidifying its position as the most active and liquid ETF marketplace in the MENA region. Highlighting its dynamic growth, ADX recently welcomed the Chimera S&P Japan UCITS ETF, the first ETF tracking Japanese equities on the exchange, offering investors direct access to the Japanese market.

In 2023, ETFs trading values exceeded AED 5 billion, a 160% increase from the previous year and with total ETF trading volumes reaching 1 billion units (representing 205% y-o-y growth).

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