The new funds will give exposure to listed stocks in the cement and construction sectors.

HSBC already operates two funds - the Saudi Equity Index which includes 36 stocks from a number of different sectors, and the Saudi Petrochemical Equity Opportunity Fund which consists of 11 petrochemical firms.

Since their launch in December 2007 the two funds have attracted around of $1bn of capital between them.

Direct investment in individual companies listed on the Tadawul is prohibited for non-GCC nationals, although investment in mutual funds is permitted. The HSBC funds allow foreign investors to gain access to the Tadawul without having to set up accounts with the Capital Markets Authority, the market regulator.