National Bank of Abu Dhabi is set to list the Middle East’s first exchange-traded fund on the Abu Dhabi stock market in two months.
National Bank of Abu Dhabi is set to list the Middle East’s first exchange-traded fund on the Abu Dhabi stock market in two months.
The move aims to boost international investment in the local market.
NBAD’s ETF is licensed by "a global, leading index provider" and includes 50 traded stocks, Giyas Gokkent, NBAD’s co-head of asset management and chief economist, told Zawya Dow Jones.
"We’re planning to launch in about two months, subject to regulatory approval," Gokkent said. "We think that there will be a lot of demand, because exposure of international investors to this region is still behind the curve," he said, adding that the fund will provide "exposure and passive management in an efficient way, when active fund management has taken a hit."
The Abu Dhabi Securities Exchange has planned to list ETFs since 2007 to boost institutional investment and attract international investors to its market.
The delay for the Abu Dhabi exchange has been "mainly because of regulatory issues," Gokkent said, adding that "it’s a fantastic time to launch a product as markets are relatively cheap in a historical context."
