Saudi Arabia’s Public Investment Fund (PIF) and State Street Investment Management have announced the launch of a new exchange-traded fund (ETF), with the Saudi sovereign wealth fund acting as the anchor investor. The fund, named the State Street Saudi Arabia Enhanced Active Equity UCITS ETF (Ticker: SAQL), is designed to provide investors in European markets direct access to investment opportunities in the Saudi stock market.
Quick Facts
- PIF is the anchor investor in the new fund.
- The ETF offers European investors access to Saudi equities.
- The fund is listed in Germany and the UK.
A Strategic Push to Deepen Capital Markets
The launch of the SAQL fund is a significant move in PIF’s ongoing strategy to enhance the depth and diversity of the Saudi capital market. By partnering with global asset managers like State Street, PIF aims to attract more international capital, broaden financing options for the private sector, and introduce innovative financial products.
This new ETF has its primary listing on the Xetra exchange in Germany and is cross-listed on the London Stock Exchange. This is the second State Street ETF anchored by PIF and marks the fifth such investment for the fund with global asset managers, covering nine international markets.
Yazeed Al-Humied, Deputy Governor and Head of MENA Investments at PIF, commented, “PIF is further strengthening Saudi Arabia’s capital market ecosystem, working with our partners to open gateways for international investors, enable access and drive global capital inflow into the country. Our continued partnership with State Street IM reinforces a shared commitment to enhance and diversify the product range, to present new opportunities for international investors into the Saudi market and unlock capital pools.”
Yie-Hsin Hung, Chief Executive Officer of State Street Investment Management, added, “We’re thrilled to continue our partnership with PIF by bringing another innovative Saudi-focused ETF product to market for our European clients. Saudi Arabia’s success story in recent years speaks for itself – with the combination of a rapidly expanding domestic market and a supportive regulatory landscape creating a truly compelling prospect for investors around the world.”
A Quantitative Approach for a Maturing Market
The SAQL fund actively invests in equities of Saudi companies using a quantitative multi-factor stock selection model. This data-driven approach, which relies on mathematical modeling and algorithms, is now viable due to the maturation of the Kingdom’s market structure and the improved quality of available data.
The fund offers international investors a systematic, active method to gain exposure to one of the G20’s most rapidly transforming economies. It is registered for sale across Europe, including in Austria, Denmark, France, Germany, Italy, Spain, Sweden, and the UK.
About PIF
The Public Investment Fund (PIF) is one of the largest and most impactful sovereign wealth funds in the world. Since 2015, when its Board was reconstituted and oversight transferred to the Council of Economic and Development Affairs, PIF has led a strategic transformation, becoming a key driver of Saudi Arabia’s economic diversification and a global investment powerhouse.
About State Street Investment Management
State Street Investment Management is the asset management arm of State Street Corporation. With a history of innovation in indexing and ETFs, the firm manages over $5 trillion in assets for clients in more than 60 countries, offering a comprehensive suite of investment solutions.
Source: Zawya
