State Street Global Advisors, the asset management division of State Street Corporation, announced this week that it has launched the SPDR J.P. Morgan Saudi Arabia Aggregate Bond UCITS ETF (KSAB).
State Street Global Advisors Announces Saudi Bond ETF in Europe
The ETF provides European investors with access to Saudi Arabia’s burgeoning bond market.
Listed on the Xetra and London Stock Exchange, the fund aims to track the newly developed J.P. Morgan Saudi Arabia Aggregate Index.
The index, created in collaboration with State Street Global Advisors, captures the performance of liquid USD- and SAR-denominated government and quasi-government bonds, including Sukuks.
Emmanuel Laurina, Head of Middle East, Africa and Official Institutions at State Street Global Advisors, stated: “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.
He added that as the Kingdom continues to diversify its economy through energy transition, infrastructure and other growth initiatives, they believe there are “appealing investment themes for international investors to capture through a diversified exposure to Saudi bonds.”
Saudi Arabia’s bond market has experienced significant growth, driven by its Vision 2030 economic transformation agenda.
The total value of outstanding bonds from Gulf Cooperation Council (GCC) countries has surged, more than tripling since 2019 to nearly $1.35 trillion by September 2024.
Available in multiple European countries, including Austria, Denmark, France, Finland, Germany, Italy, Luxembourg, Netherlands, Norway, Spain, Sweden, and the UK, the KSAB ETF marks an opportunity for investors seeking diversified exposure to Saudi Arabia’s fixed-income landscape.
