Saudi ETF to list in Tokyo

An ETF backed by the Saudi sovereign wealth fund Public Investment Fund (PIF) that will track Saudi stocks is set to launch on the Tokyo Stock Exchange.

A memorandum of understanding is expected to be signed by the PIF, Saudi telco National Technology Group and Japanese asset manager SBI Holdings, according to a report from Nikkei Asia.

Should the ETF be launched, it would be the first fund to be listed on the Tokyo Stock Exchange to track Saudi equities.

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The MoU is indicative of greater cooperation between Japan and Saudi Arabia. SBI is also expected to sign an agreement with the Saudi Electricity Company while Saudi oil company Aramco has launched an initiative to help Japanese startups entering the kingdom.

The collaboration is also another example of the Saudi financial market linking up with exchanges elsewhere as part of its economic diversification strategy designed to lessen the reliance on oil revenue.

In November, the Hong Kong Exchanges and Clearing Limited announced the listing of the first ETF in Asia to track Saudi stocks.

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