SSGA launches #SaudiArabia sovereign bond ETF in Europe

SSGA launches Saudi Arabia sovereign bond ETF in Europe

State Street Global Advisors has launched an exchange traded fund that will offer European investors access to Saudi Arabian government bonds. 

The Ireland-domiciled SPDR JPMorgan Saudi Arabia Aggregate Bond Ucits ETF invests in liquid, dollar-denominated and Saudi riyal-denominated government and quasi-government debt, including sukuk bonds. 

The US-based asset manager said the ETF was the first dedicated Saudi Arabia fixed-income Ucits ETF in Europe. 

The vehicle tracks the JPMorgan Saudi Arabia Aggregate index, which JPMorgan developed “in close collaboration” with the asset management arm of financial services group State Street. 

The ETF has been registered for sale across much of Europe, including France, Germany, Italy, Spain and the UK. 

It is tradable on Frankfurt and London’s stock exchanges with a total expense ratio of 0.37 per cent. 

Emmanuel Laurina, head of the Middle East, Africa and official institutions at SSGA, said the ETF would offer investors “cost-effective access to the fast-growing fixed-income market in Saudi Arabia”. 

“As the kingdom continues to diversify its economy through energy transition, infrastructure and other growth initiatives, we believe there are appealing investment themes for international investors to capture through a diversified exposure to Saudi bonds.” 

SSGA, the world’s fourth-largest money manager with more than $4.7tn in assets, added that growth of the Saudi bond market had accelerated over recent years, driven in part by the kingdom’s Vision 2030, a government programme that aims to diversify the economy, society and culture. 

Franklin Templeton in October launched an actively managed Saudi Arabia-focused bond strategy for European investors, the Franklin Saudi Arabia Bond Fund, as well as a Saudi Arabian equity ETF.

#Kuwait to impose 15% minimum top-up tax on multinational enterprises | Reuters

Kuwait to impose 15% minimum top-up tax on multinational enterprises | Reuters

Kuwait will impose a minimum top-up tax (DMTT) of 15% on multinational enterprises operating in the country, starting in January, the finance ministry said on Monday.

The finance ministry said the implementation of the tax comes under its efforts to diversify the Gulf country's sources of income.

The DMTT comes under the Organisation for Economic Co-operation and Development’s (OECD) Two-Pillar Solution, which stipulates that large multinational enterprises pay a minimum effective tax rate of 15% on profits in each country where they operate.

The move follows the United Arab Emirates imposing a similar tax on large multinational companies operating in the country from January under efforts to boost non-oil revenue.

#Israel approves switch to Monday-to-Friday trading on Tel Aviv Stock Exchange | Reuters

Israel approves switch to Monday-to-Friday trading on Tel Aviv Stock Exchange | Reuters

Israeli Finance Minister Bezalel Smotrich said on Monday he would approve the transition to Monday-to-Friday trading on the Tel Aviv Stock Exchange (TASE) in order to align Israeli markets with international standards.

The change is expected to take effect at the beginning of 2026, however, and trading on Fridays will conclude at 2 p.m. local time to ensure that the Jewish sabbath can be observed.

Israel's stock trading days currently run from Sunday to Thursday.

"This move will make it easier for global investors to access the Israeli capital market, invest in our market without unnecessary barriers, and bolster the Israeli economy in the long term," Smotrich said in a statement.

Itai Ben-Zeev, the chief executive of TASE, said in transitioning to Monday to Friday trading will open the door to more international investment, enhance the appeal of Israeli companies and accelerate growth of the local capital market.

TASE has long hoped a decision to shift away from Israel's Sunday to Thursday work week to one that overlaps more with Wall Street and European bourses would win it inclusion in global index provider MSCI's Europe category.

MSCI in 2022 rejected shifting the country to a new region, citing differing market trading days as a key reason.

Israel's shekel currency is already traded on Fridays and more services keep running during the sabbath in Tel Aviv than in most other Israeli cities.

Most Gulf bourses gain, #Dubai hits 10-year high | Reuters

Most Gulf bourses gain, Dubai hits 10-year high | Reuters

Most stock markets in the Gulf ended higher on Monday in thin trade ahead of the end of the year, with the Dubai index closing at its highest in more than a decade.

Saudi Arabia's benchmark index (.TASI), opens new tab advanced 0.9%, with Al Rajhi Bank (1120.SE), opens new tab rising 2.1% and ACWA Power Co (2082.SE), opens new tab adding 2.7%.

After the close ACWA announced entry into the Chinese market by securing more than 1 gigawatt of renewable energy projects in collaboration with Chinese partners.

Dubai's main share index (.DFMGI), opens new tab gained 0.5%, hitting its highest since May 2014, led by a 1.8% rise in Dubai Electricity and Water Authority (DEWAA.DU), opens new tab and a 3% gain for Emaar Development (EMAARDEV.DU), opens new tab.

The real estate sector was largely responsible for the market's upward momentum, said Joseph Dahrieh at broker Tickmill.

"This sector was responsible for a significant portion of the solid gains this year, making Dubai's market stand out as an exception among regional markets," he said.

The UAE's real gross domestic product grew 3.6% in the first half of 2024, the state news agency reported the Emirati finance minister as saying on Monday.

In Abu Dhabi, the index (.FTFADGI), opens new tab finished with a 1% gain.

Separately, Abu Dhabi National Oil Company (ADNOC) said the company is set to drive 200 billion dirhams ($54.45 billion) into the UAE economy over the next five years through its In-Country Value (ICV) programme.

The Qatari index (.QSI), opens new tab eased 0.2%, hit by a 0.8% fall in the Gulf's biggest lender, Qatar National Bank (QNBK.QA), opens new tab.

Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab dropped 0.9%, weighed down by a 3.3% fall for Talaat Moustafa Holding (TMGH.CA), opens new tab.