Saudi financial company to launch petrochem ETF for petrochemical shares on bourse

07-Jul-10

Saudi's Falcom Financial Services plans to launch an exchange-traded fund (ETF) for Saudi petrochemical shares on the Kingdom’s bourse as per Reuters. After granting foreign share ownership via swap agreements in 2008, the Kingdom has allowed local brokerages to launch ETFs, in a bid to attract more investment to its bourse. The fund with an initial value of SR 25 mln (US$6.7 mln) will focus on petrochemicals and will start trading on July 10. It is unclear whether the fund would be open for foreigners but analysts expect it to after the firm allowed it for its first fund launched in April.