Hong Kong-listed Saudi ETF assets hit $1.3B; GCC interest rising: HKEX official

Gregory Yu, Head of Markets at Hong Kong Exchanges and Clearing (HKEX)

Gregory Yu, Head of Markets at Hong Kong Exchanges and Clearing (HKEX), said cross-border investment between Hong Kong and the Gulf Cooperation Council (GCC) is growing at a rapid pace.

The 2023 listing of a Saudi exchange-traded fund (ETF) was a milestone, with its assets under management (AUMs) now exceeding $1.3 billion in just 18 months, he told Argaam on the sidelines of the Capital Markets Forum 2025 in Hong Kong.

Yu said that HKEX recently listed a new Saudi sukuk fund, which reflects increasing investor appetite in Hong Kong for Saudi financial products.

He added that interest is coming not just from Asian investors, but also from Saudi and other GCC investors who are actively engaging in Hong Kong-listed equities and financial products as part of a “two-way flow”.

HKEX serves as a bridge between China and global markets, particularly for the GCC countries, Yu said.

He added that HKEX had seen a rise in initial public offerings (IPOs) this year, with proceeds exceeding $10 billion, making it the second largest globally and first if Special Purpose Acquisition Co. (SPAC) listings are excluded.

GCC investors, especially from Saudi Arabia, are focusing on sectors such as technology and renewable energy, supported by regulatory reforms like Chapter 18C, which facilitates listings by innovative companies in Hong Kong. This aligns closely with the objectives of Saudi Vision 2030.

Yu revealed that HKEX is in talks with several Saudi companies on potential listings or dual listings amid growing interest from Gulf financial institutions, particularly in the technology and financial services sectors.

He stated that the exchange recorded strong inflows from institutional investors outside Asia, particularly from the GCC, into Chinese equities and ETFs.

Yu stated that Middle East investors have been the cornerstone of several recent IPOs.