In a landmark step for the UAE’s capital markets, the Securities and Commodities Authority (SCA) has approved the cross-listing of two US-domiciled KraneShares ETFs, the KraneShares CSI China Internet ETF (KWEB) and the KraneShares Global Carbon Strategy ETF (KRBN) on the Abu Dhabi Securities Exchange (ADX).
As of 2025-11-27, the official listing circulars had not yet been posted on SCA or ADX websites, but market sources confirm that approvals have been granted and ADX is preparing the operational mechanics, including ticker assignment and market-making arrangements.
This marks the first time US-listed 1940 Act ETFs will trade on a UAE exchange, representing a structural shift in the region’s openness to cross-border ETF access. ADX, already the most active ETF venue in MENA and it has been expanding rapidly, with ETF turnover of roughly AED 1.86 billion in the first eight months of 2024, complemented by a growing thematic range in 2025. Adding KWEB and KRBN deepens its global toolkit and signals regulatory comfort with directly importing mature offshore vehicles.
Fund Profiles: KWEB and KRBN
KWEB: China’s Internet Champions
- Theme: Broad Chinese internet and digital-platform companies
- Index: CSI Overseas China Internet Index
- AUM: ~USD 9.1bn
- TER: 0.70%
- Domicile / Structure: US-domiciled, NYSE Arca primary listing
- 1-year total return: ~28% (as of late 2025)
- Characteristics: Highly concentrated, strongly cyclical, sensitive to Chinese regulatory and geopolitical risk
KRBN: Global Carbon Allowances
- Theme: Regulated carbon credit futures across EU ETS, UK ETS and North America
- Index: S&P Global Carbon Credit Index
- AUM: ~USD 170m
- TER: 0.90%
- Domicile / Structure: US-domiciled, NYSE Arca primary listing
- 1-year total return: Mid-teens (as of late 2025)
- Characteristics: Macro-driven, futures-based, influenced by emissions cap adjustments and industrial demand
Side-by-Side Comparison of the ETFs
How SCA Enables Foreign ETF Access
SCA’s foreign funds regime allows offshore ETFs to enter UAE markets only when they satisfy strict requirements on regulatory origin, disclosure, and distribution.
To qualify for cross-listing on ADX, a foreign ETF must be regulated by a recognised international authority and satisfy ADX’s requirements on structure, disclosure, and operational readiness. Unlike the marketing rules that govern foreign fund distribution in the UAE, the cross-listing framework allows both retail and institutional investors to trade the ETF once it is admitted to the exchange. The issuer must also appoint an ADX-approved local market maker and designate a legal representative in the UAE. In the case of the KraneShares cross-listings, Oceane Invest has been selected as the market maker, while Neovision Wealth will act as the funds’ local representative.
KWEB and KRBN meet these conditions as SEC-regulated, highly established US ETFs with deep trading histories, and their cross-listing on ADX does not alter their underlying domicile, structural features, tax treatment, or Sharia status.
What This Means for GCC & UAE Investors
For GCC and UAE investors, the cross-listings deliver several practical advantages. The ability to trade KWEB and KRBN during Gulf market hours means investors no longer need to wait for London or New York to open, which reduces overnight gap risk and improves day-to-day portfolio-management flexibility.
The ETFs will also trade in local currency on ADX, allowing investors to transact through familiar domestic channels. Because this is a true cross-listing, the ADX-listed shares are fully fungible with the primary NYSE Arca listings, and the transfer of shares between the two markets is facilitated by BNY Mellon, ensuring operational continuity for both regional and global investors.
Access through domestic brokers also removes the need for offshore accounts or US-market permissions, and the listings meaningfully broaden the onshore toolkit by making carbon allowances available on a UAE exchange for the first time and by introducing a non-Sharia China technology exposure that was previously unavailable locally.
Liquidity on ADX will also depend on the effectiveness of the appointed market maker, Oceane Invest, in keeping local pricing closely aligned with US indicative net asset values. Oceane Invest is a newly established, ETF-focused market-making firm founded by veteran asset-management and trading professionals with long careers in New York, and it is backed by GTS Securities, one of the major market makers in the United States.
Their involvement is expected to support tighter spreads and more consistent on-screen liquidity, although some institutions may still compare execution quality between ADX and the US market. In addition, distribution remains restricted to Professional Investors under SCA’s foreign-fund rules.
Conclusion
The SCA’s approval of KraneShares KWEB and KRBN marks a historical moment for the UAE’s market architecture, signaling a willingness to integrate globally significant US ETFs directly into ADX’s trading ecosystem.
It does materially expand the operational convenience and thematic reach available to GCC investors.
For institutional allocators, the ability to trade China’s platform economy and global carbon allowances within UAE market hours and under ADX’s custody and reporting infrastructure, represents a meaningful upgrade in market access. As ADX finalizes listing particulars, this development may well set the template for a broader wave of foreign ETF cross-listings, further embedding the UAE into the global ETF landscape.
