Tadawul successfully completes inclusion on MSCI with 31 new listed firms

Saudi Arabia’s stock exchange, Tadawul, has officially completed its full inclusion on the MSCI emerging markets index, today on August 29, 2019.

Saudi Arabia’s stock market — the largest in the region, worth approximately $549 billion — will have a weight of 2.8% on the MSCI index, as shares of 31 new listed companies will be incorporated into the index provider.

Tadawul’s inclusion on the MSCI Emerging Market Index was implemented in two phases in May and August, 2019. 

Foreign investors, as a result, executed around SAR 211.67 billion worth of trades year-to-date, representing 21 percent of the market total transactions. 

The Kingdom attracted $18 billion in foreign portfolio equity inflows so far this year, as foreign investors significantly increased their exposure to Saudi equities ahead of the MSCI upgrade. The kingdom received more than $4.5 billion in foreign equity inflows in May and $2 billion in the first three weeks of August, according to previous news reports.

“Tadawul inclusion into the MSCI boosts the market’s position, rendering it more attractive for investments, in line with Saudi Vision 2030,” stated chief executive officer, Khalid Abdullah al-Hussan, adding that Tadawul’s successful upgrade echoed the market’s latest improvements, in line with the best global criteria.

 “Tadawul’s inclusion into the MSCI was applauded by foreign investment institutions, upon Tadawul latest enhancements,” stated Henry Fernandez, Chairman and CEO, MSCI.