Bringing you live news and features since 2006 

HSBC launches new Saudi indices, funds and access products


HSBC Corporate, Investment Banking and Markets Global Research has launched the HSBC Saudi Equity Index a benchmark for the returns generated by the Saudi equity market and is launching a

HSBC Corporate, Investment Banking and Markets Global Research has launched the HSBC Saudi Equity Index a benchmark for the returns generated by the Saudi equity market and is launching a tailored sector index, the HSBC Saudi Petrochemical Equity Index. Both indices are reviewed quarterly.

The Saudi Index is comprised of 36 liquid stocks representative of the market capitalisation of the broad range of economic sectors in Saudi. The companies included reflect the breadth and diversity found in the Saudi stock market, from banks to bookstores, from petrochemicals to publishing.

Created to provide clients with a potentially high growth sector benchmark, the Petrochemical Index provides exposure via a portfolio of 11 shares with weightings representative of their market capitalisation in this sector. The Saudi economy is largely driven by oil prices and by the Petrochemical industry and this sector index includes some of the most important oil industry companies in the world such as SABIC and SAFCO.

Complementing these indices, HSBC Saudi Arabia has launched two new open ended funds: the HSBC Saudi Equity Index Fund and the HSBC Saudi Petrochemical Equity Opportunities Fund. Both passively managed funds are aimed at institutional investors and third party distributors and represent one practical way for offshore investors to gain exposure to the Saudi equity market, which is currently closed to direct investment by non-domiciled investors.

Osama M Shaker, Head of Asset Management in Saudi, says,’This is an extremely exciting development for us and adds significantly to our existing offering of Saudi funds which have seen strong growth and increasing interest in the last three months.’

HSBC Saudi Arabia Limited’s existing Saudi Equity Funds, having together over USD2.5bn AUM, are: Amanah Saudi Equity Fund, Amanah Saudi Industrial Companies Fund, Financial Institutions Fund, Saudi Equity Fund, Saudi Equity Trading Fund. HSBC is already able to offer access via participatory notes and swaps over these existing funds.

Additionally, HSBC CIBM is offering market access through participatory notes and swaps over these funds as another way to gain exposure to the Saudi market, particularly for those institutional investors who want to achieve exposure without the inconvenience and time delay which can be experienced in setting up locally or who are looking for gearing, leverage and funding.

HSBC Bank plc is also offering participatory notes and swaps to enable investors to gain individual equity exposure in the following ME markets: Abu Dhabi, Bahrain, Dubai DFM, Dubai DIFX, Egypt, Israel, Jordan, Kuwait, Lebanon, Oman and Qatar.

Hugh Evans, Global Head of Access Products, says ‘The Saudi market is currently in a period of rapid expansion and has been a real success story recently. These funds and access products are suited to a wide range of investors who want to gain exposure to a market that is otherwise closed for direct investment by non-GCC residents.’

‘Saudi represents a large proportion of the market capitalisation in the Middle East and, in offering this range of investment routes, HSBC will enable investors to properly allocate their exposure across the Middle East region for the first time.’

Latest News

News came last night from the US that the SEC has approved CBOE’s proposal to list and trade VanEck’s spot..
Irish domiciled funds surpassed EUR4.3 trillion AuM (Assets under Management) at end-March 2024, a 15 per cent increase in net..
European white label ETF platform, HANetf, has announced its total assets under management (AUM) has now exceeded USD4.31 billion...
New research from European ETF provider Tabula Investment Management shows investors are expecting improvements in ESG from the gold mining..

Related Articles

Timothy Rotolo, Range Funds
In 2023, Timothy Rotolo launched his business, Range Fund Holdings, the parent company for Range Indices and Range ETFs, followed...
Dan Miller, IQ-EQ
With just over a week to go till T+1 settlement begins in North America, Canada and Mexico, time is of...
Emily Spurling, Nasdaq
Last October’s ETF Express US Awards 2023 found Nasdaq winning Best Index Provider – ESG ETFs and Best Index Provider...
Vinit Srivistava, MerQube
Index provider, MerQube, launched in 2019, with the aim of providing a “technology-driven answer to the most complex, rules-based investment...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by