Saudi Arabia's Capital Market Authority (CMA) has approved its first exchange-traded fund (ETF) that tracks equities listed in Hong Kong, marking a milestone for the Middle East. The ETF, named "Albilad CSOP MSCI Hong Kong China Equity ETF," will be available on the Saudi Stock Exchange (Tadawul). This launch is part of a broader effort to deepen financial ties between Hong Kong, China, and Arab nations as tensions rise with the West. The ETF will focus on Hong Kong-listed companies, including Chinese firms, though the CMA has not yet provided a specific launch date.

This collaboration follows Hong Kong's November launch of the region’s first ETF tracking Saudi equities. The ETF has grown significantly, reaching nearly HK$10 billion ($1.28 billion). Both regions have been exploring cross-listing opportunities, with Chinese regulators approving ETFs that give investors exposure to Saudi markets. This development is another step towards strengthening financial cooperation between the Middle East and East Asia.