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ADS Investment Solutions, FTSE Russell to launch Saudi Arabia-focused index

United Arab Emirates-based ADS Investment Solutions and FTSE Russell intend to jointly launch a new Saudi Arabian equities-focused index to be listed on the Abu Dhabi Securities Exchange in the next few weeks at the earliest, Reuters reported May 15.

The index will be licensed for an exchange-traded fund to be created by ADS Investment, and was developed to minimize the volatility of the FTSE Saudi Arabia All Cap Index, the company said May 15.

The listing is subject to regulatory approvals, Ryan Lemand, senior executive officer at ADS Investment, told Reuters. Initial capital for the new fund has been finalized, Lemand said, without giving the size of the fund.

The ETF has been licensed by ADS Investment via a foreign institution to allow international investors exposure to Saudi Arabia, Lemand said, without disclosing the name of the institution. Fund managers told the newswire that the new product would be the first solely Saudi-focused cross-border ETF listed in the Gulf region.

The move follows FTSE Russell's recent announcement that it will promote Saudi Arabia to emerging-market status and include Saudi domestic stocks in the FTSE Emerging Index from March 2019. MSCI will decide whether to do the same in June, Reuters noted.

FTSE Russell is a unit of London Stock Exchange Group PLC.