GTN Group and SBI Group collaborate to launch “SBI Saudi Arabia Equity Exchange Traded Fund”

GTN Group and SBI Holdings have announced the launch of the “SBI Saudi Arabia Equity Exchange Traded Fund (ETF)”—a groundbreaking ETF dedicated to investing in the Saudi Arabian stock market and listed on the Tokyo Stock Exchange. This fund marks a significant milestone as it represents the first ETF focusing exclusively on Saudi equities to be accessible to Japanese investors.

The collaboration between GTN, a leading Middle Eastern institutional broker, and SBI Holdings, a major Japanese financial conglomerate, stems from a Memorandum of Understanding (MOU) signed in May 2024 in Tokyo at the Saudi Japan Vision 2030 Event in the presence of H.E. Eng. Khalid bin Abdulaziz Al-Falih the Minister of Investment.

Inspired by Vision 2030, the ETF is expected to reflect the performance of the Saudi market and attract Japanese investors due to Saudi Arabia’s significant economic transformation, sustainable growth, and advanced financial infrastructure. The ETF will be managed to achieve investment results linked to the “MSCI Saudi Arabia Index (yen equivalent basis).  SBI Asset Management received the regulator’s approval, and the ETF was successfully listed on the Tokyo Stock Exchange on 31st October 2024.

As per the MOU signed between the parties, SBI Asset Management will be responsible for creating, managing and promoting the ETF in Japan, while GTN will provide research, execution, clearing and settlement services to the ETF.

SBI Group is a strategic investor of GTN and a key partner in GTN’s expansion plans in Asia.

The Chairman of GTN and its mother company NTG, Mohammed Rashid Al Ballaa said “we are excited about the collaboration between SBI and GTN to launch the first ever Saudi-focused ETF in Japan.  SBI Group has access to over 10 million customers and is ideally suited to promote an ETF linked to the Saudi market in Japan.  This milestone was achieved thanks to Mr. Yoshitaka Kitao, the visionary leader and founder of SBI Group”.  The ongoing support of the Saudi Stock Exchange and the Ministry of Investment in Saudi Arabia were also essential success factors in reaching this milestone, said Mr. Al Ballaa.

At the FII conference in Riyadh, Mr. Yoshitaka Kitao said, “I am excited to be in the Kingdom and see the development that has taken place over the past few years.  I am also excited to see the unfolding of the Vision 2030.  I am confident that the Saudi Arabia ETF will provide Japanese investors the opportunity to participate and be part of the growth journey of Saudi Arabia.”