Notice Regarding Memorandum of Understanding for Potential Business Alliance with the National Technology Group in Saudi Arabia towards the Establishment of an Exchange Traded Fund (ETF) in Japan investing in the Saudi Stock Market.
SBI Holdings, Inc (Head office: Minato-ku, Tokyo; Representative Director, Chairman, President and CEO, Yoshitaka Kitao; hereinafter the “Company”) hereby announces that it has signed a Memorandum of Understanding (hereinafter “the MoU”) for a potential business alliance with National Technology Group (Head office: Saudi Arabia; Chairman: Mohammed Rashid Al Ballaa, hereinafter referred to as “NTG”), one of the largest information and communication Technology (ICT) companies in Saudi Arabia that is actively involved in the fintech business, towards the establishment of an ETF investing in the Saudi Arabian market.
NTG was established in 1984 in Kingdom of Saudi Arabia and is one of the largest information and communication Technology (ICT) companies with 2 billion SAR (approximately JPY 80 billion) in revenue, and over 3500 employees. NTG is made up of more than 20 specialized ICT subsidiaries in Saudi Arabia, Gulf Cooperation Council (GCC), Egypt, Pakistan, Sri Lanka, and Turkey, and is actively involved in the fintech business. GTN Group Holdings (hereinafter referred to as “GTN”) is a subsidiary of NTG and operates a global trading and investment platform for institutional investors, through its hubs in the Middle East, the United States, the United Kingdom, Singapore, and South Africa.
Inspired by Saudi “Vision 2030”, the Kingdom of Saudi Arabia is experiencing economic transformation and rapid growth that is expected to continue for decades. Moreover, Saudi Exchange is the one of the largest stock exchanges in the world, with industry-leading technology and a regulatory environment. Under such environment, an ETF reflecting the performance of the Saudi Arabian market is expected to become an attractive product for Japanese investors. The Company therefore have signed the MoU with NTG for a potential business alliance towards the establishment of an ETF.
Based on the MoU the SBI Group and NTG will explore a business alliance in the following subjects.
- SBI Group, through its Asset Management subsidiary, will set up an ETF registered in Japan that will be
dedicated to investing in certain categories of stock traded on the Saudi Stock Market. - GTN will be responsible for ensuring the ETF meets Saudi Arabia’s regulatory requirements and for
providing research, execution, and settlement services. - GTN will promote the ETF globally on the GTN platform.
The scope of business alliance may be expanded beyond the subjects above, upon agreement between the SBI Group and NTG.
In the past, the Company has established investment funds with prominent local partners in the Middle East and executed investments. Most recently, the Company has signed a MoU for potential business alliances with Aramco, one of the world’s leading comprehensive energy and chemicals companies in Saudi Arabia, in December 2023. In February 2024, the Company has also established “SBI Middle East” in Riyadh as a base of operations for conducting business in the Middle East, and is working towards further expanding its businesses in the region.
Through the alliance with NTG, the SBI Group will endeavor to build a strong, flexible and synergistic relationship, contribute to the development of economic cooperation between Japan and Saudi Arabia, and promote further business expansion in the region.
【Overview of National Technology Group】
| (1) Name | National Technology Group |
| (2) Location | Saudi Arabia |
| (3) Representative | Chairman, Mohammed Rashid Al Ballaa |
| (4) Business description | Information & Communication Technology |
| (5) Year of establishment | 1984 |
| (6) URL | https://ntg.com.sa/ |
For further information, please contact;
SBI Holdings, Inc. Corporate Communications Dept., Tel: +81 3 6229-0126