Abu Dhabi is about to get its first ETF tracking the oil-rich emirate’s own world-beating stocks.
(Bloomberg) —
Abu Dhabi is about to get its first ETF tracking the oil-rich emirate’s own world-beating stocks.
Chimera Capital will run the Chimera FTSE ADX 15 ETF, following the 15-biggest listed companies on the Abu Dhabi stock exchange and replicating the FTSE ADX 15 Index.
The FTSE ADX 15 Index is up 7.6% since its inception in March, outperforming developed and emerging markets during that period. The broader benchmark FTSE ADX General Index is up 25% this year in dollar terms, the most among 92 global benchmarks tracked by Bloomberg, aside from those in Turkey and Lebanon. A listings boom and elevated oil prices have buoyed the market, although an 168% surge by International Holding Co. accounts for much of the rally.
The firm is part of a business empire overseen by Sheikh Tahnoon Bin Zayed, the national security adviser to the United Arab Emirates and a brother of the Gulf nation’s president. The ETF is set to include IHC and First Abu Dhabi Bank PJSC — two companies also chaired by Sheikh Tahnoon — along with Emirates Telecommunications Group Co. PJSC and Alpha Dhabi Holding PJSC.
While the Middle East’s exchange-traded funds industry remains in its infancy, Chimera Capital’s new ETF will bring the total developed by the firm to 10. It has funds passively tracking stocks listed in countries including Saudi Arabia and the US.
The initial offer period for Chimera’s latest ETF is planned for Nov. 21 to Nov. 23, at a subscription price of 3.67 dirhams ($1) per unit. The listing is expected on Nov. 24.
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