The United Arab Emirates capital markets are experiencing a significant diversification push as regional asset managers cater to the rising demand for sophisticated Shariah-compliant instruments. Abu Dhabi-based alternative investment manager Lunate has announced the upcoming launch of the Chimera Solactive GCC Shariah Dividend ETF (Bloomberg: GCCDIV). Scheduled to list on the Abu Dhabi Securities Exchange (ADX) on June 23, 2026, the fund represents a global first by offering multi-market dividend-paying exposure across the Gulf Cooperation Council within a single Islamic-compliant vehicle.
Multi-Market Capital Allocation in a Single Product
The newly introduced exchange-traded fund is structured to track the performance of the Solactive GCC Shariah Dividend Index. The underlying benchmark targets high-dividend-yielding equities across key Gulf markets, primarily capturing top-tier listed enterprises in the UAE, Saudi Arabia, and Qatar. This configuration provides institutional and retail allocators with localized asset diversification across resilient sectors such as industrial manufacturing, telecommunications, infrastructure materials, and energy.
By spanning multiple regional exchanges, the ETF eliminates the operational complexities typically faced by investors seeking cross-border exposure within the Gulf. The fund will distribute capital earnings to investors via semi-annual dividend payments and carries an annual total expense ratio (TER) of 0.50%, with trading denominated in UAE dirhams (AED). Initial subscription cycles for the fund are scheduled to run through mid-June ahead of its formal trading debut.
Boosting Liquidity in the Abu Dhabi Capital Ecosystem
The listing of the GCCDIV ETF marks Lunate’s 20th fund deployment on the Abu Dhabi Securities Exchange, elevating its total exchange-traded offerings across UAE platforms to 22 vehicles. This aggressive product expansion coincides with a period of massive velocity for the Abu Dhabi exchange’s ETF framework. Operational data indicates that ETF trade volumes on the ADX more than tripled year-on-year, reaching 155 million dirhams in the first quarter of 2026 alone.
Leadership at ADX emphasized that the introduction of specialized income-generating instruments enhances Abu Dhabi’s competitive position as a liquid financial hub. The introduction of balanced, compliance-vetted instruments provides international and regional funds with structured mechanisms to capture the macroeconomic growth of the broader GCC corporate landscape.
Index Mechanics and Governance
To maintain strict alignment with modern Islamic finance frameworks, the index utilizes quantitative compliance screening developed by Solactive AG. The screening framework filters out entities engaged in non-compliant operational sectors or those carrying balance sheets with excessive corporate leverage.
The strategy also employs a 12-month price momentum overlay. This mechanism filters out structurally weak yield profiles, favoring corporate balance sheet discipline and consistent cash-generative capacity over surface-level dividend payouts. Initial portfolio disclosures indicate sample index holdings include regional corporate heavyweights such as Air Arabia, du, Woqod, Industries Qatar, and Yansab.
Lunate Capital LLC is designated as the primary investment manager for the vehicle, while The Bank of New York Mellon will handle international custody requirements. A consortium of regional institutions including International Securities, BHM Capital, EFG Hermes, Arqaam Securities, FAB Securities, Daman Securities, HSBC, and QMM are acting as Authorized Participants to facilitate market-making and liquidity management.
About Lunate
Lunate is an Abu Dhabi-headquartered independent global alternative asset manager regulating over $115 billion in assets under management. Established as a spin-out within the Abu Dhabi financial ecosystem and backed by corporate stakeholders including Chimera Investment, the firm deploys capital through an array of multi-asset solutions, private equity, venture capital, public markets, and credit strategies. Lunate Capital LLC, its specialized investment management subsidiary, focuses on generating structured investment products, including thematic, fixed-income, and equity ETFs, to expand deep market access for regional and global investors.
Source: Zawya
