注：ETF简介，来源：日本瑞穗金融集团On December 12th, an ETF that mainly invests in the Saudi stock market was officially listed on the Tokyo Stock Exchange, making it the largest ETF currently listed on the TSE that invests in Saudi Arabia; the Saudi sovereign fund PIF and Japan's Mizuho Financial Group are cornerstone investors; Mizuho stated that it would continue to deepen cooperation with Saudi Arabia in investment financing, Asset Management, and other areas to support Saudi economic transformation.
On December 16th, Financial Association reported (editor Qin Jiahe) that Japan’s Mizuho Financial Group announced on the local time of the 12th that the exchange-traded open-end index fund (ETF) – One ETF FTSE Saudi Arabia Index (295A) was officially listed on the Tokyo Stock Exchange (TSE). The two cornerstone investors of the fund are the Saudi sovereign wealth fund PIF and Mizuho.
The initial Market Cap of the ETF exceeds 15 billion yen (approximately 0.1 billion USD), making it the largest ETF currently listed on the TSE that invests in Saudi Arabia.
Note: Introduction of ETF, source: Japan's Mizuho Financial Group.
The ETF primarily invests in symbols covering large corporations with good local credit, such as bank stocks and the oil giant Saudi Aramco, and is aimed at individual investors who relatively lack international investment experience.
According to previous reports, the minimum investment threshold for this ETF is only several thousand to tens of thousands of yen (equivalent to less than 1,000 USD), making it easier for more investors to participate.
Mizuho stated that the Saudi financial market has undergone significant transformation and rapid growth in recent years. Through this ETF, Mizuho provides Japanese investors with a relatively low-threshold channel to enter this market, which will also promote the connection between Japan and Saudi Arabia's Capital Markets.
This listing coincides with the first Saudi investment forum held in Tokyo, attracting financial institutions and listed companies from Japan and Saudi Arabia to discuss cooperation between the two countries' financial and Capital Markets.
Mizuho stated that it will continue to deepen cooperation with Saudi Arabia in areas like investment and financing, and asset management to support the economic transformation of Saudi Arabia.
Yazeed A. Al-Humied, Vice President and Head of Middle East and North Africa Investments at PIF, pointed out: "Tokyo is a leading global financial center, and for PIF, this ETF provides an important opportunity to establish investment channels and enter the vibrant Capital Markets of Saudi Arabia."
In recent years, Saudi Arabia has actively expanded its investor resources in East Asia and has listed multiple Saudi Stock ETFs in Shanghai, Shenzhen, and Hong Kong.
In April of this year, PIF announced a partnership with Blackrock, the world's largest Asset Management company, and selected the investment platform BRIM in Riyadh according to the agreement, investing 5 billion dollars to attract foreign capital.
Mizuho is the first Japanese private Financial Institution to collaborate with PIF and is actively conducting Business in Saudi Arabia.
Since 2009, Mizuho has been conducting investment banking Business locally through its subsidiary Mizuho Saudi Arabia. Furthermore, according to earlier news this year, Mizuho plans to establish a regional headquarters in Riyadh to comply with the local policy requiring large foreign enterprises to set up regional headquarters locally, and has submitted an application to the Saudi Ministry of Investment.
According to Nikkei, the Saudi stock market ranked eighth globally by Market Cap last year. Nikkei stated that Saudi Arabia is becoming an increasingly attractive investment destination among Emerging Markets.