Saudi Arabia's Public Investment Fund (PIF) has invested SR750mn ($200mn) in a newly launched exchange-traded fund (ETF) tracking Saudi bonds, State Street Global Advisors, a subsidiary of State Street Corporation, announced on January 8.

The PIF is the largest investment fund in the Kingdom of Saudi Arabia and is directly backed by state oil company Aramco and the Royal household. 

The SPDR JP Morgan Saudi Aggregate Bond ETF, managed by State Street Global Advisors, is the first Saudi fixed-income ETF to be listed in Europe.

The fund has been listed on both the London Stock Exchange and Germany's Xetra.

The ETF tracks the JP Morgan Saudi Arabia Aggregate Index, providing exposure to both government and quasi-government bonds denominated in Saudi riyals and US dollars, including sukuk instruments.

The fund is available to investors across multiple European markets including Austria, Denmark, France, Finland, Germany, Italy, Luxembourg, Netherlands, Norway, Spain, Sweden and the United Kingdom.

State Street said the launch represents a significant step in PIF's efforts to increase international access to Saudi financial markets and attract foreign investment.

The timing aligns with growing international investor interest in Saudi Arabia's maturing financial markets, which have seen significant growth and development, supported by ongoing transformations and achievements under Saudi Vision 2030.