State Street Global Advisors has launched a Saudi Arabia aggregate bond Ucits ETF on the Xetra and London Stock Exchange.
The new fund aims to track the newly-created index J.P. 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.
Emmanuel Laurina, Head of Middle East, Africa and Official Institutions, SSGA, said: “We are pleased to offer investors cost effective access to the fast growing fixed income market in Saudi Arabia, one of the leading issuers of investment grade international bonds among emerging markets.
“As the Kingdom continues to diversify its economy through energy transition, infrastructure and other growth initiatives, we believe there are appealing investment themes for international investors to capture through a diversified exposure to Saudi bonds.”
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.
