Lunate, a global investment manager based in Abu Dhabi with over $115 billion under management, has launched the Chimera Solactive GCC Shariah Dividend ETF (ticker: GCCDIV), an exchange-traded fund focused on dividend income that tracks the Solactive GCC Shariah Dividend Index.
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Article created by the editorial staff of ETFWorld.co.uk
Sherif Salem, Partner & Head of Public Markets at Lunate
The ETF, listed on the ADX under the ticker GCCDIV, tracks the Solactive GCC Shariah Dividend Index and offers an indicative dividend yield of 6.2% across a basket of 20 companies from Saudi Arabia, the United Arab Emirates and Qatar.
The ETF was listed on 23 June 2026 on the Abu Dhabi Securities Exchange (ADX). It is the world’s first Shariah-compliant ETF to offer exposure to multiple GCC markets through a single dividend-distributing product.
Structure and operational characteristics
The ETF is structured as an open-ended fund, with the trading currency being the United Arab Emirates dirham (AED) and a total expense ratio (TER) of 0.50%. The initial offer price was set at AED 3.67 per unit, plus an issue fee of AED 0.04. The ISIN is AEC01930C265. Dividends are distributed half-yearly, based on the income received from the underlying companies. The indicative dividend yield of the index is approximately 6.2%.
The initial offering period (IOP) opened on 8 June 2026 and closed on 16 June 2026. Investors were able to subscribe through a network of authorised participants, including International Securities, HSBC, EFG Hermes UAE, FAB Securities, Daman Securities, Arqaam Securities and Q Market Maker (QMM), as well as via receiving entities accessible via the ADX portal, such as First Abu Dhabi Bank, Emirates NBD, Mashreq, Wio Bank, BHM Capital, Al Ramz Capital, Tabadul and Thndr.
The index: methodology and selection
The Solactive GCC Shariah Dividend Index (Bloomberg: SGCCSHDN) is maintained by Solactive AG, an index provider based in Frankfurt, Germany. The index draws on the Solactive GBS investable universe for Qatar, Kuwait, Saudi Arabia and the United Arab Emirates. The basket currently includes companies listed in Saudi Arabia, the United Arab Emirates and Qatar, with the possibility of expansion to other GCC countries in the future.
The methodology involves a Shariah screening based on sectoral and financial criteria, with data provided by IdealRatings. Companies must have a positive dividend per share over the last twelve months and a positive indicated annual dividend. To reduce exposure to potential ‘yield traps’, the methodology excludes the 10 per cent of companies with the worst 12-month momentum, thereby selecting the 20 companies with the highest indicated dividend, whilst applying buffer rules to limit turnover. Weights are determined on the basis of the indicated dividend, with caps linked to free-float market capitalisation: no single constituent may exceed 15% or 30 times its free-float market capitalisation weight within the index universe. The annual rebalancing takes place in May; companies that lose their Shariah eligibility may be removed at any time.
Geographical and sectoral allocation
The current geographical allocation of the basket is: United Arab Emirates 38.5%, Saudi Arabia 35.2%, Qatar 26.3%. Sector exposure covers: Communication Services (21.9%), Materials (21.6%), Industrials (18.4%), Energy (12.6%), Real Estate (10.5%), Financials (9.4%) and Consumer Discretionary (5.6%).
The top ten constituents by weighting include: Air Arabia (11.2%), du (10.7%), Industries Qatar (9.8%), Yanbu National Petrochemicals/YANSAB (8.8%), Jarir Marketing (8.2%), Qatar Fuel/WOQOD (8.0%), Borouge (7.2%), Barwa Real Estate (4.9%), Sharjah Islamic Bank (4.8%) and Dana Gas (4.6%). The portfolio covers sectors such as aviation, telecommunications, petrochemicals, retail, energy, property and banking.
Market context and strategic positioning
The launch comes at a time when investors are seeking equity strategies that combine dividend income with regional diversification. GCC equity markets offer access to a broad range of economic drivers, ranging from energy to trade, infrastructure to financial services and domestic consumption. The region continues to benefit from economic diversification initiatives, sovereign investment programmes and favourable demographic trends. For income-oriented investors, the combination of dividend exposure with a diversified regional allocation and a Shariah framework offers a differentiated, rules-based approach to accessing the market.
Timo Pfeiffer, Chief Markets Officer at Solactive, said: “We are pleased to support Lunate on the launch of the Chimera Solactive GCC Shariah Dividend ETF. The Solactive GCC Shariah Dividend Index combines a focus on dividends, a momentum overlay and a clearly defined Shariah framework to provide investors with a differentiated way to gain dividend-focused exposure across GCC equity markets.”
Sherif Salem, Partner & Head of Public Markets at Lunate, said: “We are excited to extend our partnership with Solactive, as we grow our comprehensive suite of market and thematic ETFs with the launch of the Chimera Solactive GCC Shariah Dividend ETF on the Abu Dhabi Securities Exchange. This innovative new ETF is the first Shariah-compliant ETF globally to offer investors access to multiple GCC markets within a single dividend-paying product, providing investors with a convenient way to gain diversified exposure to the region’s leading dividend-paying equities.”
Lunate and the ADX ETF ecosystem
With this launch, Lunate brings the total number of ETFs listed on the United Arab Emirates’ stock exchanges to 22, 20 of which are listed on the ADX. The ETF is managed by Lunate Capital LLC (regulated by the Securities and Commodities Authority), with Bank of New York Mellon acting as global custodian.
The ADX recorded an ETF trading volume of AED 155 million in the first quarter of 2026, more than triple the figure for the same period the previous year. The exchange remains the most liquid ETF hub in the MENA region.
Source : ETFWorld.co.uk
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