Gulf Investment Surge: Hong Kong-listed Saudi ETFs Reaching New Heights
Unprecedented growth in Saudi ETFs listed in Hong Kong; GCC investor interest skyrockets, fostering cross-border financial collaboration.
In recent years, Hong Kong Exchanges and Clearing (HKEX) has witnessed a transformative shift in its investment landscape. Gregory Yu, Head of Markets at HKEX, heralds this change as cross-border investments between Hong Kong and the Gulf Cooperation Council (GCC) surge. This dramatic growth was spotlighted by the 2023 listing of a Saudi exchange-traded fund (ETF), which now boasts over $1.3 billion in assets under management.
A Pivotal Milestone
According to أرقام, the Saudi ETF has become an exemplar of success, attracting widespread interest not only from Asian investors but also from GCC stakeholders. This burgeoning interest is not just about numbers; it’s a story of increasing integration between the financial markets of Hong Kong and the Gulf.
New Saudi Sukuk Fund: A Sign of Times
With HKEX’s launch of a new Saudi sukuk fund, the message is clear: there is an expanding appetite for Saudi financial instruments in Hong Kong. This is further evidence of the active engagement of Saudi and GCC investors, contributing to a “two-way flow” of financial products and equities.
Bridging China and The GCC
HKEX stands at a strategic intersection, acting as a bridge between China and global markets, particularly those in the GCC. This role has been underscored by a significant uptick in initial public offerings (IPOs) this year, amassing proceeds exceeding $10 billion—a testament to HKEX’s prominence on the global stage.
The Tech and Renewable Energy Boom
The interests of GCC investors are mirrored in sectors like technology and renewable energy—key pillars of Saudi Vision 2030. This alignment is supported by regulatory reforms in Hong Kong, like Chapter 18C, which facilitates innovative business listings.
The Road Ahead
HKEX is in proactive discussions with several Saudi companies regarding potential listings. The exchange has observed robust inflows from institutional investors outside Asia, with a notable influx from the GCC, particularly into Chinese equities and ETFs.
Cementing Relationships
Middle Eastern investors have been pivotal in recent IPO success stories, reinforcing the symbiotic relationship between Hong Kong and Gulf financial markets. As articulated by Yu, this emerging trend of cross-border investment is not only transforming local landscapes but also weaving a new tapestry of global financial interconnectivity.
The year 2025 marks a promising era in which the economic corridors between Hong Kong and the GCC are more vibrant and robust than ever, fostering a collaborative future in global finance.