Tadawul inclusion in S&P EM index to boost investor confidence: CEO

The inclusion of the Saudi Stock Exchange (Tadawul) in Emerging Market index by S&P Dow Jones Indices (S&P DJI) will boost investor confidence in the equity market and signal the Kingdom’s position among the world’s biggest and most liquid markets, Khalid Al Hussan, CEO, Tadawul, said on Thursday.

This upgrade along with Tadawul’s inclusion in FTSE Emerging index and MSCI Emerging Market Index reflected the reforms that have been implemented by the Saudi authorities over the last six months.

“We’ll continue to further develop the Saudi capital market to promote confidence of local and foreign investors, and enhance the local equity market position,” Al Hussan added.

Yesterday, index compiler S&P Dow Jones Indices said it will change the status of Saudi Arabia’s bourse from a stand-alone market to an emerging market, following similar moves from MSCI and FTSE.

It will add Saudi stocks with a 50 percent weighting on its global index in March 2019.