Abu Dhabi-based ADS Investment Solutions (ADSI) has launched a Saudi Arabian smart beta fund to meet the growing demand for exposure to the Middle East’s biggest and fastest-changing economy.

ADSI stated that the FTSE ADS Custom Minimum Variance Index was jointly created in 2018 ahead of the launch this week of the FTSE ADS Saudi Minimum Variance Fund, which tracks the index.

Ryan Lemand, the Senior Executive Officer and Board Member of ADS Investment Solutions, said, “Our wealth management and asset management clients are hungry for high-quality access to Saudi Arabian equities at a time when the economy is going through many positive changes.”

Saudi Arabia was included in key emerging markets indices since early 2018 and the projected passive inflows into the Saudi stock market from recent inclusion in the FTSE Global Equity Index Series are estimated to be around $6 to 7 billion.

“We are delighted to collaborate with ADS Investment Solutions and to support the development of the local capital markets in the Middle East,” added Gary Rynhoud, the Head of the Middle East and Africa, FTSE Russell.

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