Abu Dhabi’s Lunate has launched a global sukuk exchange traded fund (ETF) to be listed on Abu Dhabi Securities Exchange (ADX), in response to demand for fixed income investments. 

The Chimera J.P. Morgan Global Sukuk ETF will allow investors access to 70 liquid dollar-denominated sukuk instruments across global markets, Lunate said, and will track the performance of the J.P. Morgan Global Investment Grade Sukuk Index using a sampling strategy. 

Abdulla Salem Alnuaimi, Group CEO of Abu Dhabi Securities Exchange (ADX) said the ETF offers direct access to local, regional, and global fixed income markets, meeting increasing investor demand for stable investment opportunities and reflects growing interest in ETFs as versatile investment tools.

Sherif Salem, partner and head of public markets, Lunate, said the fund is the alternative investment firm’s second fixed income ETF launched this year and the 16th to be launched on UAE stock markets. 

The ETF will be managed by Lunate Capital LLC with authorised participants International Securities, EFG-Hermes, Arqaam Securities, FAB Securities, Daman Securities, and BHM Capital. 

Subscriptions opened Monday and the fund will list on 8thJuly. 

(Writing by Imogen Lillywhite; editing by Daniel Luiz)