ASB Capital has teamed up with Xtrackers by DWS to launch XASB, a new Sukuk exchange-traded fund (ETF) that has officially listed on the London Stock Exchange (LSE). The listing marks a major milestone for the Dubai-based asset manager and represents the first Shari’a-compliant ETF to be offered by Xtrackers, one of Europe’s largest ETF issuers.
A bell-ringing ceremony at the LSE on 4 November signalled the ETF’s debut, which aims to broaden access to the global Sukuk market. Designed as a regulated, transparent and low-cost investment vehicle, XASB provides exposure to more than 150 Sukuk issuances through a single trade, significantly reducing the traditional barriers to entry faced by investors.
The launch comes amid continued momentum in global ETF adoption. Total ETF assets worldwide reached US$15 trillion at the end of 2024, a 30 per cent year-on-year rise, driven by US$1.7 trillion in net inflows.
ASB Capital, which manages US$5.8 billion in assets, said the new ETF responds to the growing appetite for Sukuk – Islamic fixed-income instruments backed by tangible assets and widely issued by sovereigns and corporates. Despite the market’s size and resilience, retail and institutional investors have historically faced limited options for accessing Sukuk efficiently, due in part to high minimum investment requirements and product scarcity.
“ASB Capital was established with a clear purpose: to introduce innovative, efficient, and accessible investment solutions that create new opportunities for global investors,” said Hichem Djouhri, Senior Executive Officer at ASB Capital.
“Sukuk currently account for 45 per cent of the US$2.5 trillion USD-denominated debt market, making them increasingly difficult for mainstream investors to ignore. With forecasts suggesting the market could exceed US$2 trillion by 2030, demand is only set to rise.”
The partnership with Xtrackers by DWS anchors the ETF to one of Europe’s most established passive investment platforms, ensuring strong product structuring and regulatory credibility.
“By combining the transparency of ETFs with the growth and resilience of the global Sukuk market, we are opening the door to a broader investor base – from institutions to individuals,” said Houda Ennebati, Head of Xtrackers ETF Sales – France & MENA, DWS.
ASB Capital, licensed by the Dubai Financial Services Authority (DFSA), continues to expand its offering since launching earlier this year, building on the heritage of Al Salam Bank while pursuing a wider international strategy.