Global index provider MSCI Emerging Markets has announced the inclusion of the Saudi Stock Exchange (Tadawul) in its Global Emerging Markets Index, which will qualify the Saudi Stock Exchange as an emerging market after being a standalone market for MSCI.

The Saudi Stock Exchange will be included in the MSCI Emerging Markets Index in two phases. <The inclusion of the Saudi Stock Exchange in the MSCI index will be done in two stages: The first during the semi-annual index review in May 2019, and the second during the third quarter review in August 2019. This is the second inclusion in a global index after the FTSE Russell Group, which included the Saudi Emerging Markets Market in its global index last March.

As part of its announcement, the Saudi Stock Exchange (SSE) will be included in the MSCI World Index. <In its announcement, the global index provider MSCI praised the tangible developments and efforts made by Tadawul and the Saudi Capital Market Authority over the past year since the Saudi Stock Exchange joined the index's watch list in June 2017, as the Saudi Stock Exchange was able to meet the global criteria set by the index for classification as an emerging market in addition to achieving positive achievements including increasing the percentage of foreign ownership limits, easing registration procedures for foreign qualified investors, improving clearing and settlement procedures and enabling market lending and borrowing of securities and covered short selling.</ The announcement indicated that 32 companies listed on the Saudi Stock Exchange are candidates for inclusion in the index, and that the potential market weight in the index will be 2.6%.

The announcement indicated that 32 companies listed on the Saudi Stock Exchange are candidates for inclusion in the index, and that the potential market weight in the index will be 2.6%. The Chairman of the Capital Market Authority (CMA), Mohammed bin Abdullah Al-Qwaiz, expressed his delight at the Saudi stock market joining the MSCI Emerging Markets Index.

Al-Qwaiz emphasized in the announcement that the Saudi stock market is a candidate for inclusion in the index. In a statement on this occasion, Al-Qwaiz emphasized that this achievement will support the expansion of the investor base in the financial market and improve liquidity levels, pointing out that the CMA is continuing to implement its strategic initiatives to ensure a financial market that is easy to finance, stimulates investment and supports the confidence of its dealers.

Mr. Al-Qwaiz also congratulated the President of the Capital Market Authority on joining the MSCI Emerging Markets Index. <For her part, Tadawul's Chairman Sara bint Jammaz Al Suhaimi congratulated the Saudi Stock Exchange on joining the MSCI index. She said in a similar statement, “This success came shortly after another milestone, joining the FTSE Russell Emerging Markets Index, which reflects the competitiveness of the Saudi financial market at the level of global financial markets,” stressing that these successes were reached as a result of the concerted efforts of Tadawul, the CMA and other relevant authorities to enhance the efficiency of the financial market and support building an attractive investment environment for local and foreign investors.

In a similar statement, the CEO of Tadawul, Ms. Sara bint Jameez Al Suhaimi, congratulated the Saudi Stock Exchange for joining the MSCI index. For his part, Tadawul's Executive Director Khalid bin Abdullah Al-Hassan emphasized that the decision to join the Saudi Stock Exchange as an emerging market in the MSCI index reflects the impact of the developments achieved in facilitating investors“ access to the financial market, improving market efficiency and applying global best practices.

<In a press statement, Al-Hassan drew attention to the fact that the efforts, God willing, will not stop at this limit, but the accession will be an incentive to continue the development plans to enhance the confidence of market participants.

Minister of Trade and Investment Dr. Majid bin Abdullah Al-Qasabi stressed that MSCI's inclusion of the Saudi market among emerging markets is a reflection of what the Saudi financial market has reached and the efficiency it has achieved to reach the ranks of global markets.

Minister of Trade and Investment Dr. Majid bin Abdullah Al-Qasabi said <The Minister of Trade and Investment explained that joining the global emerging market indices enhances liquidity in the Saudi financial market by increasing investments, and contributes to the diversification of investment opportunities for issuers and investors, which would increase market stability and progress, which comes as a reflection of Vision 2030 towards building an advanced financial market open to the world, enhancing its role as a leading financial market and investment center regionally and globally at the level of the Gulf, Middle East and North Africa.
Al-Qasabi praised the positive developments achieved by the Saudi Stock Exchange in meeting the criteria for joining global indices for emerging markets, including FTSE Russell and MSCI, which reflects the growing investor confidence and the size and pace of improvements achieved in the Saudi financial market in line with Vision 2030, pointing out that this step will have a great impact to stimulate companies and the private sector by increasing the size of investment opportunities directed to them, enhancing liquidity in the financial market and fair valuation of company shares, as well as the presence of national companies and their investment products in the global markets For his part, Minister of Finance Mohammed bin Abdullah Al-Jadaan said that the inclusion of Saudi Arabia's financial market in the MSCI Emerging Markets Index is a landmark addition to the Saudi market.

”These reforms in the Saudi financial market are in line with Vision 2030 and the government's strong commitment to modernize the Saudi economy through comprehensive reforms, which have contributed to providing the market with the best international standards, making it more attractive to both local and foreign investors.”

His Excellency said: ”The inclusion of the Saudi Arabian financial market in the MSCI Emerging Markets Index is a significant addition to the Saudi market. “We will continue to build a financial market where law enforcement is strengthened, investor confidence rises, and market functions develop steadily to serve the Saudi economy while working to stimulate savings, financing and investments.”

The Minister of Finance explained that this listing confirms confidence in the stable and promising outlook of the Saudi economy and the strength of its financial markets, and the expected participation of a larger number of international investors will contribute significantly to the growth, development and maturity of the market, and the government of the Custodian of the Two Holy Mosques - may God protect it - will continue to work with all relevant stakeholders to continue to improve the applicable regulations and systems to facilitate foreign investments that follow MSCI and other indices.

For his part, the Minister of Economy said that the listing of the MSCI indexes will strengthen the application of the system and increase investor confidence. For his part, Minister of Economy and Planning Mohammed Al-Tuwaijri said that MSCI's announcement of the Saudi stock market's inclusion in the Emerging Markets Index is a new testimony to the developments achieved by the Kingdom in its financial market in light of the objectives of the Kingdom's Vision 2030.

For his part, Minister of Economy and Planning Mohammed Al-Tuwaijri said. He explained that this accession came as a result of a number of measures taken to develop the Saudi financial market and make it competitive with the most advanced and open markets, by adopting regulatory frameworks in line with international best practices, in terms of governance, transparency and disclosure as well as the ease and freedom of capital flow, which helps attract global as well as local investors.

Tuwaijri said that the MSCI's announcement of the Saudi financial market and its inclusion in the Emerging Markets Index is a new testimony to the Kingdom's developments in its financial market in light of the objectives of the Kingdom's Vision 2030. <Joining the global emerging markets indices, which is one of the most important benchmarks for the performance of emerging market funds, enhances liquidity in the Saudi financial market by increasing foreign investments, and contributes to the diversification of investment opportunities, which would increase confidence in the market, its stability and development, and the development of the financial market and the financial sector in general is one of the most important enablers of economic growth by providing financing and raising investment efficiency to achieve the desired economic diversification and put the Kingdom in its proper place on the global economic map as an attractive investment destination. It also provides the opportunity for investors around the world to participate in the Kingdom's economic successes.

This achievement is noteworthy. It is noteworthy that this achievement comes within a number of efforts and initiatives under the Financial Sector Development Program, one of the programs to achieve the Kingdom's Vision 2030, and the Saudi Stock Exchange is the largest financial market at the level of the Gulf and the Middle East and North Africa, and its accession after one year after being placed in the follow-up list is the shortest period for any country in the follow-up list in the history of this index.