Riyadh – Capital Markets Authority (CMA) expected the domestic market to enter the MSCI after officials expressed a serious wish to add the Saudi stock market to the biggest index in the world.
MSCI will decide on Tuesday whether to include Saudi Arabia on its list for potential reclassification as an emerging market.
In this context, Mohammed bin Abdullah El-Kuwaiz, vice chairman of CMA, said that the economic reforms and the change and development operations following them on the level of the Saudi economy and stock market have increased the interest of MSCI companies in adding the Saudi stock index to the global indices that the company deals with.
Kuwaiz added to Asharq Al-Awsat that MSCI would soon announce its wish to add the Saudi stock market index to its global index.
“Taking into consideration the taken procedures, we can say that maybe by the end of 2018 there will be an actual joining to the MSCI index,” he continued.
The CMA vice chairman added that there are three global indices where joining is possible, but the greatest is the MSCI index followed by FTSE.
These updates follow huge strides taken by Saudi Arabia in the past period towards developing the capital market and increasing opportunities of enlisting it among global markets’ indices, knowing that the kingdom earlier eased restrictions on foreign capital, in addition to implementing international accountability standards on company lists.
CMA works closely with individual investors and investment funds in the domestic market by which it launches a draft of its new resolutions for investors to vote on.