Hong Kong has launched Asia’s first exchange-traded fund (ETF) tracking Saudi sovereign sukuk, in a landmark moment for cross-border financial collaboration. The Premia BOCHK Saudi Arabia Government Sukuk ETF, now listed on the Hong Kong Stock Exchange, follows the iBoxx Tadawul Government & Agencies Sukuk Index, covering both riyals and US dollar-denominated sukuk issued by the Saudi government and its agencies.
Key Highlights:
- Traded under stock codes 3478 (HKD) and 9478 (USD).
- Approved by Hong Kong’s Securities and Futures Commission.
- Quarterly distributions in USD; fees capped at 0.35%, with a projected tracking difference of -2%.
- Managed by Premia Partners with BOCHK Asset Management as investment adviser.
The ETF’s launch coincided with the Capital Markets Forum (CMF) in Hong Kong, co-hosted by Saudi Tadawul Group and HKEX, focused on deepening capital market links between the Middle East and East Asia under the theme “Powering Connections.”
Leadership Commentary:
- Mohammed Al-Rumaih, CEO of Saudi Exchange: “We aim to reinforce the Saudi capital market’s role as a global hub bridging East and West.”
- Bonnie Y. Chan, CEO of HKEX: “This forum fosters collaboration across Hong Kong, Mainland China, and the Middle East.”
- Faris Al-Ghannam, CEO of HSBC Saudi Arabia: “Saudi Arabia is becoming a haven for investors amid global volatility. Our partnership with China is reenergizing the Silk Road.”
The move is aligned with Saudi Arabia’s Vision 2030, which seeks to transform its capital markets and attract global investment, while Hong Kong reinforces its role as a gateway for East–West capital flows.