Premia Partners, a leading Exchange Traded Fund (ETF) provider from Hong Kong, has made history by launching Asia’s first Saudi Arabia Government Sukuk ETF. The launch is in collaboration with Bank of China Hong Kong Asset Management Limited (BOCHKAM), and the fund is now listed on the Hong Kong Stock Exchange.
Known as the Premia BOCHK Saudi Arabia Government Sukuk ETF, this fund gives investors easy access to Shariah-compliant sukuk issued by the Saudi government and its agencies. The fund has a competitive total expense ratio of just 0.35 per cent per year and tracks the iBoxx Tadawul Government & Agencies Sukuk Index. It is listed under the tickers US$443 for trading in Hong Kong dollars and US$1,207 for trading in US dollars.
The ETF offers stable income and diversification benefits, with low correlation to other bond types or asset classes. It also reflects Saudi Arabia’s strong economic fundamentals, such as low government debt and steady growth under the Vision 2030 plan.
Rebecca Chua, Managing Partner at Premia Partners, stated that the ETF was designed to meet the growing interest in Shariah-compliant and emerging market fixed income investments. Li Tong, Deputy Chief Executive Officer (CEO) of BOCHK and Chairman of BOCHKAM, added that the fund combines Islamic finance principles with the transparency and convenience of ETFs.
HSBC is supporting the fund with trustee and custody services in both Hong Kong and Saudi Arabia. The initiative also received backing from the Saudi Exchange and S&P Dow Jones Indices.
This launch marks a significant step forward in connecting Asia and the Middle East through halal finance, highlighting Hong Kong’s growing role as a global Islamic investment hub.
