Lunate is set to launch the Chimera Solactive GCC Shariah Dividend ETF (GCCDIV), a new exchange-traded fund designed to provide investors with diversified exposure to high-dividend-yielding Shariah-compliant companies across the GCC. The ETF is scheduled to launch on the Abu Dhabi Securities Exchange (ADX) on June 23, 2026, and will trade in UAE dirhams.
Benchmark
GCCDIV tracks the Solactive GCC Shariah Dividend Index (SGCCSHDN), a rules-based benchmark designed to provide exposure to high-dividend-yielding Shariah-compliant companies across the UAE, Saudi Arabia and Qatar.
The index consists of 20 constituents selected according to dividend and Shariah screening criteria and serves as the foundation for the ETF's investment strategy. Unlike traditional market-cap-weighted benchmarks, the index applies a dividend-focused weighting methodology, allowing companies with higher dividend yields to receive larger allocations.
The Opportunity
The GCC has become one of the few regions globally where investors can still find a combination of attractive dividend yields, relatively strong balance sheets and exposure to economies undergoing structural transformation. Across the UAE, Saudi Arabia and Qatar, many listed companies operate in sectors supported by long-term government investment programs, infrastructure spending and growing domestic consumption.
Unlike many mature dividend markets, where high yields are often concentrated in slow-growth businesses, the Gulf offers exposure to companies that continue to generate significant cash flows while benefiting from economic diversification initiatives and expanding capital markets. Telecommunications operators, industrial companies, energy firms and consumer-facing businesses have historically played an important role in returning capital to shareholders through regular dividend distributions.
According to investor materials, the Solactive GCC Shariah Dividend Index currently offers an indicative dividend yield of approximately 6.2%. The strategy seeks to capture companies with strong dividend-paying characteristics while maintaining compliance with recognized Islamic screening standards.
The opportunity also comes at a time when GCC capital markets are attracting increasing international attention. According to Nukoud's GCC ETF Market Monitor, the region's ETF market reached approximately $9.35 billion in assets under management across 39 listed products as of the first quarter of 2026, reflecting growing investor interest in accessing Gulf markets through listed investment vehicles.
How It Works: Index Methodology
The Solactive GCC Shariah Dividend Index is designed to identify high-dividend-yielding companies that meet recognized Islamic screening standards.
The methodology begins with a universe of listed GCC companies. Firms involved in non-compliant business activities are excluded, while financial ratio screens remove companies with excessive leverage or non-compliant sources of income.
Eligible companies are then ranked based on dividend yield and selected for inclusion in the index. The benchmark currently holds 20 constituents across the UAE, Saudi Arabia and Qatar.
Unlike traditional market-cap weighted indexes, constituents are weighted according to dividend yield, meaning companies with higher dividend yields receive larger allocations. The methodology also incorporates a 12-month momentum overlay designed to reduce exposure to companies experiencing significant share price weakness.
The resulting portfolio seeks to provide investors with a combination of dividend income, regional diversification and Shariah compliance within a transparent, rules-based framework.
Sector allocation
The index is diversified across several sectors of the GCC economy, with telecommunications, materials, energy and consumer-related businesses representing a significant share of the portfolio.
Country allocation
The UAE represents the largest country allocation within the index, followed by Saudi Arabia and Qatar.
Top 10 holdings
The top ten constituents account for the majority of the index and include leading dividend-paying companies from across the GCC.
GCC ETFs takes a step forward
The launch will arrive as both the GCC ETF market and the global Islamic finance industry continue to mature. With Islamic finance assets now measured in the trillions of dollars and investor demand increasingly shifting toward transparent, liquid and low-cost investment vehicles, Shariah-compliant ETFs are becoming an increasingly important segment of the market.
At the same time, Gulf capital markets are undergoing rapid development, supported by growing foreign participation, deeper liquidity and an expanding range of listed products. As investors look for efficient ways to access the region's dividend-paying companies, GCCDIV represents another step in the evolution of the GCC ETF ecosystem and the broader internationalization of Islamic investing.
