The Gulf listed exchange-traded fund industry has taken it one step further this week with the launch of its first vehicle to invest in neighboring country equities.
Chimera Capital has listed the Chimera S & P KSA Shariah Exchange Traded Fund in Abu Dhabi. This product will allow UAE traders to track Saudi Arabia stocks via the local stock exchange. This is the first emerging ETF market in the Gulf countries.
This fund tracks S & P Saudi Arabia’s Shari Liquid Top 30 35/20 Capped Index. This has risen 44% over the past year. Gauge tracks the largest and most liquid Shariah compliant stocks in the top 30 listed in Saudi Arabia.
“The next obvious market was Saudi Arabia, which is the largest market in the region,” Sheriff Salem, chief investment officer of the company’s public market, said in an interview.
By the weekend, the fund had assets under management of 70 million dirhams ($ 19 million), he said.
Gulf investors can choose from eight different equity-focused ETFs in the region: three in Saudi Arabia, two in Qatar, three in the United Arab Emirates. United Arab Emirates exchanges are stepping up their efforts to diversify their commodity offerings and facilitate trading activities.
https://gulfbusiness.com/fund-in-abu-dhabi-tracking-saudi-shares-is-a-first-for-gulf-etfs/ Abu Dhabi’s fund to track Saudi Arabia’s stock is the first of the Gulf ETFs