Saudi Arabia’s Public Investment Fund (PIF) has invested $200 million in the newly launched SPDR J.P. Morgan Saudi Arabia Aggregate Bond UCITS ETF.
State Street Global Advisors, the U.S.-based firm behind the ETF, said that it is the first fixed-income UCITS ETF focused on Saudi Arabia to debut in Europe. This move comes as global investors seek opportunities in Saudi Arabia’s expanding bond market, fueled by economic and infrastructure projects under Vision 2030.
The launch of the ETF highlights PIF’s strategy to boost international access to Saudi Arabia’s diverse market and attract foreign investment, with PIF also holding stakes in ETFs across Hong Kong, Shanghai, Shenzhen, and Tokyo.
“PIF’s investment into the first internationally listed fixed-income Saudi ETF further deepens the Saudi market, while attracting investors and strengthening cross-geography partnerships, increasing international investment in Saudi Arabia,” Yazeed Al-Humied, deputy governor and head of Middle East and North Africe Investments at PIF, said in a press release.
UCITS ETF Tracks Saudi Financial Instruments
Undertakings for Collective Investment in Transferable Securities (UCITS) are EU regulations that create a standardized framework for investment funds marketed within the economic bloc. The new SPDR J.P. Morgan Saudi Arabia Aggregate Bond UCITS ETF, listed on the London Stock Exchange and Deutsche Börse’s Xetra in Frankfurt, tracks the J.P. Morgan Saudi Arabia Aggregate Index.
This index offers exposure to Saudi Arabia’s financial instruments, including liquid government and quasi-government bonds denominated in dollars and Saudi riyals, along with sukuk bonds.
“We are delighted to see such significant early-stage commitment from PIF into the SPDR J.P. Morgan Saudi Arabia Aggregate Bond UCITS ETF, a first of its kind in the industry. The creation of this fund sprung from our ambition to provide investors a compelling and innovative opportunity,” said Yie-Hsin Hung, CEO of State Street Global Advisers.
The ETF is available to investors across multiple European countries, including Austria, Denmark, Finland, France, Germany, Italy, Luxembourg, the Netherlands, Norway, Spain, Sweden, and the UK.
