#Japan #Tokyo #ETF #Asset Management One #Albilad Capital

A Strategic Collaboration for ETF Development in Japan and Saudi Arabia

Asset Management One, a premier asset management company based in Tokyo, Japan, has signed a memorandum of understanding with Albilad Capital, the leading ETF management company in Saudi Arabia, and Asset Management One International Ltd. (AMOI), headquartered in London. This partnership is centered around the creation and management of a new ETF that will be listed on the Saudi Arabian market, specifically designed to invest in Japanese stocks.

The memorandum outlines a cooperative framework where Albilad Capital will act as the managing company for the initiative, facilitating Saudi investors' access to Japanese stocks through an ETF compliant with Sharia law, referred to as the Shariah Japan Equity ETF. Asset Management One is tasked with the setup and management of this ETF, further enhancing investment variety for Saudi investors through direct access to Japanese equities.

Both companies aim to have this Saudi Arabian ETF listed on the Saudi Stock Exchange by the end of 2026, with plans to further expand their cooperation to include the development of additional investment products that would provide innovative and value-added solutions for investors.

Asset Management One has already made strides in bridging investment opportunities for Japanese investors through its Saudi Arabian equity index-linked ETF named “One ETF FTSE Saudi Arabia Index,” which was launched on December 4, 2024. This ETF allows Japanese investors to tap into the Saudi Arabian market, and the new partnership will reciprocate that dynamic, offering Saudi investors a direct investment option in Japanese stocks.

The collaboration between Asset Management One, Albilad Capital, and AMOI signifies a noteworthy step toward enhancing economic relations between Japan and Saudi Arabia. The three companies are committed to serving as a bridge for international asset management and contributing to the economic development of both countries.

Key Aspects of the Partnership

This partnership not only marks a significant milestone in asset management but also reflects a growing trend of cross-border investment collaboration, particularly between developed and emerging markets. Asset Management One, with its robust operational capabilities and extensive experience, will leverage its expertise to ensure the success of the ETF initiative while Albilad Capital brings its strong local presence and market knowledge to the table. AMOI will assist in aligning the operational practices and compliance standards across jurisdictions, ensuring that the product meets the expectations of both Saudi and Japanese investors.

Both firms are optimistic about the outcomes of this partnership, believing that the synergy created will offer unique investment opportunities that were previously unavailable. This partnership is a testament to the evolving landscape of global finance, where collaboration can lead to innovative solutions that cater to the growing demand for diversified investment portfolios.

Regulatory Considerations and Investor Awareness

It is crucial for potential investors to understand that this memorandum serves as a foundation for developing new product offerings rather than a direct investment solicitation. Investors should be aware that investments in mutual funds are not guaranteed by deposits or insurance policies. As with any investment, there is the possibility of capital loss, and assets may decrease in value. Prospective investors are encouraged to thoroughly review and understand the terms and risks associated with these new investment products before proceeding.

As of June 2025, Asset Management One has an impressive asset under management total of approximately 72 trillion yen, demonstrating its strong position in the Japanese market. The company's commitment to empowering investors through carefully curated investment strategies aligns perfectly with the goals of this new collaborative venture.

In conclusion, the establishment of this ETF aiming to connect Saudi investors to the Japanese market is a promising development. With careful planning and strategic execution, this partnership has the potential to greatly benefit investors in both regions, opening doors to a diverse array of investment opportunities. The commitment of all parties involved serves as a model for future collaborations in the global investment landscape.