Saudi Arabia has approved its first exchange-traded funds (ETFs) tracking Hong Kong-listed equities, marking a significant milestone for the Middle East.
This move aligns with efforts by Beijing and Hong Kong to strengthen ties with Arab nations amid increasing tensions with the West.
The Capital Market Authority (CMA) of Saudi Arabia announced the approval of AlBilad Investment Company’s request to list “Albilad CSOP MSCI Hong Kong China Equity ETF” on the Saudi Stock Exchange (Tadawul). However, the launch date remains undisclosed.
The ETF is a joint venture with Hong Kong’s CSOP Asset Management and targets Hong Kong-listed companies, including Chinese firms.
In November, Hong Kong introduced Asia’s first ETF tracking Saudi equities, the CSOP Saudi Arabia ETF, and has been exploring cross-listing opportunities between the two regions.