Saudi Arabia has granted approval for its first exchange-traded funds (ETFs) tracking equities listed in Hong Kong on Tuesday, the Capital Market Authority (CMA) said, marking the debut of such a product in the Middle East.
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The move follows efforts by Beijing and Hong Kong to deepen ties with Arab countries in response to escalating tensions with the West.
Saudi Arabia’s CMA said in a statement it approved local asset manager AlBilad Investment Company’s request to offer “Albilad CSOP MSCI Hong Kong China Equity ETF” units on the Saudi Stock Exchange (Tadawul). However, the regulator did not disclose the fund’s launch schedule.
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The ETF is a collaborative effort with Hong Kong’s CSOP Asset Management, and focused on Hong Kong-listed companies including Chinese firms traded in the city.
Last November, Hong Kong launched Asia’s first ETF tracking Saudi equities – CSOP Saudi Arabia ETF – and has been actively seeking cross-listing opportunities in both capital markets.