Indian stocks receive ETF in Gulf

This ETF will closely monitor the performance of Shariah-compliant Indian equities listed on the Bombay Stock Exchange

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Gulf investors are on the brink of accessing their inaugural regional exchange-traded fund (ETF) focused on Indian equities, according to reports from bnnbloomberg.ca.

Lunate Capital LLC is introducing the Chimera S&P India Shariah ETF, designed to replicate the performance of the S&P India Shariah Liquid 35/20 Capped Index. This ETF will closely monitor the performance of Shariah-compliant Indian equities listed on the Bombay Stock Exchange.

In 2023, Indian stocks experienced an eighth consecutive year of growth, solidifying the country’s status as one of the most preferred markets in Asia. This positive trend was fueled by India’s rapid economic expansion, positioning it as one of the fastest-growing major economies globally. Persistent investor concerns over the outlook for China, India’s primary emerging-market rival, further contributed to the gains. An informal survey conducted by Bloomberg News indicates that Indian equities are anticipated to continue their upward trajectory in 2024.

Although the S&P India Shariah Liquid 35/20 Capped Index registered a 16% increase last year, it fell short of the Nifty 50 Index’s 20% gain. The newly introduced ETF is set to encompass large-cap Indian stocks, including Reliance Industries Ltd., Infosys Ltd., and Tata Consultancy Services Ltd. Investors can subscribe to the fund from January 12 to 17, 2024.

This entity will subsequently be transferred to Abu Dhabi’s $244 billion International Holding Co., chaired by Sheikh Tahnoon, who serves as one of Abu Dhabi’s two deputy rulers, the UAE’s national security adviser, and is the brother to its president

As of 2021, approximately 3.5 million Indian expatriates, constituting about 30% of the Gulf country’s population, were residing in the United Arab Emirates. Bloomberg has disclosed that the UAE is contemplating an investment of up to $50 billion in India, positioning it as the nation’s second-largest trading partner. In pursuit of this investment initiative, entities overseen by Sheikh Tahnoon bin Zayed Al Nahyan, a member of Abu Dhabi’s ruling family, have initiated preliminary discussions to invest billions of dollars in India.

Lunate and Chimera Investments, among other entities under Sheikh Tahnoon’s purview, are slated to be consolidated into a new entity named 2PointZero. This entity will subsequently be transferred to Abu Dhabi’s $244 billion International Holding Co., chaired by Sheikh Tahnoon, who serves as one of Abu Dhabi’s two deputy rulers, the UAE’s national security adviser, and is the brother to its president.

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