Abu Dhabi-based investment manager Lunate has announced the launch of its first GCC-focused Sharia-compliant, dividend-paying exchange-traded fund (ETF), which is set to be listed on the Abu Dhabi Securities Exchange (ADX) on June 23. The new fund is designed to provide investors with diversified exposure to Gulf markets while adhering to Islamic investment principles.
The ETF will track the Solactive GCC Shariah Dividend Index, which consists of dividend-paying companies that meet Sharia-compliance requirements across the Gulf Cooperation Council (GCC). The index includes leading companies from the UAE, Saudi Arabia, and Qatar, representing sectors such as materials, telecommunications, energy, and industrials.
According to Lunate, the fund aims to distribute dividends to investors on a semi-annual basis. The company said the ETF offers a unique opportunity for investors seeking income-generating investments while gaining exposure to multiple GCC markets through a single investment vehicle.
Sherif Salem, Partner and Head of Public Markets at Lunate, described the product as the first Sharia-compliant ETF globally to provide access to several GCC markets within one dividend-paying fund. He added that the upcoming launch marks Lunate’s 20th ETF listing on ADX and its 22nd ETF listing across the UAE.
ADX Group Chief Executive Officer Abdulla Salem Alnuaimi said the listing reflects the growing demand for ETFs among investors seeking diversified exposure to various market themes and indices. He noted that ETF trading activity on the exchange more than tripled year-on-year during the first quarter of 2026, reaching AED155 million ($42 million).
Lunate Capital will serve as the fund manager, while Bank of New York Mellon has been appointed as the global custodian. The Solactive GCC Shariah Dividend Index is maintained by Germany-based financial index provider Solactive AG.