Tadawul/Bloomberg

Economy

Tadawul stocks set to receive $20 billion in passive inflows

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The Kingdom will be the biggest recent inclusion to the global indices, the largest of which is the MSCI Emerging Markets Index, which it joins from May.

Monday 18, March 2019 BY KUDAKWASHE MUZORIWA

Saudi Arabia's inclusion in major emerging markets stock indices from this week is expected to attract around $20 billion in passive inflows but sluggish reforms could lead some active foreign investors to steer clear, reported Reuters.

The Kingdom is expecting the inclusions into FTSE Emerging All Cap Index this week will kick-start its drive to become a major destination for foreign capital, after its global reputation was tainted by the killing of a journalist in its Turkish Consulate in October last year.

Additionally, MSCI will give the Kingdom a weight of 2.7 per cent in May, which is projected to push up foreign ownership from around two per cent, one of the lowest in the region, to around six per cent.

 

TAGS : Tadawul, MSCI Index, FTSE Emerging All Cap Index

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