Hong Kong and Saudi Arabia are teaming up to create an ETF that will follow local stock indices, with the goal of strengthening economic ties between the two countries. The Hong Kong government is even mulling over the idea of setting up an economic and trade office in Riyadh.
In a move that builds on Hong Kong’s ETF launch for the Saudi Arabia Index in November 2023, Cathay Pacific Airways is set to kick off flights from Hong Kong to Riyadh by the end of 2024, slashing travel time to just six hours. Additionally, Cathay Pacific will reintroduce direct passenger flights between Hong Kong and Riyadh in the fourth quarter of this year.
The Capital Market Forum in Hong Kong serves as a testament to the growing relationship between the two nations, with more than 1,000 investors, listed companies, and financial leaders coming together to discuss the challenges and opportunities that are shaping today’s market landscape. Since the inception of Vision 2030, Saudi Arabia’s stock exchange has seen significant changes, propelling its market capitalization to rank among the top 10 globally. Bonnie Y Chan, CEO of Hong Kong Exchanges and Clearing Ltd, highlighted the country’s journey towards economic diversification and the promising prospects for investors in the capital market.
Michael Wong, Hong Kong’s Deputy Financial Secretary, revealed talks about launching an ETF to track regional indices, hinting at exciting investment prospects. The Saudi Tadawul Group’s inaugural Capital Markets Forum in Hong Kong unveiled an ETF that mirrors Hong Kong’s key stock index, which will be available for trading on the Tadawul stock exchange in Riyadh once it’s ready.
Discussions are also underway for an investment promotion and protection agreement between Hong Kong and Saudi Arabia.
