Thu, Sep 19, 2019
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Tadawul completes MSCI Emerging Market Index inclusion

Friday, August 30, 2019
Opalesque Industry Update - The Saudi Stock Exchange (Tadawul) today has completed Saudi Arabia's full inclusion into the MSCI Emerging Markets Index with the successful implementation of the second and final tranche of index inclusion, which brings the Kingdom's weighting to 2.8% of the index's total market capitalization. 31 Tadawul-listed companies are included in the MSCI Emerging Markets Index.

As Saudi Arabia is phased into the leading emerging market and global indices over the course of 2019, Tadawul trading data shows record buying of Saudi shares by foreign investors from around the world. In 2019, through July 31, trading activities of foreign investors, including QFIs, totaled in USD56 Billion, representing 21% of total market trading activities.

Khalid Al Hussan, Chief Executive Officer of Tadawul said: "Full inclusion in the MSCI Emerging Market Index represents an important milestone in advancing the Saudi capital market and further opening Tadawul to international investors, in accordance with the goals of the Financial Sector Development Program (FSDP) and Vision 2030."

He added: "Execution of index inclusion has been smooth and flawless, reflecting the success of the many market enhancements implemented by Tadawul to strengthen market infrastructure and align its regulatory and market frameworks with international best practices. At the same time, we are seeing significant investment inflows from foreign institutional investors, further supporting liquidity in what is already one of the most liquid emerging markets in the world, and expanding and diversifying opportunities for issuers and investors alike."

Henry Fernandez, Chairman and CEO, MSCI, adds, "The decision to include Saudi Arabia in the MSCI Emerging Markets Index was taken in consultation with international institutional investors. It followed a number of regulatory and operational enhancements in the Saudi Arabian equity market that effectively improved market access for such investors and we are pleased the implementation of the two-step inclusion process, starting in May of this year, has been completed."

MSCI added Saudi Arabia to its Watch List in June 2017 and the Kingdom was upgraded from Standalone Market to Emerging Market in June 2018, marking the fastest progression from Watch List to Emerging Market status of any market in the history of the index. Saudi stocks were phased into the index in two tranches with a 50% inclusion factor for each, where the implementation of the first tranche took place in May 28, 2019 and implementation of the second tranche occurred in August 28, 2019.

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Albright Capital builds on emerging markets impact strategy, signs on to IFC principles[more]

    Bailey McCann, Opalesque New York: Albright Capital has adopted the International Finance Corporation's Operating Principles for Impact Management. The firm has also developed its own impact measurement system as part of the implementation of the principles. The IFC's principles were

  2. Investing: Hedge funds getting burned as growth stocks trounced by value, Why investors are prioritizing health care in a big way, Fannie, Freddie soar as hedge funds score wins on two fronts[more]

    Hedge funds getting burned as growth stocks trounced by value From Bloomberg: A hedge-fund favorite is rapidly losing ground in the stock market just as one of the industry's least-loved sectors picks up. Growth stocks, generally companies that are seeing rapid profit increases, have drop

  3. PE/VC: Supersized unicorn: Root Insurance leaps to $3.65bn valuation with $350m round[more]

    Root Insurance is now valued at $3.65 billion after a $350 million funding round - the largest single venture capital round ever in the state. The 3-year-old auto insurer, now the startup with the highest valuation of any in Ohio, has raised a cumulative $523 million in VC and another $100 mi

  4. Testing hedge performance when stocks crash[more]

    Bonds have historically been a reliable buffer for stock exposure. But low yields and potential reversion to a more positive stock/bond correlation would likely translate to less protection. Gold has been a solid crisis hedge but has experienced long stretches of negative inflation-adjusted returns.

  5. PE/VC: The FBI is investigating a venture capital fund started by Peter Thiel for financial misconduct, Why venture capital firms need more women partners and entrepreneurs[more]

    The FBI is investigating a venture capital fund started by Peter Thiel for financial misconduct From Vox: Federal investigators are probing the conduct and practices of Mithril Capital, a venture capital firm co-founded by Peter Thiel, Recode has learned. US officials - including t