SBI launched Saudi Arabia ETF and partners for “BIM Capital” JV

Among all the news from the eighth Future Investment Initiative (FII) conference in Riyadh this past week, SBI Holdings took the spotlight with the actual launch of a Saudi Arabia ETF, augmented with the announcement of an investment fund joint venture.

While Mizuho Financial Group announced a memorandum of understanding (MoU) with Saudi Arabia’s Public Investment Fund (PIF) to potentially launch an exchange traded fund (ETF) in Japan investing in the Saudi Arabian equity market, SBI Global Asset Management is already one step ahead.

Its “SBI Saudi Arabia Equity Exchange Traded Fund”, established and managed by its subsidiary SBI Asset Management, has been listed on the Tokyo Stock Exchange (TSE).

The market capitalization of the ETF at the time of listing was 2.1 billion yen, and it was the largest emerging country equity ETF to be listed on the TSE in the past ten years, and its trust fee of 0.1925% p.a. (incl.tax) is the lowest compared with the other 17 TSE-listed emerging market ETFs under management, with an average fee of 0.6374% p.a. (incl.tax), receiving high expectations from investors.

The ETF became available for trading on October 31, 2024, on the exchange through securities companies nationwide. Saudi Arabia has been implementing its “Vision 2030” economic reform program, and the growth potential of its stock market is expected to increase alongside Saudi Arabia’s economic growth. By offering this ETF, SBI Asset Management believes that they can provide investors with opportunities to invest in the Middle East, a previously unfamiliar market, to diversify their portfolios and achieve long-term asset growth.

In other news, Saudi Arabia-based venture studio firm BIM Ventures and SBI Holding announced the establishment of BIM Capital, a joint venture designed to contribute to growth opportunities across Saudi Arabia and the broader Middle East. BIM Capital will focus on a diverse range of investments, including private equity, venture capital, debt funds, and real estate development funds, positioning itself as a key player in the region’s financial and investment landscape.

BIM Capital aims to attract over $200 million (SAR750 million) in foreign direct investment (FDI) and targets total assets under management (AUM) exceeding $2 billion (SAR7.5 billion). The firm will leverage its expertise to identify high-growth sectors, with a particular emphasis on technology ventures, emerging industries, and real estate development, offering investors access to innovative, transformative opportunities.

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