Top UAE ETFs for investors to watch in 2025: The complete guide
UAE investors have access to over 50+ ETFs across local and international markets, from Shariah-compliant options to global diversification plays. Whether you're seeking exposure to UAE blue-chips, emerging markets, or developed economies, our comprehensive guide covers the top ETF options available to Dubai and Abu Dhabi investors in 2025. We'll show you how to buy shares in UAE markets, explore the best trading platforms UAE has to offer, and explain why ETFs are perfect for trading for beginners.
Important to know
This article is for informational purposes only and does not constitute investment advice. Please ensure you understand the risks and consider your individual circumstances before trading.
Key takeaways
- ETFs, or exchange-traded funds, are a type of investment vehicle that tracks the performance of an underlying set of assets, or an index
- They offer diversification in investments and can provide a low-cost way to access the markets
- They can sometimes be lower risk than direct stock trading, but they still come with the risk of losing all your capital
What is an ETF?
An ETF, which stands for exchange-traded fund, is a type of investment vehicle that enables you to track the performance of an underlying set of assets or an index. ETFs are bought and sold on exchanges.
You get different types of ETFs; some cover stocks, whereas others track indices. In this article, we’ve listed a mixture of both.
ETFs can vary in a few ways. Typically, you’ll find:
- Physically replicated ETFs: buy the underlying asset, such as stocks, which the benchmark tracks
- Synthetically replicated ETFs: use derivatives to gain exposure to the benchmark and track performance
- Income distribution ETFs: return dividends to investors
- Accumulated distribution ETFs: reinvest dividends into the fund
- Smart beta ETFs: use extra rules in an attempt to outperform their benchmark
Passive vs active ETFs
Passive ETFs are those that track an index, say the S&P 500, and aim to replicate its performance. They hold the same stock in the same proportions as the index.
Active ETFs are managed by professionals who proactively try to outpace the benchmark. They don’t necessarily track an index, and the fees on these are usually higher due to the active management.
UAE ETF market landscape in 2025
The UAE ETF market has grown substantially over the past year, with investors now having access to over 50 exchange-traded funds across the Dubai Financial Market and Abu Dhabi Securities Exchange1. This expansion reflects the UAE's position as a regional financial hub and growing investor appetite for diversified, cost-effective investment options.
Key market developments in 2025 include:
- Established leaders: international providers like BlackRock and regional specialists like Chimera dominate the landscape
- Shariah-compliant growth: increased demand for Islamic investment principles has driven new product launches2
- Regulatory clarity: the DFSA and SCA have strengthened oversight, providing greater investor protection3
- Platform accessibility: major brokers now offer commission-free ETF trading, reducing barriers for retail investors4
- Liquidity improvements: daily trading volumes have increased across most UAE-listed ETFs
The UAE's strategic location between Europe, Asia and Africa, combined with its business-friendly environment, continues to attract both regional and international ETF providers seeking to serve Middle Eastern investors.
Advantages of ETFs
The pros of ETFs include:
- Diversification: ETFs can provide exposure to multiple industries in one investment vehicle. For example, you might invest in an ETF that includes stocks from the automotive, telecommunications and health services industries. ETFs can also invest by country and index
- Accessibility: ETFs can provide a relatively low-cost way to gain exposure to different asset classes, investment strategies and markets
- Similar to stock trading: investing in ETFs is very much like trading stocks in several ways. For example, you trade them at a market-based price that’s updated throughout the day
- Highly liquid: popular ETFs are often more liquid than stocks, so you shouldn’t have a problem buying or selling them due to a lack of demand or supply
Disadvantages of ETFs
Let’s now look at some of the disadvantages of trading ETFs:
- Costs can be greater than stock trading: you’re looking at commissions and management fees when you invest in actively managed ETFs. Additionally, spreads can be wider on more niche ETFs than they are on stocks
- Lower dividend yields: while you do get dividend stocks in ETFs, they might not necessarily be the highest-yielding ones
- Volatility: ETFs are also vulnerable to volatility, and there’s no guarantee that your investment will grow
Top UAE ETFs: our complete selection
How we selected these ETFs
Our evaluation process considered multiple factors to identify the most suitable options for UAE investors:
- Liquidity: minimum daily trading volumes to ensure easy buying and selling
- Cost efficiency: competitive expense ratios suitable for long-term investors
- Geographic diversity: mix of local, regional and international exposure
- Investment principles: options for both conventional and Shariah-compliant investing
- Track record: established performance history where available
- Accessibility: available to UAE retail investors through local brokers
ETF name10 |
Share class |
Exposure |
Highlight |
US-listed |
Comprehensive UAE equity market |
Largest UAE ETF by AUM |
|
B – Income |
Largest Shariah-compliant companies in the UAE |
Doesn’t include low-liquidity stocks |
|
A – Accumulating |
UAE stock market |
UCITS compliant |
|
B – Income |
Tracks the S&P India Shariah Liquid 35/20 Capped Index |
Focuses on large companies |
|
B – Income |
Top 15 companies listed on the ADX |
Access to main investment sectors |
|
D – Income |
Comprehensive German stock index |
Exposure to Europe’s largest economy |
2. Chimera S&P UAE Shariah ETF (Share Class B – Income) (DFM: CHAESHIN)5
Exposure: The largest Shariah-compliant companies in the UAE market
The Chimera S&P UAE Shariah ETF tracks the S&P UAE Domestic Shariah Liquid 35/20 Capped Index, which measures the performance of UAE stocks that meet strict Islamic investment principles. It doesn’t include low-liquidity companies.
It’s shown resilience in the UAE market, possibly because it’s attractive to stock traders seeking exposure to the UAE’s growing economy – and those who want to invest ethically.
With the UAE’s continued economic diversification initiatives, this ETF benefits from the country’s transformation into a regional business hub.
Highlights:
- Shariah-compliant, meeting Islamic principles
- Exposure to the largest and most liquid UAE companies
- Spread across a number of different sectors, providing diversification
3. Chimera S&P UAE UCITS ETF (Share Class A – Accumulating) (DFM: CHAE)5
Exposure: UAE stock market, mainly the country’s most significant publicly traded companies
The Chimera S&P UAE UCITS ETF offers enhanced regulatory protection due to its UCITS-compliance, which ensures deep liquidity, diversification and transparency.
The ETF reinvests all dividends automatically, giving stock traders the benefit of compound earnings (which is when your earnings generate earnings). This is good for long-term investors, such as those looking to bolster their retirement savings.
It comprises companies across a broad range of industries, including banking, telecommunications, real estate and energy.
Highlights:
- UCITS compliance, which means it’s based on a strict European framework that protects investors
- Diversification in companies, contributing to the UAE’s initiative to move away from an oil-based economy
- Compound growth leads to long-term earnings growth
4. Chimera S&P India Shariah ETF - Share Class B – Income (ADX: INDI)6
Exposure: Tracks the S&P India Shariah Liquid 35/20 Capped Index
The Chimera S&P India Shariah ETF provides investors with access to one of the world’s fastest-growing economies – India. The S&P India Shariah Liquid 35/20 Capped Index measures the performance of the 30 largest Shariah-compliant Indian companies.
India is set to become the world’s third-largest economy by 2030, according to a report by S&P Global.7 The country offers investment opportunities in the technology, pharmaceutical, financial services and consumer goods sectors.
Because the ETF focuses on large companies, it’s relatively stable and is a good investment to keep an eye on.
Highlights:
- Access to India’s growing IT services and digital transformation companies
- Meets Islamic-investment principles, being Shariah-compliant
- Exposure to one of the world’s fastest-growing economies
5. Chimera FTSE ADX 15 ETF Class B – Income (ADX: CHADX15)6
Exposure: Top 15 companies listed on the Abu Dhabi Securities Exchange
The Chimera FTSE ADX 15 ETF tracks the FTSE ADX 15 Index, which accounts for the largest and most liquid companies on the ADX. These are chosen due to their market capitalisation and median daily trading value.
The fund provides access to Abu Dhabi’s main investment sectors, including major banks, telecommunications companies and health services businesses.
Highlights:
- Focuses on Abu Dhabi’s blue-chip companies
- Net asset value (NAV) returns have increased by 18.85% in the past year8
- Backed by the established FTSE Russell, ensuring a healthy methodology
6. Chimera S&P Germany UCITS ETF – Share Class D – Income (ADX: GRMNY)6
Exposure: A comprehensive German stock index
The Chimera S&P Germany UCITS ETF provides investors with exposure to Europe’s largest economy (Germany, by GDP).9 It includes a number of sectors, such as automotive, technology and financial services. The UCITS structure ensures transparency and high regulatory standards, while the Share Class D provides regular cash flows.
Germany is an attractive investment market, with its strong export economy and technological innovation.
UAE-based investors would do well to consider Europe’s economic powerhouse as an investment destination, partially due to the country’s political stability.
Highlights:
- European regulatory framework with UCITS ensures rigorous investor protection
- EUR exposure provides a natural hedge against the AED/USD currency pair
- Benefits from Germany’s strong position in global trade
How to trade ETFs with IG UAE
CFDs
- Open a CFD trading account with IG UAE
- Search for ETFs on the IG platform
- Decide whether to go long (buy) or short (sell)
- Choose your position size
- Set stop-loss and limit orders
- Place your trade and monitor it
Stock trading
- Open a stock trading account with IG UAE
- Search for ETFs available for direct ownership
- Choose the ETF you want to buy
- Determine how many stocks you want to purchase
- Place your order
- Monitor your investment
FAQs about ETFs
Are ETFs better than stocks?
Neither ETF investing nor stock trading is better than the other. The choice depends on your investment goals, risk tolerance and the fees you're willing to pay.
ETFs offer instant diversification and professional management, making them suitable for investors who want broad market exposure without researching individual companies. However, they come with management fees and you can't outperform the market.
Individual stocks allow you to target specific companies and potentially achieve higher returns, but require more research and carry higher risk through a lack of diversification.
Many successful investors use both ETFs for core holdings and individual stocks for targeted opportunities.
What's the minimum investment for UAE ETFs?
Most UAE ETFs don't have minimum investment requirements, meaning you can buy as little as one share. However, practical minimums depend on your chosen broker:
- Local brokers (DFM/ADX listed ETFs): often no minimum, but check broker account minimums
- International platforms: usually $50 – $100 minimum deposit
- Robo-advisors like Sarwa: typically $500 – $1,000 minimum for portfolio management
Remember to factor in broker fees when determining your minimum investment, as small trades may be proportionally expensive.
Are UAE ETFs Shariah compliant?
Not all UAE ETFs are Shariah compliant. Currently available options include:
Shariah-compliant ETFs:
- Chimera S&P UAE Shariah ETF
- Chimera S&P India Shariah ETF
- Various Islamic-focused international ETFs
Conventional ETFs:
- iShares MSCI UAE ETF
- Chimera S&P UAE UCITS ETF
- Most international equity ETFs
Always check the ETF's prospectus or contact your broker to confirm Shariah compliance status, as screening criteria can vary between providers.
Can UAE residents buy US-listed ETFs?
Yes, UAE residents can generally buy US-listed ETFs, but there are considerations:
Access methods:
- International brokers offer direct access
- Some UAE platforms provide access to US markets
- Minimum account sizes may apply
Important considerations:
- Tax implications: US withholding tax may apply to dividends
- Currency risk: USD exposure affects returns when converted to AED
- UCITS alternatives: European ETFs often provide similar exposure with better tax treatment
- Broker fees: international trading may incur higher costs
Check with your broker about specific access, fees and any restrictions on US ETF trading.
What are UCITS ETFs and why do they matter?
UCITS (Undertakings for Collective Investment in Transferable Securities) ETFs are European-regulated funds that often provide better terms for UAE investors compared to US alternatives.
Key advantages for UAE residents:
- Regulatory protection: strict European oversight and investor protections
- Currency options: many offer USD, EUR or GBP share classes
- Broader access: available through most UAE brokers
Examples available to UAE investors:
- Chimera S&P UAE UCITS ETF
- Various iShares UCITS ETFs
- Vanguard UCITS ETFs
Which UAE broker has the lowest ETF fees?
ETF fees vary significantly between UAE brokers and depend on whether you're trading local or international ETFs:
Fee types to compare:
- Trading commissions: per-transaction fees
- Spreads: difference between buy/sell prices
- Currency conversion: for international ETFs
- Account maintenance: annual or monthly fees
- Inactivity fees: charges for dormant accounts
Money-saving tip: For buy-and-hold investing, focus on total costs rather than just trading fees. A broker with higher commissions but lower spreads might be cheaper for large trades.
Always request a complete fee schedule from your broker and calculate total costs based on your expected trading frequency.
Are ETFs closed-end funds?
No, ETFs are not closed-end funds, although both are types of investment funds traded on exchanges.
Key differences:
ETFs (exchange-traded funds):
- Can create or redeem shares based on demand
- Trade close to their net asset value (NAV)
- Generally more liquid
- Lower premiums/discounts to NAV
Closed-end funds:
- Fixed number of shares after initial offering
- Can trade at significant premiums or discounts to NAV
- May be less liquid
- Price is determined purely by supply and demand
Most funds available to UAE investors are ETFs rather than closed-end funds, offering better liquidity and pricing efficiency.
Are ETFs and mutual funds the same?
ETFs and mutual funds both pool money from multiple investors but differ significantly in how they trade and operate:
ETFs:
- Trade on exchanges during market hours like stocks
- Real-time pricing throughout the trading day
- Generally lower fees
- Can be bought/sold instantly
Mutual funds:
- Trade once daily after market close
- Single price per day based on NAV
- Often higher management fees
- May have minimum investment requirements
- Orders processed at the end of the trading day
For UAE investors: ETFs often provide more flexibility and lower costs, making them popular for both beginners and experienced investors. However, some actively managed mutual funds may outperform their ETF equivalents.
What's the difference between ETFs and index funds?
The main differences relate to structure and trading:
ETFs:
- Trade on exchanges like stocks
- Real-time pricing during market hours
- No minimum investment (beyond one share)
- Lower expense ratios typically
Index funds (mutual funds):
- Trade once daily at NAV
- Often have minimum investments ($1,000+)
- May have higher fees
- Orders executed at day's end
In the UAE context: most index exposure comes through ETFs rather than traditional index mutual funds, as ETFs offer greater accessibility and lower costs for retail investors.
Bottom line: both track market indices, but ETFs provide more trading flexibility and are more accessible to UAE retail investors.
Footnotes
- Dubai Financial Market, June 2025; Abu Dhabi Securities Exchange, June 2025
- Gulf News - 847 new ETFs launched globally in 2025, May 2025
- Best ETF Trading Platforms in UAE [2025], May 2025
- Interactive Brokers UAE Review, March 2025
- Dubai Financial Market, June 2025. IG UAE does not offer access to DFM.
- Abu Dhabi Securities Exchange, June 2025. IG UAE does not offer access to ADX.
- S&P Global, India Forward: Transformation Perspectives report, May 2025
- Trading View, June 2025
- Trading Economics, June 2025
- IG UAE only offers access to iShares MSCI UAE ETF. However, you can trade Chimera Investment Corp through IG UAE.
Important to know
This information has been prepared by IG Limited (DFSA reference No. F001780). It is intended for general information purposes only and does not take into account your personal objectives, financial situation or needs. It should not be regarded as investment advice or a recommendation. Trading CFDs carries a high level of risk and professional clients can lose more then they deposit. Please ensure you fully understand the risks involved and seek independent advice if necessary. All information is accurate at the time of publication and may be subject to change.
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- CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. Professional Clients can lose more than they deposit.
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