The Public Investment Fund (PIF) is pumping $200 million into the first internationally listed exchange traded fund (ETF) that is focused on Saudi Arabia.

The sovereign wealth fund’s investment in the SPDR J.P. Morgan Saudi Arabia Aggregate Bond UCITS ETF, which is managed by State Street Global Advisors, is expected to further deepen the Saudi market.

The fund, along with State Street Global, confirmed the investment during a bell ringing ceremony at the London Stock Exchange.

“PIF’s investment … further deepens the Saudi market, while attracting investors and strengthening cross-geography partnerships, increasing international investment in Saudi Arabia,” said Yazeed Al-Humied, Deputy Governor and Head of MENA Investments at PIF.

The fund will track the performance of liquid, US dollar-denominated sovereign and quasi-sovereign instruments, as well as SAR-denominated sukuk government bonds from the kingdom.

Debt capital markets in the GCC are forecast to grow further in 2025 and 2026, with oil revenues among the key drivers, according to Fitch Ratings.

(Writing by Cleofe Maceda; editing by Seban Scaria)
(seban.scaria@lseg.com)