The Public Investment Fund has invested $200 million in Saudi Arabia’s first ETF that is listed worldwide
The Public Investment Fund (PIF) has put $200 million into the first exchange-traded fund (ETF) that is focused on Saudi Arabia and listed internationally.
ETF investment
The Public Investment Fund (PIF) has invested in a new fund called the SPDR JP Morgan Saudi Arabia Aggregate Bond ETF, which was launched recently. This fund is managed by State Street Global Advisors, and it is the first Saudi bond ETF to be listed in Europe. It is available on the London Stock Exchange and the Deutsche Börse’s Xetra.
The ETF gives investors the opportunity to invest in various Saudi financial products, including government and semi-government bonds, both in US dollars and Riyals, as well as sukuk bonds.
This investment is part of PIF’s effort to increase international access to the Saudi market. The fund has also previously invested in ETFs listed in Shanghai, Hong Kong, Tokyo, and Shenzhen.
The ETF is available to investors in several European countries, including the UK, Spain, Sweden, Austria, Denmark, Germany, Italy, the Netherlands, Finland, France, Luxembourg, and Norway.
Important Quote
“PIF’s investment in the first Saudi ETF listed internationally helps grow the Saudi market, attracts investors, and strengthens partnerships with other regions, leading to more international investment in Saudi Arabia,” said Yazeed Al-Humied, deputy governor and head of MENA investments at PIF.
GCC Debt Market
Fitch expects the debt markets in the Gulf Cooperation Council (GCC) countries to keep growing and remain among the largest issuers of dollar debt in emerging markets in 2025 and 2026, after China. The region will also be the biggest global investor and issuer of sukuk (Islamic bonds).
By the end of November 2024, the GCC’s debt market reached nearly $1 trillion, with 40% being sukuk. This shows an 11% growth compared to the previous year, according to Bashar Al Natoor, global head of Islamic finance at Fitch Ratings.
Saudi Arabia and the UAE have the most advanced debt markets, followed by Qatar, Bahrain, Oman, and Kuwait.
What to Watch
As of May 2024, global ETF (Exchange-Traded Fund) assets were about $13 trillion, with over 12,000 ETFs listed around the world, according to JPMorgan. This is expected to rise to over $19.2 trillion by June 2028, according to PwC.
Published: 10th January 2025
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