Hong Kong and Saudi Arabia expand ETF collaboration as economic ties strengthen  

The Saudi Capital Market Forum event is being held in partnership with Hong Kong Exchanges and Clearing. Shutterstock
Short Url
Updated 12 May 2024
Follow

Hong Kong and Saudi Arabia expand ETF collaboration as economic ties strengthen  

RIYADH: Hong Kong is in the process of developing an exchange-traded fund in collaboration with Saudi Arabia, which will track the former’s local stock indices, said a senior official. 

During his address at the Capital Market Forum in Hong Kong, Michael Wong – deputy financial secretary of the administrative region – revealed plans for establishing a trade base in Riyadh. 

This move aims to bolster economic relations not only between Hong Kong and Saudi Arabia but also with mainland China. 

Wong said: “We are working with several financial institutions on the listing of an ETF in the Middle East to track Hong Kong’s stock indices. The Hong Kong government is also considering establishing an economic and trade office in Riyadh.”   




Michael Wong, deputy financial secretary of Hong Kong.

This development comes on the heels of Hong Kong’s November 2023 launch of an ETF that tracks the performance of the Saudi Arabia Index. 

“Just a few weeks ago, the China Securities Regulatory Commission announced a series of measures to further expand mutual access, which will make it even easier for Saudi companies to access Chinese capital,” he added.  

During his speech, Wong disclosed that Cathay Pacific Airways will commence flights from Hong Kong to Riyadh by the end of 2024, reducing flight time to six hours. 

“Cathay Pacific, within a few months time, will relaunch direct passenger flights between Hong Kong and Riyadh. And I have been told that it will happen in the fourth quarter of this year,” noted the deputy financial secretary.  

He added: “The friendship and partnership between Hong Kong and Saudi Arabia will go very far and will endure the test of time.”  

Saudi-Hong Kong ties  




Khalid Al-Hussan, CEO of Saudi Tadawul Group.

Speaking at the opening ceremony of the event, Khalid Al-Hussan, CEO of Saudi Tadawul Group, emphasized that the hosting of the Capital Market Forum in Hong Kong signifies a deepening connection between the two nations. 

Al-Hussan further elaborated that the two-day forum, which commenced on May 9, has drawn together over 1,000 investors, listed companies, and financial pioneers. Their aim is to explore the critical challenges and opportunities that are shaping the contemporary market landscape. 

“This forum is not just a meeting point, but a crucial bridge for investors from Hong Kong and mainland China to connect directly with Saudi issuers. By uniting the two dynamic economies of Saudi Arabia and Hong Kong, we are strengthening financial bonds and synergies between two of the most promising and rapidly evolving markets,” said Al-Hussan.  

He added: “The convergence of Hong Kong’s technological evolution and Saudi Arabia’s economic diversification has set the stage for a fresh era of knowledge sharing and collaboration that extends far beyond capital markets.”  

The CEO of Tadawul Group added that Saudi Arabia’s stock exchange has undergone significant transformations since the launch of Vision 2030. 

He further emphasized the Kingdom’s aspiration for an open market that is fully integrated with the rest of the world. 

“Before Vision 2030, the Saudi capital market was a closed market focused on local issuers as well as serving local investors. Vision 2030 came to the scene with a wider range of goals. Vision 2030 clearly has set goals for the Saudi capital market. We want an open and attractive capital market that is integrated with the rest of the world,” said Al-Hussan.  

He further noted that the average daily trading volume in Saudi Arabia’s stock exchange has doubled over the last two years. 

“The average daily trading this year has almost doubled compared to the average of the last two years, reaching in Q1 around SR9.5 billion which is roughly around $2.3 billion on a daily basis which is a significant liquidity,” added Al-Hussan.  

Abdulaziz bin Hassan, a board member of Saudi Arabia’s Capital Market Authority, highlighted that the Kingdom is undergoing a significant transformation, with its market ranked among the top 10 globally in terms of market capitalization. 

He also noted a surge in initial public offerings within the Kingdom’s market, accompanied by rapid expansion in the asset management sector. 

“Currently, we have an average of around 40 IPOs every year, compared to one or two in the whole year in the past, and that shows the attractiveness of the market,” said Hassan.  

He added, “Our asset management has grown significantly from $100 billion to $130 billion. The number of participants in asset management used to be 250,000, and right now we have more than a million. This growth happened within five years.” 

For her part, Bonnie Y Chan, CEO of Hong Kong Exchanges and Clearing Ltd, remarked that Saudi Arabia’s economic diversification journey is advancing steadily, with the Kingdom’s capital market presenting significant potential for investors. 

She further emphasized the pivotal role of capital markets in bolstering and expanding global connectivity. 

“China and Saudi Arabia are both undergoing fantastic economic transformations that bring toward very interesting opportunities. On the Saudi side, the key thing is the diversification. Instead of focusing on the oil industry, we are seeing fantastic developments in the Kingdom,” noted Chan.  




Bonnie Y Chan, CEO of Hong Kong Exchanges and Clearing Ltd.

Aim for $3.2 trillion capital formation 

During a panel discussion, Saleh Al-Khabti, Saudi Arabia’s deputy minister of investment transactions, revealed that the Kingdom has set a target for fixed capital formation of more than $3 trillion. 

“We have an ambitious plan for Vision 2030. We are at the halfway mark. We are very proud of what we have achieved so far. We have a target for fixed capital formation of $3.2 trillion,” said Al-Khabti.  

The deputy minister added that Saudi Arabia possesses all the elements necessary to capture investor appetite. 

He further observed that inflation in Saudi Arabia remains healthy, and the Kingdom’s banking sector continues to maintain a strong footing with robust credit demand. 

“We have seen more than two years of non-oil sector growth, which is above its long-term average, with non-oil growth reaching 4.4  percent. We had a gross fixed capital formation last year of about $300 billion, and that’s a rise of 70 percent in five years, and equivalent to 28 percent of our GDP,” said Al-Khabti.  

He added: “We have a healthy market and strong economy. Unemployment has fallen from 12 percent to 7.7 percent, while female labor force participation has reached the high twenties, and that’s well ahead of our 2030 targets. So, invest in Saudi and you are welcome.”  

The deputy minister also welcomed Chinese participation in various sectors including automobile, mining, technology and tourism.  

“We welcome more Chinese participation in the automobile sector, EV sector, and its value chain. We are also aiming high on the tourism front. We had a target of 100 million visitors by 2030. The bad news is we reached it last year. So, our colleagues in the tourism sector were given a new stretched target of 150 million visitors by 2030,” added Al-Khabti.


Closing Bell: Saudi main index slightly dips to 11,278; Nomu gains

Updated 6 sec ago
Follow

Closing Bell: Saudi main index slightly dips to 11,278; Nomu gains

RIYADH: Saudi Arabia’s Tadawul All Share Index dropped marginally on Wednesday, shedding 16.34 points or 0.14 percent to close at 11,277.73. 

The total trading turnover of the benchmark index was SR5.48 billion ($1.46 billion), with 140 of the listed stocks advancing and 109 declining. 

The Kingdom’s parallel market Nomu, gained 104.43 points to close at 27,448.22.

The MSCI Tadawul Index edged down by 0.27 percent to 1,445.25.

The best-performing stock on the main market was Umm Al Qura for Development and Construction Co. The firm’s share price increased by 8.62 percent to SR26.70. 

The share price of Saudi Real Estate Co. also rose by 7.68 percent to SR20.89. 

Retal Urban Development Co. also saw its share price advance by 6.62 percent to SR16.10. 

On the announcements front, Alinma Bank said that it completed the issuance of US dollar-denominated sukuk worth $500 million, under its Trust Certificate Issuance Program. 

According to a press statement, the sukuk issue is expected to settle on July 15. 

The share price of Alinma Bank declined by 1.19 percent to SR26.68. 

Jahez International Co. for Information System Technology announced that it has signed an agreement to acquire a 76.56 percent stake in Snoonu Corporation Holding LLC, a Qatari-based technology and logistics firm that operates an e-commerce and on-demand delivery platform. 

In a press statement, the company revealed that it will acquire 8.14 million shares, representing 75 percent of Snoonu’s share capital, from existing shareholders for $225 million. 

Jahez will also subscribe to 723,960 newly issued shares in Snoonu, representing 1.56 percent of the stake, for $20 million. 

The share price of Jahez edged up by 1.11 percent to SR27.44. 


MENA mergers and acquisitions deals rise 149% to record $115.5bn in H1: LSEG

Updated 09 July 2025
Follow

MENA mergers and acquisitions deals rise 149% to record $115.5bn in H1: LSEG

  • Deal volumes climbed 16% year on year, reaching highest level in three years
  • UAE drew $39.8 billion in M&A inflows, followed by Saudi Arabia at $3.5 billion

RIYADH: Mergers and acquisitions in the Middle East and North Africa region reached $115.5 billion in the first half of 2025, marking a 149 percent increase over the same period last year. 

The London Stock Exchange Group said in its latest report that this marks the highest first-half total since it began tracking the data in 1980, highlighting the region’s resilience amid global economic headwinds. 

Deal volumes in the region also climbed 16 percent year on year, reaching the highest level in three years.  

The sharp uptick signals robust investor appetite despite macroeconomic uncertainty and builds on a solid 2024 performance, when MENA M&A deals rose 7 percent to $92.3 billion. 

In February, US-based investment bank Morgan Stanley described the momentum as a “structural upswing” in deal volume and value, driven by regulatory reforms and strategic policy shifts across the region. 

The rise in the Saudi Arabia’s IPO pipeline aligns with broader financial reforms. Shutterstock

“Deals involving a MENA target reached $48.0 billion, 18 percent more than the value recorded last year at this time and a level only exceeded once before, in 2019 when Saudi Aramco acquired a majority stake in SABIC,” LSEG said.   

The analysis revealed that outbound M&A reached $64.5 billion, an all-time first-half record, while the number of outbound deals rose 8 percent. 

The largest deal announced so far this year is Borealis AG’s $30.85 billion acquisition of Borouge PLC in the UAE, which is currently pending completion. 

UAE and Saudi lead activity 

The UAE was the top target country, drawing $39.8 billion in M&A inflows, followed by Saudi Arabia at $3.5 billion.  

Earlier this year, global consulting firm EY said the two countries accounted for 318 M&A deals in 2024, worth $29.6 billion combined, citing improved capital markets, international investor interest, and regulatory liberalization as primary drivers. 

In a sign of continued M&A momentum in Saudi Arabia, the General Authority for Competition approved a record 202 economic concentration requests in January, reflecting the Kingdom’s efforts to strengthen its competitive business environment. 

Economic concentration approvals are required for mergers and acquisitions to ensure they do not create monopolies or disrupt market competition. 

Sectoral breakdown 

The materials sector dominated MENA-targeted M&A activity by value in the first half of the year, accounting for 67 percent of total deal value at $32.1 billion, largely driven by the UAE's ADNOC-OMV merger involving Borouge and Borealis, according to the latest LSEG report. 

The financial sector followed with deals worth $3.3 billion, while the consumer products and services sector recorded $2.9 billion in transactions. The high technology and industrials sectors saw activity totaling $2.6 billion and $2.3 billion, respectively. 

The UAE was the top target country, drawing $39.8 billion in M&A inflows. Shutterstock

M&A in the energy and power sector reached $2.2 billion during the same period. 

London-based financial services group Rothschild led the MENA financial adviser league table for announced M&A deals in the first half, advising on transactions worth a combined $76.1 billion. 

Equity capital markets  

Equity and equity-related issuance in the MENA region totaled $7.6 billion in the first six months of the year, representing a 57 percent decline in value compared to the same period in the previous year.  

Initial public offerings accounted for 59 percent of the total, while follow-on issuances made up the remaining 41 percent. 

A total of 25 IPOs were recorded — two more than during the same period in 2024 — marking the highest such tally since 2008. 
Collectively, these IPOs raised $4.5 billion, representing a 25 percent rise compared to the previous year.  

“Low-cost airline flynas raised $1.1 billion in its stock market debut on Saudi Arabia’s main Tadawul exchange in May, the largest IPO in the region so far this year,” said LSEG.  

A June report by Forbes Middle East said that Saudi Arabia’s equity capital market maintained strong momentum in the first half, with six companies raising a combined $2.8 billion through initial public offerings on Tadawul. 

The rise in the Kingdom’s IPO pipeline aligns with broader financial reforms, as the Capital Market Authority has introduced new frameworks, including regulations for special purpose acquisition companies, to expand funding avenues and enhance private sector participation. 

The LSEG report said proceeds raised from follow-on offerings reached $3.1 billion during the first quarter, largely boosted by Abu Dhabi's ADNOC Gas’s $2.8 billion share sale in February. 

The energy and power sector led activity, with issuers raising a combined $2.8 billion, accounting for 38 percent of total equity capital raised in the region, followed by the real estate sector at 20 percent. 

HSBC topped the MENA equity capital markets underwriting league table for the first half, with a 15 percent market share, followed by EFG Hermes at 11 percent. 

Low-cost airline flynas raised $1.1 billion in its stock market debut on Saudi Arabia’s main Tadawul exchange in May. Shutterstock

Debt capital markets  

MENA bond issuance totaled $86.8 billion in the first half, representing a 17 percent increase over the same period last year and marking the highest first-half total since 1980. 

The number of bond issues also rose 17 percent year on year, surpassing all previous first-half records. 

Saudi Arabia was the most active issuer, accounting for 52 percent of total bond proceeds, followed by the UAE at 25 percent, and Qatar at 8 percent.

Earlier this month, a report by S&P Global said Saudi Arabia’s domestic corporate bond and sukuk markets are poised for further growth, driven by Vision 2030 investments and ongoing regulatory reforms. 

In April, Fitch Ratings reported that Saudi Arabia’s debt capital market reached $465.8 billion by the end of March, a 16 percent year-on-year increase, with sukuk making up 60.4 percent of the total. 

The Kingdom’s debt market is expected to surpass $500 billion in outstanding value by the end of 2025, supported by strong economic fundamentals, diversified funding strategies, and continued progress under Vision 2030. 

LSEG also said Islamic bonds in the region raised $32.2 billion in the first half — an all-time record for the period — representing a 14 percent increase over last year. 

Sukuk accounted for 37 percent of total bond proceeds raised in the region, slightly down from 38 percent during the same period in 2024. 

The materials sector dominated MENA-targeted M&A activity by value in the first half of the year, largely driven by the UAE’s ADNOC-OMV merger involving Borouge and Borealis. Shutterstock

HSBC led the MENA bond bookrunner rankings, handling $8.9 billion in proceeds, or a 10 percent market share in the first half. 

Investment banking fees 

LSEG estimated that $773.7 million in investment banking fees were generated in the MENA region, a 2 percent decline from the same period in 2024, but still the third-highest first-half total since 2000. 

Debt capital markets underwriting fees rose 20 percent year on year to $278.9 million in the first six months. 

However, equity market underwriting fees dropped to a two-year low of $169.9 million, reflecting an 18 percent year-on-year decline. 

“Advisory fees earned from completed M&A transactions totalled $191 million, 52 percent more than the value registered last year at this time and the highest first-half total since 2022,” said LSEG.

According to the report, Saudi Arabia accounted for 41 percent of all MENA investment banking fees, followed by the UAE at 35 percent, and Qatar at 7 percent. 

HSBC earned the most investment banking fees in the region, collecting $64 million, or an 8 percent share of the total fee pool. 


Saudi POS spending up 5% in early July driven by hotel sector

Updated 41 min 13 sec ago
Follow

Saudi POS spending up 5% in early July driven by hotel sector

  • Hotels led the growth, up 22.7% to SR260.74 million
  • Telecommunication division recorded 9.8% increase in transaction value to SR136.09 million

RIYADH: Saudi Arabia’s point-of-sale transactions climbed 5 percent to SR14.3 billion ($3.81 billion) in the week ending July 5, driven by increased spending across multiple sectors.

The latest data from the Kingdom’s central bank, also known as SAMA, showed that hotels led the growth, registering the largest jump in transaction value, up 22.7 percent to SR260.74 million. 

The sector also saw an 18 percent rise in the number of transactions, reaching 802 million.

According to SAMA’s bulletin, the telecommunication division followed, recording a 9.8 percent increase in transaction value to SR136.09 million.

Public utilities spending ranked next, rising 8.8 percent to SR56.92 million, with transactions up 7.2 percent to 740 million.

Food and beverages — responsible for the largest share of total POS value among the defined categories — recorded a 6.9 percent increase to SR2.13 billion.

Transportation spending rose 4.1 percent to SR776.28 million, while restaurants and cafes saw a 3.5 percent increase, totaling SR1.95 billion and claiming the second-biggest share of this week’s POS.

Miscellaneous goods and services claimed the third-largest share of the total transaction value, with an uptick of 8.6 percent to SR1.79 billion.

The smallest spending gains were in gas stations, rising by 1.1 percent to SR974.03 million, and electronics, which increased by 3 percent to SR187.56 million.

The health and furniture sectors also saw upward changes, increasing by 3.7 percent and 8 percent to reach SR871.34 million and SR289.99 million, respectively. 

On the downside, spending on education dipped by 33.5 percent to SR141.12 million, followed by a 6 percent decrease in spending on jewelry.

Recreation and culture followed the trend, falling 2.3 percent to SR287.79 million.

Geographically, Riyadh dominated POS transactions, with expenses in the capital reaching SR4.87 billion, a 3.9 percent increase from the previous week. 

Jeddah followed with a 6.8 percent rise to SR2.06 billion, while Dammam ranked third, up 1 percent to SR680.17 million.

Tabuk saw the smallest increase, inching up 0.1 percent to SR278.76 million, followed by Khobar with a 0.5 percent uptick to SR387.48 million.

Hail recorded 4.21 million deals in transaction volume, up 6.4 percent, while Makkah reached 8.9 million transactions, rising 8.8 percent.


Saudi Arabia’s FII conference organizer plans IPO: report

Updated 09 July 2025
Follow

Saudi Arabia’s FII conference organizer plans IPO: report

  • RA&A working with banks to prepare for possible listing by next year
  • Richard Attias would remain shareholder after any potential transaction and stay on as chairman

RIYADH: Richard Attias and Associates, the organizer of Saudi Arabia’s Future Investment Initiative summit, is planning for a potential initial public offering, according to a report. 

Founder and Chairman of RA&A Richard Attias told Bloomberg in an emailed response that the events and advisory firm is currently working with banks, including Evercore Inc., to prepare for a possible listing as soon as next year. 

FII is widely considered as one of the flagship investment events in the Kingdom, where world leaders and industry experts gather to discuss opportunities and challenges across the global financial landscape.

Attias has been a prominent speaker at FII events, where Saudi Arabia showcases its Vision 2030 ambitions to position itself as an international business destination by the end of the decade. 

Citing Attias, Bloomberg reported that “he would still remain a shareholder after any potential transaction and stay on as chairman of the board. No final decisions have been made.”

Participants attend the annual Future Investment Initiative conference in Riyadh on Oct. 29, 2024. AFP

Sanabil, the investment arm of the Kingdom’s Public Investment Fund, currently owns about 75 percent of RA&A, while Attias possesses the remaining stake. 

He is currently the chairman of the executive committee at the FII institute, a non-profit run by Saudi Arabia’s sovereign wealth fund. 

In February, the FII Institute hosted its Priority Summit in Miami, which featured an address from US President Donald Trump. 

Trump’s keynote speech underscored the need for strategic investments that generate both financial returns and long-term social impact. 

“Today, it is a tremendous honor to become the first American president to address the Future Investment Initiative Institute,” said Trump at the event. 

US President Donald Trump speaks at FII PRIORITY Miami 2025 Summit at the Faena Hotel and Forum in Miami Beach, Florida, Feb. 19, 2025. AFP

He added: “I come today with a simple message for business leaders from all across the nation and all around the world. If you want to build the future, push boundaries, unleash breakthroughs, transform industries, and make a fortune.” 

The eighth edition of FII, held in Riyadh last year, featured over 500 speakers and facilitated more than 200 sessions, including plenary discussions, breakouts, and conclaves, addressing economic stability, geopolitical tensions, and equitable development.

Since its launch in 2017, the FII Institute has been organizing annual events in Riyadh. Over the years, the program has emerged as one of the flagship conferences in the financial sector.

Founded in 2008, RA&A currently employs over 100 people worldwide, providing ideas, connections, and platforms to guide its clients, which include corporations, governments, NGOs, and nonprofits, according to its LinkedIn profile. 


Iraq nears completion of Grand Faw Port, launches $600m Baghdad airport tender

Updated 09 July 2025
Follow

Iraq nears completion of Grand Faw Port, launches $600m Baghdad airport tender

  • Work on the flagship port project has reached key milestones
  • The $400–600 million airport investment will be fully privately financed

RIYADH: Iraq’s transport landscape is set for a major upgrade as it nears completion of its Grand Faw Port and launches a $600 million tender to redevelop Baghdad Airport through private investment. 

The Ministry of Transport said in a statement that work on the flagship port project has reached key milestones, despite ongoing challenges. 

The progress on these infrastructure projects aligns with Iraq Vision 2030, which aims to diversify the economy, reduce oil dependency, and boost non-oil sectors like logistics and tourism for long-term growth. 

Farhan Al-Fartousi, director general of the General Co. for Ports of Iraq, said that dredging work on the port’s navigation channel is 92 percent complete, while the container yard has reached 94 percent completion. The 63-km access road connecting the port to the national highway network is also finished. 

“The submerged tunnel project is going according to what is planned, as the third piece has been successfully completed, and the engineering teams are preparing to start the process of bringing the fourth piece in the coming days, after completing all the necessary technical and logistical recalls,” the release said, citing Al-Fartousi.

The tunnel comprises 10 segments, stretching 2,444 meters in total, with 1,226 meters submerged underwater. 

Iraq’s Vision 2030 prioritizes modernizing transport networks, enhancing regional connectivity, and leveraging public-private partnerships. File/AFP

The ministry is finalizing operational procedures for the port, which will soon be submitted to the Cabinet for approval. Once approved, 11 leading global port operators will compete for the management contract. 

The ministry said that Container Terminal No. 1 will meet high technical specifications and be operated by a world-class firm, ensuring the port’s success as a strategic regional hub. 

The transport ministry also unveiled plans for a public-private partnership to modernize Baghdad International Airport, in collaboration with the International Finance Corp., a World Bank affiliate. 

The government has opted for a public-private partnership model to overcome budget constraints and alleviate fiscal pressures, according to a separate ministry statement. 

The approach also aims to leverage private-sector expertise to accelerate infrastructure development, improve service quality, and create jobs while driving economic growth. 

“This initiative aligns with a broader development strategy and does not entail relinquishing the state’s sovereign role. Rather, it aims to enhance operational efficiency and ensure the delivery of safe, high-quality services to travelers,” the statement said. 

The IFC, serving as a non-profit adviser, is supporting Iraq in conducting feasibility studies and organizing a transparent international tender for the project. 

Under the agreement, the government will retain control over sovereign functions such as immigration, customs, air traffic control, and fuel storage. The private operator will be responsible for terminal operations, security screening, infrastructure upgrades, logistics systems, ground handling, and air cargo services. 

The $400–600 million investment will be fully privately financed, with the airport initially accommodating 9 million passengers annually before expanding to 15 million. Bidding closes in September, and the selected operator will share annual gross revenue with the government. The project is expected to generate at least 12,000 new direct jobs, the statement said. 

The progress on Iraq’s Grand Faw Port and Baghdad Airport redevelopment aligns with the broader goals outlined in the country’s Vision 2030, which emphasizes infrastructure development as a pillar of economic diversification and private-sector growth. 

The vision, spearheaded by the Ministry of Planning, prioritizes modernizing transport networks, enhancing regional connectivity, and leveraging public-private partnerships to overcome fiscal constraints, mirroring the airport project’s model. 

The vision’s “Diversified Economy” pillar calls for advanced infrastructure to stimulate trade and job creation, while its governance reforms stress transparency in tenders, as seen in the IFC-backed airport bid.