Saudi Arabia Launches First Japanese Equity Mutual Fund
In a groundbreaking move, Saudi Arabia has introduced its inaugural Japanese equity mutual fund, marking a significant milestone in the new partnership between Albilad Capital, the Kingdom’s largest exchange-traded fund manager, and Japan’s SBI Holdings, a prominent financial group.
The collaboration, as announced by SBI Holdings in a statement released on Thursday, will open up access to Japanese equities for Saudi investors for the first time. Simultaneously, Japanese investors will have the opportunity to delve into Saudi Arabia’s innovative financial products, including Shariah-compliant ETFs.
Strengthening Investment Ties
This partnership builds upon a significant achievement earlier this year when SBI Asset Management, a subsidiary of SBI Global Asset Management, launched Japan’s first Saudi stock index-linked ETF, the SBI Saudi Arabia Equity Exchange Traded Fund, on the Tokyo Stock Exchange.
The new agreement further cements the investment bonds between Saudi Arabia and Japan, aligning with the Kingdom’s Vision 2030 objectives of attracting foreign investment, diversifying the economy, and expanding key sectors like tourism, entertainment, and non-oil industries.
Promoting Growth and Innovation
Recent developments in support of Vision 2030 include the establishment of one of the world’s largest theme parks based on popular Japanese intellectual properties such as Dragon Ball, along with substantial investments in major Japanese gaming companies.
Albilad Capital, the investment arm of Bank Albilad, plays a pivotal role in Saudi Arabia’s financial market and oversees a significant portion of the country’s ETFs.
Commitment to the Region
Meanwhile, SBI Group, which recently set up its Middle East regional hub in Riyadh, has reaffirmed its dedication to the region. The group has also partnered with local firms to launch a regional investment fund aimed at fostering growth and innovation.
This collaboration underscores the deepening financial and economic connections between Saudi Arabia and Japan, positioning both nations for a future filled with shared investment opportunities.