Al Rajhi Capital expects Saudi Re, Rasan to join FTSE Russel index

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Saudi Reinsurance Co. (Saudi Re) is highly likely to be included in the FTSE Saudi Arabia All Cap index during its semi-annual review for March 2025, Al Rajhi Capital said in a report.

This comes as a result of the insurer’s investable market capitalization inclusion level, which is significantly above the threshold.

Rasan Information Technology Co., however, has a low probability of inclusion as its free float-based market cap is only marginally above the threshold, the report added.

On the other hand, Herfy Food Services Co. is highly probable exclusion candidate, while Sinad Holding Co., Najran Cement Co., Northern Region Cement Co. and Zamil Industrial Investment Co. are also at risk of deletion with varying probabilities. Post transition to the Main Market in December 2024, the report expects Jahez International Co. for Information Systems Technology to be included in the upcoming quarterly review (June 2025) once it satisfies the minimum three-month trading requirement.

Additionally, following the news of the regulator allowing foreign ownership in listed real estate companies based out of Makkah and Madinah, Jabal Omar Development Co., Makkah Construction and Development Co., and Taiba Investments Co. reasonably satisfy the inclusion requirements, expecting the inclusion of these securities only in the next semi-annual review in September 2025 as quarterly reviews only consider new IPOs, the brokerage added.

Based on Al Rajhi Capital’s calculations, Saudi Re’s estimated inflows stand at $28.2 million, which implies one day to cover the inflows.

The following table shows expected inflows and outflows for a number of companies in the FTSE Russel semi-annual review:

Al Rajhi Capital - FTSE Russel 11/2/2025