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

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
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Updated 12 May 2024
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Hong Kong and Saudi Arabia expand ETF collaboration as economic ties strengthen  

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.


Saudi wealth fund’s SURJ Sports Investment acquires minority stake in DAZN

Saudi wealth fund’s SURJ Sports Investment acquires minority stake in DAZN
Updated 17 February 2025
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Saudi wealth fund’s SURJ Sports Investment acquires minority stake in DAZN

Saudi wealth fund’s SURJ Sports Investment acquires minority stake in DAZN

RIYADH: SURJ Sports Investment, the sports arm of the Public Investment Fund, has acquired a minority stake in DAZN to broaden broadcasting opportunities and enhance access to both live and on-demand sports content.

This strategic investment aims to support the growth of Saudi Arabia’s sports sector while bolstering DAZN’s presence in the Middle East and other key markets, according to an official statement released on Monday.

As part of the deal, SURJ and DAZN will launch DAZN MENA, a joint venture designed to elevate sports broadcasting capabilities across Saudi Arabia and surrounding markets.

“This investment is in line with SURJ’s mission to drive fan engagement, boost sports participation, and unlock transformative opportunities, all while positioning the region as a hub for world-class sports,” said Danny Townsend, CEO of SURJ Sports Investment.

The collaboration is set to accelerate the growth of the broader sports sector by enhancing fan engagement and supporting initiatives that encourage sports participation.

“As part of the DAZN MENA joint venture with SURJ, DAZN is committed to expanding sports access and delivering an unparalleled entertainment experience to a global community of passionate fans,” added Shay Segev, CEO of DAZN.

Earlier in January, SURJ entered into a strategic partnership with US-based Enfield Investment Partners. This collaboration is focused on co-investing in global sports properties, including teams, leagues, media rights, and infrastructure. Enfield launched a $4 billion global sports asset fund and will establish a presence in SURJ’s Riyadh offices to support mutual growth and objectives.

Founded in 2023, SURJ Sports Investment is dedicated to international sports investments and advancing Saudi Arabia’s sports ecosystem. Its strategy encompasses investments in broadcasting, digital platforms, grassroots initiatives, and fan engagement.

Through this partnership, DAZN will serve as a key streaming and broadcasting partner for Saudi sports, significantly expanding their reach to a global audience. Operating in over 200 markets, DAZN has built a platform that integrates live sports streaming with interactive digital experiences.

The agreement with SURJ is expected to usher in new broadcasting technologies and further expand the accessibility of sports media in the region.


Saudi Arabia unveils $7.7bn mining investments in Wa’ad Al-Shamal

Saudi Arabia unveils $7.7bn mining investments in Wa’ad Al-Shamal
Updated 17 February 2025
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Saudi Arabia unveils $7.7bn mining investments in Wa’ad Al-Shamal

Saudi Arabia unveils $7.7bn mining investments in Wa’ad Al-Shamal

RIYADH: Saudi Arabia’s mining sector is poised for a major boost with nearly SR29 billion ($7.7 billion) in investments being directed toward the city of Wa’ad Al-Shamal.

Prince Faisal bin Abdulaziz, governor of the Northern Borders region, inaugurated a series of industrial, developmental, and hospitality projects aimed at solidifying the city’s role as a major hub for the Kingdom’s mining industry.

A major highlight of the announcement was the launch of Ma’aden’s Phosphate 3 project, backed by the Shareek program and an investment of SR28 billion.

This initiative is set to increase Saudi Arabia’s phosphate production capacity to 9 million tonnes annually, building upon the existing Phosphate 1 and Phosphate 2 projects, each producing 3 million tonnes. This expansion is expected to bolster the country’s industrial supply chain, generate new investment opportunities, and create employment within the sector.

The governor emphasized that these projects align with Saudi Vision 2030, which aims to expand the mining sector’s contribution to the national economy.

He highlighted that Wa’ad Al-Shamal has transformed into a model for integrated industrial cities, combining major industries, logistics services, and modern residential communities, which enhance its appeal to both local and international investors.

The event was attended by Minister of Industry and Mineral Resources Bandar Alkhorayef, Deputy Minister for Mining Affairs Khalid Al-Mudaifer, and other key officials from both the public and private sectors.

Additionally, the Saudi Authority for Industrial Cities and Technology Zones launched several new industrial, logistical, and service projects, with investments exceeding SR550 million. These projects include infrastructure development in the industrial zone, which spans 4.3 million sq. meters. As part of this initiative, 32 ready-built units have been established, consisting of 20 pre-built factories and 12 support units covering a combined area of 45,000 sq. meters.

Further key developments include a 132 kilovolt, 200 megavolt-amperes power substation, overhead transmission lines, and a 7-km bridge connecting the industrial zone to the international highway. These projects aim to improve logistics and energy reliability, creating an attractive environment for investments, particularly in the phosphate industry.

In addition, the governor inaugurated the expansion of Ma’aden’s residential city in Wa’ad Al-Shamal, adding 96 new residential units. This brings the total number of housing units to 579, supporting industrial and mining sector employees and their families.

To complement the region's infrastructure improvements, the Movenpick Wa’ad Al-Shamal Hotel, developed with an investment exceeding SR500 million, was officially opened. The five-star hotel is designed to cater to the growing accommodation demand from workers, investors, and visitors to the industrial city and Northern Borders region, further enhancing Wa’ad Al-Shamal’s position as an integrated industrial and investment hub.

As part of broader efforts to advance the mining sector, Alkhorayef, along with the deputy minister for mining affairs and other officials, visited several industrial and developmental projects in Wa’ad Al-Shamal and the Northern Borders region.

The tour included a visit to the Scientific Excellence School in Arar, where the minister reviewed modern training laboratories and met with students and faculty. Established through a partnership between Ma’aden and the Ministry of Education with an investment of approximately SR180 million, the initiative seeks to promote scientific education and develop expertise in STEM fields.

The minister also toured the Saudi Technical Institute for Mining in Arar, which has trained over 1,081 students, including 52 female graduates, in a range of specializations such as underground and surface mining, mining operations, and mechanical and electrical maintenance. Equipped with advanced mining simulation and training facilities, the institute plays a pivotal role in workforce localization and preparing Saudi talent for the mining industry.

The tour also included a visit to the Hazm Al-Jalamid mine, one of the Kingdom’s key phosphate mining sites, producing more than 11 million tonnes of phosphate ore annually.

The Northern Borders region is home to extensive mineral resources valued at approximately SR4.669 trillion.

It is a major source of phosphate, a critical element in global food security due to its role in agricultural fertilizer production. The region also contains high-quality deposits of coal, dolomite, limestone, and silica sand. It currently holds five phosphate ore reserve sites and 29 active mining licenses, including 15 for building materials and 14 for mineral extraction.


Big 5 Construct forum fuels Saudi Arabia’s $1.7tn projects’ pipeline 

Big 5 Construct forum fuels Saudi Arabia’s $1.7tn projects’ pipeline 
Updated 17 February 2025
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Big 5 Construct forum fuels Saudi Arabia’s $1.7tn projects’ pipeline 

Big 5 Construct forum fuels Saudi Arabia’s $1.7tn projects’ pipeline 
  • Two-week event showcases industry-leading discussions, strategic deals and innovative technologies, showcases key innovations
  • Masdar signs partnership with Public Investment Fund; PIF acquires a 30% stake in Masdar

RIYADH: Big 5 Construct Saudi 2025 returned for its 13th edition in a groundbreaking two-week format, running from Feb. 15— 18 and 24— 27 at the Roshn Front in Riyadh.

The expansion aligns with the Kingdom’s construction boom, driven by Vision 2030 and a $1.7 trillion pipeline of mega and giga-projects. 

The event was inaugurated by Mohammed Abdulaziz Al-Ajlan, chairman of the Saudi Contractors Authority, with the new two-week format designed to meet the increasing market demand and sector-specific growth opportunities within the Kingdom’s construction industry.

In its first week, Big 5 Construct Saudi hosted the 5th edition of the International Contracting Conference, organized by the SCA and dmg events, bringing together senior government officials, industry leaders and experts to discuss the future of construction in the Kingdom

In his keynote speech at the ICC, Al-Ajlan said the event “serves as an important platform for thought leadership and strategic discussions” that will shape the future of the construction industry as Saudi Arabia accelerates toward its Vision 2030 goals. 

He added: “As a testament to the Kingdom’s leadership in construction excellence, Big 5 Construct Saudi complements our mission at the SCA to empower stakeholders, drive sustainability, and champion advancements that will propel the sector to new heights.”

Industry leaders participated in discussions on advancing sustainability and environmental, social and governance goals in Saudi Arabia. Sinan Rasheed, director of sustainability at New Murabba, highlighted the critical role of transparency and accountability through robust ESG reporting and compliance frameworks.

In its first week, the forum welcomed professionals from across the industry to explore innovations in the foundational stages of construction, spanning structural development, materials and engineering solutions, with co-located events including Heavy Saudi Arabia, Totally Concrete Saudi Arabia, and HVAC R Saudi Arabia.

“As we opened the doors to this year’s Big 5 Construct Saudi, construction industry professionals are gathering to explore key sectors such as heavy construction, concrete, HVAC, MEP technologies and building materials in the first week of the event, ” said Matt Denton, president at dmg events.

“The expanded two-week format not only enhances the attendee experience but also ensures that professionals can find the tools and technologies they need, representing every segment of the construction value chain. The first week specifically focuses on products and solutions for projects in the foundation to ground-up stages, aligning perfectly with the Kingdom’s growing construction demands,” he added.

On the sidelines of Big 5 Construct Saudi, Masdar signed a partnership with the Public Investment Fund, not long after PIF acquired a 30 percent stake in the building and construction materials company by subscribing to new shares via a capital increase.

According to Masdar, the strategic partnership strengthens the company’s position in the sector and drives growth to contribute to Vision 2030.

Faisal Majid Al-Muhaidib, CEO of Masdar, told Arab News: “We are a leading building material company, active in 29 cities in Saudi Arabia with 105 branches. Last week we announced that PIF has invested 30 percent in Masdar shares. So today they are our partners. This is a very big leap for Masdar.”

Al-Muhaidib said PIF has invested in the company as it seeks to localize the supply chain within Saudi Arabia, enhance the customer experience while shopping for building materials, and accelerate growth within the sector in the Kingdom.

He said: “We strongly believe that today we are living in the golden age of the construction industry in Saudi Arabia. We have wise leadership, a clear vision and a very supportive government. Saudi Arabia has always been a place of stability within the region. We are very much optimistic about the future.”

The CEO said in 2024 the building material sector size was around SR380 billion ($101.32 billion), and it is expected to reach SR500 billion by 2030.

“With works in progress for several mega projects, major sporting events and oil and gas there, we see many sectors open within Saudi Arabia for the building and construction material,” Al-Muhaidib said.

Abdulmajid Al-Rashoudi, governor of the SCA, described the construction sector as standing “at the heart of the Kingdom’s Vision 2030”.

He added: “At the SCA, we are committed to building an ecosystem that drives innovation, strengthens local capabilities, and attracts global expertise. 

“Our ongoing partnership with Big 5 Construct Saudi, the largest construction event in Saudi Arabia, is a testament to this vision. 

“It provides a world-class platform that connects public and private sector leaders and industry experts, showcases cutting-edge solutions, and accelerates knowledge exchange, thus playing a significant role in building a future-ready construction sector.”

Over 2,000 exhibitors from more than 60 countries are expected at Big 5 Construct Saudi across the two weeks, showcasing the latest products, services, systems and solutions.

As part of the EcoTrail feature on the opening day, one of the exhibitors, Dewalt, demonstrated its battery-powered tools that reduce carbon emissions by up to 60 percent.

Another exhibitor, LumiCon by Brickeye, presented real-time Internet of Things-based concrete strength monitoring which eliminates excess material waste and improves efficiency.


UAE, Ukraine sign comprehensive economic partnership deal

UAE, Ukraine sign comprehensive economic partnership deal
Updated 17 February 2025
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UAE, Ukraine sign comprehensive economic partnership deal

UAE, Ukraine sign comprehensive economic partnership deal

JEDDAH: The UAE and Ukraine have signed a Comprehensive Economic Partnership Agreement, removing customs duties on 99 percent of Emirati goods and 97 percent of Ukrainian exports to boost trade and investment. 

The agreement aims to unlock new trade and investment opportunities, fostering deeper economic ties between the countries, reported the Emirates News Agency. 

The signing ceremony was attended by UAE President Sheikh Mohamed bin Zayed Al-Nahyan and Ukrainian President Volodymyr Zelenskyy, marking a major step in enhancing bilateral economic cooperation. 

This follows the UAE’s signing of CEPAs since 2021 with countries like India, Indonesia, Turkiye, Israel, Malaysia, Jordan, and Morocco to boost trade, attract investments, and protect exports and intellectual property. 

The UAE president emphasized the strategic importance of the CEPA, highlighting its role in boosting bilateral trade and advancing both nations' economic ambitions. He expressed confidence that the agreement would strengthen economic relations and contribute to sustainable development. 

Zelenskyy echoed these sentiments, emphasizing that the agreement would benefit both Ukraine and the UAE, expanding economic cooperation and providing new opportunities for growth. 

The CEPA agreement was signed in a formal ceremony at Qasr Al-Shati by UAE Minister of State for Foreign Trade Thani bin Ahmed Al-Zeyoudi and Ukraine’s First Deputy Prime Minister and Minister of Economy Yulia Svyrydenko. 

The deal is projected to contribute $369 million to the UAE’s gross domestic product and $874 million to Ukraine’s by 2031. It is also expected to accelerate Ukraine’s economic recovery and create new opportunities in sectors such as infrastructure, heavy industry, and aviation, as well as aerospace, and information technology, according to WAM. 

The deal was signed after the two countries expressed their intent to negotiate a CEPA in December 2022, following over $3 billion in trade and investment commitments made during Zelenskyy’s visit to the UAE in February 2021.

Bilateral trade between the UAE and Ukraine totaled $372.4 million in 2024, down from $385.8 million in 2023. Joint foreign direct investment reached $360 million by 2022, covering sectors like logistics, infrastructure, tourism, and advanced technology. 

The CEPA aligns with the UAE’s broader strategy to expand its global trade partnerships and increase investment across various sectors. The country aims to grow its non-oil trade to 4 trillion dirhams ($1.1 trillion) by 2031, with international trade playing a central role in its economic vision.


Closing Bell: Saudi benchmark index edges down to close at 12,266

Closing Bell: Saudi benchmark index edges down to close at 12,266
Updated 17 February 2025
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Closing Bell: Saudi benchmark index edges down to close at 12,266

Closing Bell: Saudi benchmark index edges down to close at 12,266

RIYADH: Saudi Arabia’s Tadawul All Share Index edged down on Monday, losing 105.61 points, or 0.85 percent, to close at 12,266.46.    

The total trading turnover of the benchmark index was SR5.4 billion ($1.2 billion), as 41 stocks advanced, while 201 retreated.      

The MSCI Tadawul Index also declined by 15.52 points, or 1.01 percent, to close at 1,521.64.  

The Kingdom’s parallel market, Nomu, lost 92.37 points, or 0.29 percent, to close at 31,644.81. This comes as 30 stocks advanced while 52 retreated.    

Arabian Internet and Communications Services Co. emerged as the best-performing stock, with its share price surging by 4.82 percent to SR355.    

Other top performers included Al Hassan Ghazi Ibrahim Shaker Co., which saw its share price rise by 3.90 percent to SR29.30, and Shatirah House Restaurant Co., which saw a 3.65 percent increase to SR23.26.   

Abdullah Saad Mohammed Abo Moati for Bookstores Co. rose 3.02 percent to SR42.70, while Jamjoom Pharmaceuticals Factory Co. gained 2.74 percent to SR164.80.  

Anaam International Holding Group saw the steepest decline of the day, with its share price easing 5.80 percent to close at SR24.68.  

Al Mawarid Manpower Co. fell 3.45 percent to SR134.20, while Al Majed Oud Co. dropped 3.28 percent to SR171.20.  

Middle East Healthcare Co. also faced a loss in today’s session, with its share price dipping 2.99 percent to SR81.20, while Mutakamela Insurance Co. saw a 2.77 percent to settle at SR17.52.   

On the announcements front, Dar Al Arkan Real Estate Development Co. has fully redeemed its $600 million sukuk from its 2025 Series 6 Medium-Term Note program. 

In a bourse filing, the company confirmed that the sukuk was paid in full on its due date, with the principal amount transferred to the designated account.  

The sukuk, valued at $600 million, was originally issued on Oct. 15, 2019, with a trading end date of Feb. 15. 

Dar Al Arkan utilized its internal resources to meet the obligation, ensuring a smooth redemption process. HSBC Bank served as the transaction’s paying agent and sukuk holders’ agent.  

A total of 3,000 sukuk units, each with a par value of $200,000, were redeemed, representing 100 percent of the issued amount. 

Sukuk holders are scheduled to receive their respective amounts in their accounts on Feb. 17.

The financial impact of the redemption will be reflected in the company’s first-quarter 2025 results. 

Dar Al Arkan acknowledged the role of its investors and sukuk holders in the transaction, emphasizing their continued trust in the company, its board, and its executive management.