Hong Kong, Saudi Launch First Sukuk ETF, Deepen Financial Ties

Hong Kong and Saudi Arabia are strengthening their financial ties through expanded cross-border investment opportunities and new financial products, highlighted by the launch of Asia’s first exchange-traded fund (ETF) tracking Saudi government sukuk bonds on the Hong Kong Stock Exchange. The "Premia BOCHK Saudi Arabia Government Sukuk ETF" offers local investors exposure to the world’s second-largest market for Shariah-compliant debt securities, reflecting growing synergy between the two markets. Officials at the Hong Kong-Saudi Capital Markets Forum emphasized plans to approve further products such as sharia-compliant sukuk bonds and real estate investment trusts, aiming to facilitate two-way capital flows and enhance access to Gulf markets. This collaboration aligns with stronger diplomatic relations between Beijing and Riyadh and efforts to attract major listings like Saudi Aramco in Hong Kong. Financial Secretary Paul Chan and other key leaders highlighted the potential beyond equities to bonds, derivatives, and infrastructure investments, while navigating global trade uncertainties. The forum and ongoing initiatives position Hong Kong as a pivotal connector between the Middle East and Asian markets, promoting deeper financial integration amid shifting global economic dynamics.