UAE firm plans Abu Dhabi-listed ETF

ADS Investment Solutions, a subsidiary of UAE-based financial firm ADS Securities, is planning to launch an ETF focused on Saudi Arabian equities.

The fund will be based on the new FTSE ADS Custom Saudi Minimum Variance Index, developed in partnership with index provider FTSE Russell. It will be incorporated in the Abu Dhabi General Market and listed on the Abu Dhabi Securities Exchange.

The chairman of ADS Investment Solutions, Mahmood Ebraheem Al Mahmood, said that the creation of a new fund platform will “open the door for local and regional investors, allowing them to capitalise on opportunities through trading in this local market”.

Interest in Saudi equities has grown ever since the kingdom was promoted to emerging market status by a number of index providers including FTSE Russell – foreign investors have purchased a net $2.7 billion of Saudi stocks so far this year. 

There are currently very few index tracking ETFs in the region and ADS claims that its new fund is the first cross-border ETF listed in the region and focused solely on Saudi stocks.

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