BlackRock is planning to launch an exchange traded fund (ETF) exclusively dedicated to Saudi Arabian stocks as the largest Arab stock index is gearing up to open its market to foreign investors, Bloomberg reports.
BlackRock, whom is the world’s largest money manager, is seeking approval from the U.S. Securities and Exchange Commission (SEC) for its iShares MSCI Saudi Arabia Capped ETF, according to a recent filing.
The exclusive Saudi Arabia ETF will aim at tracking the MSCI Provisional Saudi Arabia Investable Market Index, the filing said.
The Saudi Arabia ETF may include large, mid, or small capitalization companies in sectors such as finance, materials, and telecommunications, according to the filing.
The World’s largest crude exporter and the Middle East’s largest economy, Saudi Arabia, plans to open its $526 billion stock exchange to foreign investors in 2015 in a move that is aimed at attracting more international investment as the nation looks to reduce its dependence on oil revenue.
Foreign investors will be limited to equity swaps and exchange traded funds (ETFs) as they are unable to directly buy Saudi Arabian listed stocks.
Source: Bloomberg
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