MSCI says decision on Saudi Arabia upgrade on June 20

The global index compiler MSCI will announce a decision on the potential upgrade of Saudi Arabia to an emerging market status on June 20, as part of its 2018 Annual Market Classification Review.

Last June, the Saudi benchmark was added to a watch-list for possible inclusion in MSCI Emerging Markets index, after the country passed a series of market reforms, including easing foreign ownership requirements, reducing settlement cycles and introducing short-selling.

MSCI estimated 32 major Saudi stocks would gain emerging market status, giving the country a potential weight of 2.3 percent in its index.

The upgrade will be carried out in two phases; the first one during the semiannual review in May 2019, and the second during the quarterly review in 2019.

In March, Saudi Arabia’s stock market was included in the FTSE Russell emerging market index and will join starting March next year, while S&P Dow Jones Indices (S&P DJI) said it began consulting investors for a potential upgrade for Saudi Arabia to emerging market status.