SGX Lists First Saudi Arabia Bond ETF

Singapore Exchange (SGX) has listed its first Saudi Arabia-focused exchange-traded fund (ETF), the SPDR® J.P. Morgan Saudi Arabia Aggregate Bond UCITS ETF. The listing is seen as a notable step in expanding the bourse's fixed income offerings and enhancing investor access to the Gulf Cooperation Council (GCC) markets.

The ETF, managed by State Street Investment Management, tracks the J.P. Morgan Saudi Arabia Aggregate Bond Index. It provides exposure to liquid USD- and SAR-denominated government and quasi-government bonds, including Sukuk. The product was originally launched on Deutsche Börse in December 2024 and subsequently cross-listed in London and Milan before making its debut in Singapore.

"This is not only a meaningful expansion of SGX's fixed income products but also paves the way for broader investor access to the GCC region," said Ng Yao Loong, Head of Equities at SGX Group. He added that the exchange is positioning itself as a "trusted gateway" to Saudi Arabia's economic growth, which is being driven by its Vision 2030 reform plan.

State Street also highlighted the growing appeal of the market. "Saudi Arabian bonds have become a compelling area for portfolio diversification," said Anna Paglia, Executive Vice President at the firm, pointing to increasing global investor demand. She noted that the ETF has already attracted significant attention in Europe and the Middle East.

Institutional backing has been strong since the ETF's inception. In January 2025, Saudi Arabia's Public Investment Fund (PIF) committed US$200 million, which market watchers view as a vote of confidence in the product's credibility and long-term growth potential.

Investor interest in the GCC's fixed income markets has been growing, with the overall market reaching over US$1 trillion as of March 31, 2025. The expansion reflects the region's economic diversification strategies and reforms aimed at attracting international capital.

The listing is also supported by SGX's integration with Euroclear's ICSD ETF model, an infrastructure that simplifies cross-border settlement between Europe and Asia. With this development, SGX's ETF offerings now total 49, with combined assets under management exceeding S$15 billion.