Premia launches first Saudi Arabia government Sukuk ETF in Asia
Hong Kong – In partnership with BOCHK Asset Management Limited (BOCHKAM), Premia Partners, the leading homegrown ETF provider from Hong Kong, announces listing of Premia BOCHK Saudi Arabia Government Sukuk ETF (the ETF) on 29 May 2025 on HKEx.
As Asia's first investment grade government sukuk ETF, the physical replicated ETF is designed to provide investors with direct access to government sukuk denominated in Saudi Riyal or US Dollar issued by the Saudi Arabia government or government agencies, with total expense ratio (TER) of 0.35% p.a. only.
Premia BOCHK Saudi Arabia Government Sukuk ETF (Tickers: 3478.HK (HKD distribution class)/ 9478.HK (USD distribution class)) tracks the iBoxx Tadawul Government & Agencies Sukuk Index.
Covering only Sukuk instruments issued by Saudi Arabian government or its agencies, with a stable A-rated sovereign issuer rating by major international agencies, the strategy reflects the robust oil reserves, low government debt level and vibrant economic development of Saudi Arabia under the Vision 2030 Strategic Plans.
The ETF offers stable income and attractive yield, as well as diversification benefits given its low correlations with other bonds and major asset classes.
'The launch of this ETF is a significant milestone and cumulation of a year-long preparation in our efforts to build an efficient tool for international allocators looking for diversification from investment grade emerging markets and shariah-compliant fixed income solutions,' said Rebecca Chua, Managing Partner of Premia Partners. 'It is a particularly timely strategy in the current market environment, as allocators increasingly look to values from more diversified allocation and uncorrelated returns.'
Li Tong, Deputy Chief Executive of BOCHK and Chairman of BOCHKAM, said: 'BOCHKAM is pleased to collaborate with Premia Partners to launch the Asia's first Saudi Arabic Government Sukuk ETF. This fund combines the flexibility and transparency of an ETF with the features of Islamic finance, providing investors with convenient access to Saudi Arabia's capital market. BOCHKAM will continue to foster collaboration with the Middle East and other markets by developing more globally-diversified asset allocation solutions, contributing our efforts to strengthen Hong Kong's position as a global asset management centre.'
Leveraging its capabilities in both Asia and Middle East, HSBC will provide a range of trustee, global custody and fund administration services for Premia BOCHK Saudi Arabia Government Sukuk ETF in both Hong Kong and Saudi Arabia. Commenting on the launch, Faris AlGhannam, Chief Executive Officer and Board member, HSBC Saudi Arabia, said: 'ETFs have become a key tool for asset managers tapping into the emerging Middle East-Asia investment corridor. This landmark transaction reflects the sustained demand among foreign investors for access to Saudi Arabia's economic transformation and the Kingdom's debt capital markets. As the leading international bank with the deepest asset servicing capabilities in both Hong Kong and Saudi Arabia, we are proud to have enabled Premia to launch the Premia BOCHK Saudi Arabia Government Sukuk ETF.'
Mr. Mohammad Al-Rumaih, CEO of the Saudi Exchange, said: "The issuance of this ETF on HKEX marks a significant milestone in our ongoing efforts to provide global investors with access to the Saudi market and enhance portfolio diversification worldwide. This ETF, tracking the iBoxx Tadawul Government & Agencies Sukuk Index (SAR Unhedged) TRI, offers global investors a unique opportunity to access highquality government-issued sukuk."
'S&P Dow Jones Indices is delighted to license the iBoxx Tadawul Government & Agencies Sukuk Index to Premia Partners for this new ETF launch. The index provides market participants with a benchmark that focuses on shariah-compliant funding obtained by the Saudi Arabia government and its key organizations through sukuk issuances. As Saudi Arabia diversifies its economic base and fosters growth within the domestic debt market, the index is designed to encompass shariah-compliant sukuk issuances to support the kingdom's Vision 2030 initiatives,' said Kangwei Yang, Director of Fixed Income Product Management at S&P Dow Jones Indices.
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For enquiry
enquiries@premia-partners.com
About Premia Partners
Founded in 2016, Premia Partners is a leading ETF manager from Hong Kong, dedicated to building lowcost, efficient, best practice ETFs for Asia. As of May 29th 2025, Premia Partners manages 12 equity and fixed income ETFs designed as low-cost, efficient allocation tools for Asia. For more information on Premia or Premia ETFs covering China, Emerging ASEAN, Asia Metaverse/ Innovative Technology, Vietnam, Taiwan, China high yield bonds, China government bond, Asia USD investment grade bonds, US Treasury and Saudi Arabia Government Sukuk, please visit www.premia-partners.com
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