Debuts give ETFs a surer foothold in Gulf

* username: rupertbu

They have been much anticipated and discussed but, largely because of market turmoil since the collapse of Lehmann Brothers in 2008, rather less a reality for investors.

In the past week, however, National Bank of Abu Dhabi has initiated the first exchange traded equity fund in the United Arab Emirates, and Falcom Financial Services of Saudi Arabia has launched the first ETF to list on the Saudi exchange, the Arab world’s largest bourse.

Last Thursday NBAD began trading its Dow Jones UAE 25 fund, which is listed on the Abu Dhabi stock exchange. On its first day of trading there were six trades totalling almost Dh328,000 ($89,300), according to the exchange. From a launch price of Dh5, the fund units closed up at Dh5.20 on the first day and were at Dh5.31 on Tuesday.