Falcon to launch petrochem ETF on Saudi bourse
07 Jul 2010
(MENAFN) Saudi Arabia?s Falcom Financial Services said that it will launch an exchange-traded fund (ETF) for Saudi petrochemical shares on the Arab world?s largest bourse, Reuters reported.
The world?s top oil exporter is trying to attract more investment to its bourse and has allowed local brokerages to launch ETFs, the latest step after granting foreign share ownership via swap agreements in 2008.
ETFs are like index funds which are traded on a stock market. Saudi investment bank Falcom Financial Services said the fund, which has an initial value of $6.7 million, will focus on petrochemicals and will start trading on July 10, a bourse statement said.
Sitting on more than a fifth of global oil reserves, Saudi Arabia is home to several big petrochemical firms, including Saudi Basic Industries Corp (SABIC) which competes with BASF and Dow Chemical.