Tadawul to reclassify sectors under GICS by early 2017

The Saudi Stock Exchange (Tadawul) is planning to reclassify its current market sectors to match global standards by adopting the Global Industry Classification Standard (GICS) by January 2017.

The move aims to enhance transparency in the local market and allow international investors access to better information on the performance of local sectors, Tadawul said in a statement on Thursday.

Under the new system, classification limitations will be eased for new market entrants, which had been previously included in sectors that did not accurately represent their business activities.

Investors will be also able to analyze and compare the performance of different sectors with peers worldwide, which will contribute to setting sector-based investment strategies. 

GISC information and classification standards will be communicated to market participants and the public through workshops, media awareness campaigns, and the Tadawul website.