Inclusion in MSCI EM index to enhance investor base, liquidity: CMA chief

The inclusion of the Saudi Stock Exchange (Tadawul) to MSCI's Emerging Market index will enhance the diversity of the investors’ base as well as the liquidity of the Kingdom's capital market, said Mohammed El Kuwaiz, chairman, Capital Market Authority (CMA).

"We, at the CMA, will continue to further develop the Saudi capital market to ensure that the market facilitates investments, promotes confidence and protects investor and market participants,” he added.

Tadawul was upgraded to Emerging Market from its previous Standalone market status by MSCI in its Annual Market Classification Review on Wednesday.

“Today’s announcement from MSCI, so close on the heels of KSA’s reclassification in the FTSE Russell Global Equity Index Series, marks the further integration of the Kingdom into global capital markets,” said Sarah Al Suhaimi, chairperson, Tadawul.

“It is the culmination of Tadawul’s ongoing efforts to work closely with Saudi regulatory authorities and leading emerging market investors to implement far-ranging reforms and market enhancements to strengthen the effectiveness of the Saudi capital market and foster an attractive investment climate for local and international investors. We are proud that these efforts have gained Saudi Arabia inclusion in the leading global indexes and benchmarks.”

Khalid Al Hussan, chief executive officer, Tadawul, commented: “Inclusion in the MSCI Emerging Market Index is an important milestone and further affirmation of the tremendous progress Tadawul has made in the past year in broadening investor access to the Saudi capital market, enhancing market efficiency and further aligning market practices with global best practices.

“Our work is never done, and additional market enhancements are in the pipeline as we continue to strengthen and grow investor confidence in the Saudi market,” he added.