Morgan Stanley to unveil temporary indices for Saudi MSCI inclusion soon

Morgan Stanley International is set to announce preliminary indices of the Tadawul MSCI inclusion mechanism in the coming weeks, Al-Eqtisadiah has reported, citing Kaitlin Downing, vice president of corporate communication at Morgan Stanley International.

According to the MSCI Global Investable Market Indexes method, the MSCI Saudi Arabia Index is used in a stand-alone index using the emerging market thresholds.

"This indicator can be used as the basis for an initial index, as it will help the listing of Saudi shares in investor portfolios,” Downing said.

Last week, MSCI upgraded Saudi Arabia to emerging market from its previous standalone market status in its annual market classification review on Wednesday. Saudi Arabia will represent the 25th country to be included in the index.

The decision came after Tadawul fulfilled MSCI’s requirements to join the EM index, following the reforms carried out by the Saudi regulatory bodies.