HSBC Plans Its First Persian Gulf Shariah ETFs: Islamic Finance
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HSBC Holdings Plc, the second-largest underwriter of Islamic bonds, plans to start its first Shariah-compliant exchange traded funds in the Persian Gulf, a region that is struggling to lure international investors.
ETFs may help local markets attract some of the $49.4 billion that EPFR Global says poured into emerging market stock funds this year. Restrictions on foreign participation in Gulf markets range from bans to caps on ownership. Investors have sidestepped most countries in the Middle East and North Africa during a recent surge in capital inflows to emerging markets because of debt restructurings, the International Monetary Fund said in a report released yesterday.