Arab News Japan

DUBAI: The first Japanese mutual equity fund is underway in Saudi Arabia as part of a new agreement between Albilad Capital, the Kingdom’s largest exchange-traded fund manager, and SBI Holdings, a leading Japanese financial group.

A statement from SBI Holdings on Thursday said the partnership would give Saudi investors access to Japanese equities for the first time. Meanwhile, Japanese investors will gain exposure to Saudi Arabia’s innovative financial products, including Shariah-compliant ETFs.

In October, SBI Asset Management — a subsidiary of SBI Global Asset Management — introduced Japan’s first Saudi stock index-linked ETF, the SBI Saudi Arabia Equity Exchange Traded Fund, on the Tokyo Stock Exchange.

Building on that achievement, the new agreement further strengthens investment ties between the two nations.

The collaboration aligns with Saudi Arabia’s Vision 2030, which sees the Kingdom focusing on attracting foreign investment, expanding non-oil industries and developing sectors like tourism and entertainment.

Recent initiatives include creating one of the world’s largest theme parks based on Japanese intellectual property like Dragon Ball and substantial investments in major Japanese gaming companies.

Albilad Capital, the investment arm of Bank Albilad, is a key player in Saudi Arabia’s financial market and manages most of the country’s ETFs.

SBI Group established its Middle East regional hub in Riyadh earlier this year, underscoring its commitment to the region. The group has also partnered with local entities to launch a regional investment fund, aiming to drive growth and innovation.