Saudi aims to exit “index limbo”

Saudi_Arabian_stockA review to determine Saudi Arabia's market status could end the country's “index limbo” and entice $35 billion of inflows. Index compiler MSCI, which is considering whether to include Saudi Arabia in its widely followed Emerging Markets index, will reveal its decision in June 2018 for a potential inclusion the following year. The inflows, “would create a meaningful ripple in a market where foreign ownership is currently below 2%”, said Charles Sunnucks, a fund manager at Jupiter Asset Management, who made the prediction. “Additionally, Saudi Arabia’s index clout could rise quickly if Aramco - Saudi Arabia's crown jewel oil asset - is listed as anticipated in 2018,” he said. “Valuations for the company are extremely varied, including at the high end Saudi's own highly ambitious $2 trillion estimate, over double the size of the world’s largest listed company Apple.” Until June 2015, Saudi Arabia's stock exchange was closed to direct foreign investment. The exchange is now accessible to qualified foreign institutional investors that hold a licence. ©2017 funds global mena

Executive Interviews

INTERVIEW: Protecting the investment

Nov 23, 2017

Rasmala’s trade finance fund recently passed $100 million in assets. Doug Bitcon, head of credit strategies, explains why he has to be hands-on.

EXECUTIVE INTERVIEW: A natural interest in the topic

Mar 08, 2017

Since 2016, Guillermo Ortiz has been a chairman of Latin America’s BTG Pactual. The former central banker of Mexico talks to Nick Fitzpatrick.


ROUNDTABLE: Charting the pace of reform

Nov 23, 2017

Saudi Arabian index inclusion, the onset of taxes and the Dana Gas controversy were among the issues discussed by our cross-industry panel. Chaired by George Mitton in Dubai.


Mar 08, 2017

The move to a three-day settlement cycle, the appearance of new stock exchanges, and recent rules on hedge funds were discussed by our panel in Cape Town. Chaired by George Mitton.