Saudi sukuk ETF begins trading in Hong Kong’s landmark launch of sharia-compliant bonds
ETF tracking Saudi’s Islamic government and agency bonds posts strong gain in first day of trading in Hong Kong
The ETF, called Premia BOCHK Saudi Arabia Government Sukuk ETF, started trading on the Hong Kong stock exchange on Thursday, giving local investors access to the world’s second-largest market for sharia-compliant debt securities. The ETF trades in Hong Kong dollars under code 3478 and in US dollars under code 9478.
The fund tracks the performance of the iBoxx Tadawul Government and Agencies Sukuk Index, and includes only investment-grade sukuk issued by the Saudi government or its agencies, denominated in Saudi riyals or US dollars, according to a statement.
The ETF rose 1.8 per cent to HK$82.48 and 1.7 per cent to US$10.52 at the close of trading. The iBoxx index has returned 4.2 per cent this year in local-currency terms, following a 0.4 per cent gain in 2024.
