Chimera Capital, an Abu Dhabi-based investment management firm, said Q Market Makers has become the market maker for four of its exchange-traded funds listed on Abu Dhabi Securities Exchange.
QMM, part of Abu Dhabi holding company ADQ, played an active role in the past 18 months to boost liquidity and trading activity on the ADX, Chimera Capital, a subsidiary of Chimera Investment, said in a statement on Monday. QMM was launched in 2020.
“By harnessing their specialised expertise, innovative technology and capital deployment capabilities, QMM will help increase Chimera’s ETF activity and price efficiency,” Syed Shueb, chairman of Chimera Capital, said. “QMM’s involvement further signifies the maturity of the ever-growing ETF market in the UAE.”
ETFs are a basket of securities consisting of stocks, bonds, commodities or other financial assets that track global markets. They are popular with retail investors because of their low-cost fees and easy access to a range of diverse assets.
Bourses in GCC countries are accelerating efforts to diversify their product offerings to attract more foreign direct investment and boost trading activity as their economies recover from coronavirus-induced headwinds.
Globally, massive inflows and stimulus-fuelled stock markets lifted the total investment in listed ETFs to $9.46 trillion, data provider ETFGI said last August. That is more than double the amount at the end of 2018 and more than triple the $3tn total hit in May 2015.
In August 2020, Chimera Capital launched the first ETF tracking a Sharia-compliant index through the UAE’s two main stock exchanges. The Chimera S&P UAE Sharia ETF has two different share classes that track stocks listed in Abu Dhabi and Dubai.
The company listed its Chimera S&P UAE Sharia ETF — Share Class A — in Abu Dhabi, and did a separate listing for the Share Class B category on the Dubai Financial Market.
Earlier this year, the company also listed the Chimera S&P KSA Sharia ETF as well as the Chimera S&P Kuwait Sharia ETF on ADX.
“ADQ’s QMM has played a significant role in the exchange’s strategy to attract new investors and issuers and deepen market liquidity,” said Saeed Al Dhaheri, managing director and chief executive of ADX.
"Under our ADX One strategy, we are accelerating efforts to encourage new listings and introduce innovative products and services that will enhance our dynamism and attract more investors to participate in Abu Dhabi’s sustainable growth story.”
Chimera Capital, which is regulated by the UAE’s Securities and Commodities Authority, plays an active role in the alternative asset management space. It is owned by Chimera Investment, which is part of Abu Dhabi’s Royal Group.
Earlier this month, Chimera Investment and ADQ announced the setting up of the UAE’s first special purpose acquisition company (Spac) with the aim of investing in tech-focused businesses.
