HSBC Global Asset Management (HSBC GAM) has launched the HSBC MSCI Saudi Arabia 20/35 Capped UCITS ETF on the London Stock Exchange (LSE).
The ETF has been designed to replicate the performance of MSCI Saudi Arabia 20/35 Capped index by tracking Saudi Arabian shares that are included in the MSCI Emerging Markets Index.
The new UCITS ETF allows for a more cost-efficient way to invest through the Qualified Foreign Investor (QFI) programme.
HSBC GAM has a team of more than 25 professionals currently based in Riyadh to cover the Saudi market.
Since MSCI's decision to include the Kingdom in its Emerging Markets Index - with a two-step process taking place in May and August 2019 - there has been a growing demand for Saudi Arabian securities.
HSBC GAM has revealed there are further listings planned across key markets in Europe.
The HSBC MSCI Saudi Arabia 20/35 Capped UCITS ETF will provide access to approximately 85% of the free float adjusted market capitalisation of Saudi Arabia equities in one transaction and dividends will also be paid to investors on a quarterly basis.
Olga De Tapia, head of EMEA ETFs sales at HSBC GAM, commented: "Saudi Arabia is a market that is increasingly relevant to global investors as it makes further progress in its evolution to becoming an international capital markets hub.
"The HSBC MSCI Saudi Arabia 20/35 Capped UCITS ETF provides investors with a quick and cost-efficient way to access this significant opportunity."
Carmen Conzalez-Calatayud, director and senior product specialist for ETFs at HSBC GAM, added: "The launch is a direct response to increased demand from investors. Our goal, therefore, has been to ensure that the solution we develop is fit for purpose and efficient to implement.
"Our new ETF provides an excellent building block to future-proof our clients' portfolios, and can simply be added to existing allocations, meaning there is no need to reallocate."
The estimated ongoing charges figures (OCF) is 0.50%.