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  

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 Arabia opens business travel channel with Syria to boost investment

Updated 22 July 2025
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Saudi Arabia opens business travel channel with Syria to boost investment

  • Syrian businessmen can apply for travel licenses directly at embassy in Damascus
  • Kingdom to organise Saudi-Syrian investment forum in Damascus

RIYADH: Saudi Arabia will introduce travel permits for businessmen and investors from Syria to deepen bilateral relations and facilitate mutual visits. 

Syrian businessmen can now apply for travel licenses directly at the embassy in Damascus, the Kingdom’s embassy said in an official post on X. Meanwhile, Saudi investors seeking to visit Syria can register via the Interior Ministry’s e-platform. 

Saudi Arabia and Syria have made significant strides in restoring diplomatic ties, with the Kingdom reopening its embassy in Damascus in 2024 after a 12-year hiatus. In April, Saudi Arabia and Qatar announced a joint initiative to settle Syria’s $15 million debt to the World Bank as part of broader efforts to support the financial recovery of the war-torn nation. 

“The embassy announces the availability of travel permits for interested Saudi and Syrian businessmen and investors, enabling them to exchange visits and explore investment opportunities in the two brotherly countries,” the statement said. 

The Kingdom’s Ministry of Investment announced that it will organize a Saudi-Syria Investment Forum in Damascus to explore cooperation opportunities to promote sustainable development in the two countries.

In an X post, the ministry said the forum is expected to witness significant participation from public and private sector entities on both sides.

In June, Saudi Minister of Investment Khalid Al-Falih held a virtual meeting with his Syrian counterpart, Mohammad Al-Shaar, to explore investment partnerships and discuss opportunities for collaboration across public and private sectors. 

Al-Falih affirmed the Kingdom’s commitment to helping stabilize and develop the Syrian economy, adding that stronger ties would serve the mutual interests of both countries and promote regional economic prosperity. 

Further aiding Syria’s economic recovery, US President Donald Trump signed an executive order in June to dismantle sanctions against the country. 

Following the announcement, Syrian Minister of Foreign Affairs and Expatriates Asaad Hassan Al-Shaibani posted on X that the decision by the US administration would support Syria’s economic revival and reintroduce the country to the global community. 


Most Gulf bourses fall on US tariff concerns, weaker oil

Updated 22 July 2025
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Most Gulf bourses fall on US tariff concerns, weaker oil

BENGALURU: Most Gulf stock indexes dipped on Tuesday, as investors worried about fading prospects of the EU’s trade deal with the US ahead of a looming tariff deadline, with weak oil prices offsetting strong corporate earnings.

The EU is exploring broader counter-measures against the US as prospects of an acceptable trade agreement with Washington wane, according to EU diplomats.

US President Donald Trump’s imposition of tariffs around the world risks hurting global economic growth, and with it oil consumption.

Dubai’s main share index eased 0.3 percent, marking the third straight session of losses as investors remained cautious ahead of key earnings and locked in profits following a multi-year rally.

Index heavyweight Dubai Islamic Bank dropped 1.2 percent while budget carrier Air Arabia fell over 3 percent, ending a five-session winning streak.

In Abu Dhabi, the index was under pressure as a wave of earnings releases this week kept many investors on the sidelines.

Qatar’s stock index reversed early losses to finish 1.1 percent higher, reaching its highest level in more than two and a half years, as nearly all sectors advanced.

Banking stocks led the advance, supported by strong earnings. Qatar Islamic Bank soared 6 percent, rising for a fourth straight session after reporting upbeat results.

Outside the Gulf, Egypt’s blue-chip index declined 1 percent, pulling back from a record high. 


Egypt current account deficit narrows to $13.2bn in 9 months through March

Updated 22 July 2025
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Egypt current account deficit narrows to $13.2bn in 9 months through March

DUBAI: Egypt’s current account deficit narrowed to $13.2 billion in the nine months through March 2025, from $17.1 billion in the same period a year earlier, Egypt’s central bank said on Tuesday.

The bank attributed the slimmer deficit to an 86.6 percent increase in remittances from Egyptians working abroad, as well as a rise in the services surplus due to 23 percent higher tourism revenue.

Oil exports declined by $430.5 million to $4.2 billion, from $4.6 a year earlier, while oil imports increased by $1.2 billion to $14.5 billion, from $9.7 billion.

Egypt has been seeking to import more fuel oil and liquefied natural gas this year to meet its power demands after enduring blackouts during periods of shaky gas supply in the past two years.

Concerns intensified after the supply of natural gas from Israel to Egypt dropped during Israel’s air war with Iran.

Suez Canal revenues declined to $2.6 billion, from $5.8 billion in a year earlier, as revenue from the vital global trade route continued to suffer because of Yemeni Houthis’ attacks on ships in the Red Sea.

The Iran-aligned group says it attacks ships linked to Israel in support of Palestinians in Gaza.

Meanwhile, Egypt’s tourism revenue reached $12.5 billion from July 2024 through March 2025, compared to $10.9 billion in the same period a year earlier.

Remittances from Egyptians working abroad increased to $26.4 billion, from $14.5 billion.

Foreign direct investment hit $9.8 billion, compared to $23.7 billion.


Closing Bell: Saudi main index slips to 10,843

Updated 22 July 2025
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Closing Bell: Saudi main index slips to 10,843

  • Parallel market Nomu dropped 340.01 points to close at 26,740.01
  • MSCI Tadawul Index declined by 1.33% to 1,390.20

RIYADH: Saudi Arabia’s Tadawul All Share Index slipped on Tuesday, as it shed 137.97 points, or 1.26 percent, to close at 10,843.20. 

The total trading turnover of the benchmark index was SR4.92 billion ($1.31 billion), with 25 of the listed stocks advancing and 231 declining. 

The Kingdom’s parallel market, Nomu also dropped 340.01 points to close at 26,740.01. 

The MSCI Tadawul Index declined by 1.33 percent to 1,390.20. 

The best-performing stock on the main market was Sport Clubs Co., which debuted on the benchmark index on Tuesday. The firm’s share price advanced by 24 percent to SR9.30. 

The share price of Tourism Enterprise Co. also rose by 6.25 percent to SR1.02. 

Riyadh Cables Group Co. saw its stock price climb by 1.92 percent to SR132.50. 

The share price of Fawaz Abdulaziz Alhokair Co., also known as Cenomi Retail, declined by 5.71 percent to SR29.38. 

On the announcements front, Etihad Etisalat Co., also known as Mobily, announced its net profit for the first half of the year reached SR1.59 billion, representing a 22.94 percent increase compared to the same period in 2024. 

In a Tadawul statement, Mobily attributed the rise in net profit to increased revenues across all business segments and its growing customer base. 

Mobily saw its stock price edge up by 1.90 percent to SR56.25. 

Saudi Automotive Services Co. said its net profit for the first half witnessed a year-on-year rise of 48.64 percent to SR33.98 million. 

According to SASCO, the rise in net profit was driven by a higher number of service stations, strong sales from its SASCO Palm and transportation segments, as well as an increase in the selling prices of diesel. 

The share price of SASCO rose by 1.48 percent to SR55. 

Dar Almajed publishes IPO prospectus 

Dar Almajed Real Estate Co. has published the prospectus for its initial public offering, which will list 90 million shares with a nominal value of SR1 each on the main market. 

The development follows the Kingdom’s Capital Market Authority’s approval for the company to float 30 percent of its SR300 million capital in March. 

The book-building process commenced on June 29 and will conclude on Aug. 4. 

The retail subscription period will run from Aug. 14 to 18. 

The company has appointed Saudi Fransi Capital as financial adviser, lead manager, institutional bookrunner, and underwriter for the IPO.


Saudi delivery volumes surge to 101m in Q2 amid logistics push

Updated 22 July 2025
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Saudi delivery volumes surge to 101m in Q2 amid logistics push

RIYADH: Saudi Arabia’s delivery sector processed more than 101 million orders in the second quarter of 2025, driven by surging e-commerce demand and ongoing investments in logistics infrastructure, official data showed. 

According to the latest report from the Transport General Authority, Riyadh accounted for 45.04 percent of the total delivery volume, followed by Makkah at 21.17 percent and the Eastern Province with 15.87 percent. 

Saudi Arabia’s delivery and rail sector expansion aligns closely with the National Transport and Logistics Strategy, which aims to position the Kingdom as a global logistics hub by 2030.  

Key NTLS goals include increasing the sector’s gross domestic product contribution to 10 percent, expanding rail networks to 8,080 km, boosting port throughput to 40 million Twenty-foot Equivalent Units annually, and enhancing air cargo capacity beyond 4.5 million tonnes.  

Other regions contributed smaller shares to the total delivery volume in the second quarter, including Al Madinah at 4.65 percent, Asir at 3.56 percent, and Al Qassim at 2.89 percent. 

Northern and less populated areas recorded modest volumes, with Al Baha at 0.21 percent, Northern Borders at 0.54 percent, Najran at 0.66 percent, and Al Jouf at 0.77 percent.  

This growth in delivery activity coincides with broader momentum in Saudi Arabia’s transport and logistics infrastructure. In the first half of 2025, Saudi Arabia Railways recorded over 7.9 million passengers across 21,205 passenger train trips, an 8 percent increase from the previous year.  

The rail network also supported the 1446 Hajj season, transporting over 4.3 million pilgrims via the Haramain High-Speed Railway and nearly 5.1 million pilgrims through the Mashaer Train network.  

On the freight side, SAR moved more than 14.9 million tonnes of cargo during the same period, marking a 13 percent year-on-year increase. 

These logistics gains were reinforced by Saudi Arabia’s active participation in key industry events and strategic partnerships with local and international firms.  

SAR’s involvement in major exhibitions and forums, alongside collaborations with companies such as STC, Lucid, Turkish Airlines, and SDAIA, underscores the Kingdom’s push to elevate transport capabilities and digital integration.  

Additionally, SAR’s recognition through ISO certifications and national quality awards reflects the growing emphasis on service excellence and governance in the sector. 

Supported by regulatory reforms, digital transformation, and infrastructure investment, the National Transport and Logistics Strategy aims to leverage Saudi Arabia’s strategic location to enhance multimodal connectivity and position the Kingdom among the world’s top ten in the Global Logistics Performance Index.