Two Saudi investment companies will launch a Hong Kong-listed ETF, aiming to raise nearly $1 billion.

According to reports, two investment companies in Saudi Arabia will launch exchange-traded funds (ETFs) that will be the country's first funds tracking Hong Kong stocks, with an expected fundraising of nearly $1 billion. The report quoted sources as saying that a Saudi Arabian exchange-traded fund tracking stocks listed in Hong Kong is expected to raise about $500 million. The fund is expected to be launched by the end of this year by SAB Invest, a subsidiary of Saudi Awwal Bank. The review is currently underway, and the size of the ETF and its listing time may change. According to a statement on Tuesday, Albilad Capital, the securities department of Bank Albilad, is launching a second ETF tracking Hong Kong and mainland China stocks, and has received approval from the Saudi Arabian Capital Market Authority for issuance. The fund is expected to raise up to $400 million and will be listed by the end of this year. In May this year, Hong Kong's Financial Secretary Christopher Hui revealed that Hong Kong is collaborating with several financial institutions to launch ETFs tracking Hong Kong stock indices in the Middle East, further strengthening capital flows between Hong Kong and the Middle East.