MSCI win signals confidence in Saudi economy: Al-Jadaan

Saudi Arabia’s upgrade to MSCI's Emerging Market (EM) index is a “significant addition” to the Kingdom, the official news agency SPA reported, citing Finance Minister Mohammed Al-Jadaan.

“Inclusion in the MSCI EM Index signals confidence in the stable and promising forecasts for the Saudi economy and its solid capital market,” he said.

“The expected participation of more foreign investors will heavily contribute to development and growth of the market,” Al-Jadaan added.

The current reforms witnessed by the Saudi Stock Exchange come in line with the Saudi Vision 2030 and the government’s strong commitment to modernize the local economy through structural reforms, which helped the market meet the best international practices and attract more local and foreign investors, the minister said.

The Kingdom will continue to build a strong equity market, so as to boost market confidence, enhance market functions to better serve the local economy and catalyze savings, finance and investments, Al-Jadaan said.

The Saudi government will continue coordinating with other competent authorities to enhance applicable regulations, so as to lure more foreign investments, he added.

The global index provider said yesterday it will include the MSCI Saudi Arabia Index in the MSCI Emerging Markets Index, representing on a pro forma basis a weight of approximately 2.6 percent of the index with 32 securities, following a two-step inclusion process.