US, UK Investors Flock To Saudi-focused Funds

Exchange-traded funds in the US and the UK focused on Saudi Arabian equities are piling up new money this year

US, UK investors flock to Saudi-focused funds

The net flow as a percentage of assets for Saudi Arabia funds increased about 48 percent this year, more than any other country in a ranking compiled by Bloomberg, after Croatia.

Exchange-traded funds in the US and the UK focused on Saudi Arabian equities are piling up new money this year, placing the Middle Eastern kingdom high in a global ranking.

A London-based ETF and another that trades in New York together attracted around $327 million in new money since the beginning of January.

The net flow as a percentage of assets for Saudi Arabia funds increased about 48 percent this year, more than any other country in a ranking compiled by Bloomberg, after Croatia.

The appetite for ETFs offered by BlackRock Inc and Invesco jumped as the $539 billion stock market becomes included in major benchmarks tracking developing countries.

FTSE Russell began adding Saudi stocks this week, in the first of five stages to be fully implemented by March 2020. MSCI Inc will follow suit in two tranches later this year.

Bets on the Saudi market through funds based abroad have been profitable. They’ve delivered a return of about 12 percent each since the start of the year, compared with a gain of 10 percent for the Tadawul All Share Index. Total assets under management for both ETFs are at the highest since their inception.

For all the latest market news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.

Subscribe to Arabian Business' newsletter to receive the latest breaking news and business stories in Dubai,the UAE and the GCC straight to your inbox.

RECENT NEWS

UAEs Maseera Acquires Egyptian Fintech ADVA

The move marks a critical milestone in Maseera’s regional expansion strategy Read more

Oman Mandates IBAN For Domestic Transfers From July 2025

The move follows the Oman Central Bank's implementation of the IBAN system for international transfers from March 31, 2... Read more

Egypt And Jordan Thank The European Parliament For New Financial Aid

The European Union members recently approved loans worth $4.4 billion in three instalments to Egypt and $555 million to... Read more

Standard Chartereds SC Ventures To Replicate Asia, Africa SME Model In GCC

SC Ventures to bring its successful SME building strategy in India, South East Asia and Africa to GCC, and plans to rol... Read more

UAE Central Bank Revokes Licence Of Dynamics Insurance Brokers For Regulatory Breaches

Dynamics Insurance Brokers "failed to comply with the licensing terms and requirements issued by the Central Bank and w... Read more

Eid Al Fitr Holidays In The GCC; Dubais 100 Most Influential People; UAE Petrol Prices To Change; Royal Baby Announced – 10 Things You Missed This Week

Eid holidays, the Dubai 100, UAE petrol prices, Royal Baby named, Palm Jebel Ali investments and more top news stories ... Read more