Saudia Arabia’s sovereign wealth fund has invested $200m in the recently launched SPDR JP Morgan Saudi Arabia Aggregate Bond UCITS exchange traded fund.
The ETF, which listed in London and Frankfurt last month, aims to track the newly-created index JP Morgan Saudi Arabia Aggregate Index, developed in collaboration with SSGA, to provide investors with exposure to the performance of liquid, USD-denominated and Saudi Riyal-denominated government and quasi-government bonds, including Sukuks bonds.
The fund is the first Saudi Arabia fixed income undertaking for collective investment in transferable securities (UCITS) ETF in Europe.
Yazeed Al-Humied, Deputy Governor and Head of MENA Investments at Saudi Arabia’s Public Investment Fund (PIF), said: “PIF continues to create opportunities, open gateways and enable access to Saudi Arabia’s diverse and dynamic capital market.
“PIF’s investment into the new Saudi ETF further deepens the Saudi market, while attracting investors from across Europe and strengthening cross-geography partnerships, increasing international investment in Saudi Arabia.”
Yie-Hsin Hung, Chief Executive Officer, State Street Global Advisors, said: “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. State Street Global Advisors is honoured to play a part in Saudi Arabia’s economic evolution.”
Growth of the Saudi bond market has accelerated over recent years. The total amount of outstanding bonds issued by Gulf Cooperation Council (GCC) countries has more than tripled since 2019, reaching nearly US$1.35 trillion in September 2024.
The fund is available to investors in Austria, Denmark, France, Finland, Germany, Italy, Luxembourg, Netherlands, Norway, Spain, Sweden, and the UK.
