FINANCIAL NEWS

Saudi Arabia- Second ETF launched & open to investors

09 Aug 2010

(MENAFN) Sources revealed that Saudi Arabia?s Tadawal stock exchange has launched its second Exchange Traded Fund (ETF) this year, which will be open to foreign investors.

The sources familiar with the matter said that both ETF’s will not accept individual stock purchases. Non-resident foreigners were previously limited to trading through share swap transactions.

Both ETF’s were launched by Falcom, with the second one focusing mainly on the petrochemical sector with Saudi Basic Industries Company leading the 14-stock portfolio

In the first few months of this year, Falcom set up the first Falcom Saudi Equity ETF, which value has dropped significantly since its inception.

A third ETF could join the first two sometime this year, with Shua’a Capital promising a Saudi Fund launch in the Fall.

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