Lunate launches its first sharia-compliant, dividend-paying ETF

Lunate, the Abu Dhabi-based investment manager, said its first GCC sharia-compliant, dividend-paying exchange-traded fund is due to list on the Abu Dhabi Securities Exchange on June 23.

The ETF will track the Solactive GCC shariah dividend index, which comprises dividend-paying, sharia-compliant equities from across the Gulf Cooperation Council.

The index includes companies from the UAE, Saudi Arabia and Qatar, spanning high-growth sectors such as materials, telecommunications, energy and industrials, Lunate said in a statement.

The ETF aims to distribute dividends semi-annually.

“This is the first sharia-compliant ETF globally to offer investors access to multiple GCC markets in a single dividend-paying product,” Sherif Salem, partner and head of public markets at Lunate, said.

The ETF listing is Lunate’s 20th on the ADX and 22nd across the UAE, he added.

ADX Group CEO Abdulla Salem Alnuaimi said the listing supports the exchange’s growing ETF trade and that activity more than tripled in value year on year to AED155 million ($42 million) in the first quarter of 2026 as investors seek diversified exposure to indexes and themes.

Lunate Capital will manage the ETF, while the Bank of New York Mellon will serve as the global custodian. The Solactive GCC shariah dividend index is maintained by Solactive AG, a Germany-based financial index provider.

Further reading:

• Lunate targets doubling of assets under new leadership
• Lunate in talks to invest $1bn in AI specialist MGX
• Abu Dhabi and Hong Kong bourses to promote dual listings

Last month, Lunate backed a JD50 million ($70 million) investment fund to support startups in Jordan.

Lunate is majority-owned by Chimera Investment, overseen by Sheikh Tahnoon bin Zayed Al Nahyan, the UAE’s national security-adviser and brother of the UAE president, Sheikh Mohammed bin Zayed Al Nahyan.

It manages $110 billion in assets across private markets, including buyouts, growth equity, early and late-stage venture capital and private credit.