Riyadh – Mubasher: The Capital Market Authority (CMA) of Saudi Arabia has officially granted approval to Al Rajhi Capital Company, a subsidiary of Al Rajhi Bank, for the public offering and listing of the Al Rajhi MSCI Saudi Equity ETF.

The exchange-traded fund (ETF) is set to be listed on the Saudi Exchange (Tadawul), marking a further expansion of the Kingdom’s passive investment vehicle offerings.

Meanwhile, the regulatory approval confirms that the fund manager has met all statutory requirements under the Capital Market Law and its Implementing Regulations, allowing the fund to move forward with its market debut.

In an official announcement released by the market regulator, the CMA confirmed that its resolution regarding the Al Rajhi MSCI Saudi Equity ETF provides the legal framework for the fund to offer its units to the investing public.

As an ETF, the vehicle is designed to provide investors with exposure to the Saudi equity market by tracking the performance of an MSCI-indexed basket of securities. This approval represents a significant step for Al Rajhi Capital as it broadens its suite of investment products available to both institutional and retail participants on Tadawul.

The regulatory body emphasized the importance of transparency and informed decision-making throughout the investment process. To this end, the Terms and Conditions (T&Cs) for the Al Rajhi MSCI Saudi Equity ETF have been made available on the official websites of both the fund manager and the CMA.

The CMA noted that an investment decision should only be made after a comprehensive review of the fund’s documentation. The regulator warned that investing without a thorough understanding of the Terms and Conditions may involve high levels of risk.

The documentation is designed to allow potential investors to evaluate the viability of the investment in the context of their own financial goals and risk tolerance. Furthermore, the CMA suggested that any individuals who find the technical aspects of the T&Cs difficult to interpret should seek guidance from an authorized financial advisor before committing capital.

The CMA stated that the approval of the Al Rajhi MSCI Saudi Equity ETF should not be viewed as an endorsement or a recommendation to invest in the fund. Instead, the approval signifies strictly that the fund manager has complied with the necessary legal and regulatory standards required to bring such a product to the public market.

Moreover, the responsibility for assessing the financial merits and the potential returns of the fund remains entirely with the investor.