Saudi equities land in Europe via State Street’s new ETF

Asset managers at Gulf sovereigns have had a busy week, running private credit lines through PIMCO while public issues get indexed by JPMorgan. Meanwhile, Saudi equities are getting a Europe-ready ETF wrapper and a Dubai shisha maker is taking the SPAC route to Nasdaq, and there are more signs that Egypt’s IPO pipeline may finally be taking real shape.

All of this comes as allocators across MENA+ continue to push beyond their home markets, war or not: Saudi’s Sumou is making a move in Egypt, Masdar has appetite for Montenegro, M42 is investing in Brazil, and a Sawiris-led consortium into Morocco.

Up first:

Boston-headquartered asset manager State Street rolled out a Saudi-focused equity ETF in Europe anchored by the Public Investment Fund (PIF). The ETF, which launched with USD 100 mn in assets, is cross-listed on Xetra in Germany and the London Stock Exchange under the ticker SAQL. The move is part of a broader push to turn Tadawul into a default allocation in emerging market portfolios — the exchange has so far failed to get significant traction with active fund managers.

SOUND SMART- The ETF is structured as a UCITS vehicle, meaning it’s accessible to institutional and professional investors across Europe (including asset managers, pension funds, and private banks), as well as retail flows in the markets where it’s registered — a swath of Western Europe spanning 13 countries from France and Germany to Ireland.

Gulf sovereigns and state-linked issuers have quietly tapped PIMCO for more than USD 10 bn in private debt since the regional war began, Bloomberg reports — including up to USD 2.5 bn in Abu Dhabi government bonds. Top-tier Gulf issuers are paying up for discreet private credit to bridge wartime funding gaps.

Saudi’s SAR-denominated sovereign sukuk will be joining JPMorgan’s emerging markets government bond index (EMGBI) starting 29 January 2027. The sukuk will be added incrementally to EMGBI, eventually comprising 2.5% of the index. Eight Saudi sovereign sukuk — totaling nearly USD 69 bn — currently meet the requirements for inclusion.

After exiting several investments in Egypt two years ago, Kuwaiti franchise giant Alshaya Group opened its first global talent center in Cairo to manage its tech and customer service operations across MENA, according to a press release (pdf). The facility will serve as a central hub for IT solutions, digital marketing, and multilingual customer service, covering MENA, Turkey, Central and Eastern Europe, Greece, and Cyprus, it said.

Alshaya pulled back from Egypt in 2024 amid an FX crisis that saw the operator of brands including Shake Shack, Starbucks, and H&M pull back to limit its losses.

In context: The Communications and IT Ministry has been pushing hard to turn Egypt into a global destination for what the industry now calls “global capabilities centers” — what we called “outsourcing” a generation ago. Last year alone, Egyptians doing digital, back-office, and customer service work for the rest of the world brought a staggering USD 7.4 bn into the country, of which USD 4.8 bn came from outsourcing services.

Manara Minerals shifts gears: PIF-backed Manara Minerals is reportedly shifting from its global M&A agenda to pursue debt investments and JVs with global trading firms, unnamed sources told Bloomberg. This shift will see Manara prioritize loans to miners in exchange for offtake rights, securing future production benefits without requiring upfront equity.

A new school of thought for Saudi investment? The move dovetails neatly with the PIF’snew strategy to prioritize investments that directly accelerate local economic growth, which should be the hallmark of the sovereign fund’s next five years.

Dubai-based flavored tobacco giant Advanced Inhalation Rituals (AIR — get it?) is pushing ahead with a US Nasdaq listing at a USD 1.75 bn valuation via a merger with Cantor Equity Partners III, a Spac. Shareholders of the Spac will vote on12 May to merge with AIR after getting SEC clearance yesterday, per a statement. The shisha maker is seeking a USD 1.75 bn valuation in the transaction, which was first announced last November. Regional issuers had largely written off the Spac route to market back in 2023 — AIR is the latest to signal that it may be worth revisiting.

Saudi’s Sumou Holding is making its Egypt debut with an EGP 70 bn mixed-use project in New Cairo, launched via a JV between its investment arm Adeer International and Egypt’s Paragon Developments, according to a press release (pdf). Sumou Boulevard — at 500k sqm — is a template for marrying Saudi capital with Egyptian execution, and a model the two sides will look to replicate across the region.

The Egyptian government is readying big state-owned oil and gas players for possible listing on the EGX, our Egypt desk reports, saying as many as 10 petroleum-related companies could be on deck, including services giant Enppi (which has been on deck to IPO since before covid) and the General Petroleum Corporation. Administrative procedures could be in place by summer, including temporary listings, but the actual sell-downs will come one at a time as bankers test appetite and build the pool of potential strategic buyers.

MEANWHILE- CapitalMed is heading toward a 25% float on the EGX in 2Q 2026, targeting an EGP 2 bn raise, per reports in the press that confirm what former EGX head and FRA Executive Chairman Islam Azzam hinted at to EnterpriseAM earlier this year. The 144-acre Badr City medical complex — developed by Hassan El Kalla’s Egyptians for Healthcare Services (EHCS), with CIRA holding 28% — would list at around EGP 8 bn by our math.

Uhm, Enterprise… how is a preprofit venture going public? Article 7 of the Capital Market Law lets greenfield projects list without two years of audited earnings, provided they show a path to black within three.

Abu Dhabi-based AppliedAI is taking its enterprise AI model to Asia: UAE–based AI firm AppliedAI is expanding into Singapore, Malaysia, and Hong Kong this month, along with launching its latest platform Opus 2.0, according to a press release (pdf). The firm counts state AI firm G42, Abu Dhabi sovereign wealth fund Mubadala, and tech and telecom giant e& among its backers. AppliedAI is targeting regulated sectors including banking, ins., and healthcare.

These markets stand out for their regulatory depth and sector concentration, founder and CEO Arya H. Bolurfrushan tells EnterpriseAM. The operating model is intentionally hands-on, he said, adding that “AI adoption will be extremely localized […] You want folks to be in the office with you, helping you go through this, because it is your core process.”

Abu Dhabi’s Masdar and Montenegro’s state utility EPCG agreed to set up a 50/50 joint venture, which will develop large-scale renewable projects in the Balkan nation. The JV will focus on solar PV, wind, hydropower, pumped hydro energy storage, standalone battery energy storage systems, and hybrid solutions. The JV will serve domestic demand and look to export power to the Western Balkans and Southeastern Europe.

ALSO WORTH KNOWING TODAY-

Ashmore Saudi Arabia’s Education Investment Fund closed its second acquisition, buying Matrix International Schools and Wahat Al Alson School in Riyadh. The fund is working to build a scalable K-12 platform and deploy c. SAR 1 bn into the sector, with an eventual Tadawul listing potentially in the cards.

A consortium led by Samih Sawiris’ SOSTNT is deploying EUR 200 mn to restart the long-stalled Mogador resort in Morocco — joined by the UAE’s Al Nowais, Egypt’s Sunrise Resorts & Cruises, and the Orascom Construction–Besix JV, per EnterpriseAM reporting. The build lines up with Morocco’s push to hit 26 mn annual tourists ahead of the 2030 World Cup.

AD Ports Group sold three warehouses in its Kezad Logistics Park to Aldar PropertiesforAED 650 mn, completing 65% of its AED 1 bn asset-monetization target for 2026 in one go. The deal extends an asset-recycling loop between the two Abu Dhabi heavyweights — Aldar gets scaled logistics yield, AD Ports frees up the balance sheet.

Abu Dhabi healthtech conglomerate M42 pushing deeper into Latin America, with renal-care subsidiary Diaverumacquiring four dialysis clinics in Brazil’s São Paulo state. The deal brings Diaverum’s Brazilian network to 18 clinics and 220k treatments a year.

Market Snapshot

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