Saudi Arabia is to join FTSE Russell’s emerging market index from March 2019 in a move that is expected to bring in billions of dollars in overseas investment into the country.
The entry of the kingdom’s stock market, the largest in the Arab world with a capitalisation of roughly $500 billion, will take place in stages between March and December 2019.
Saudi Arabia will make up 2.7% of the FTSE Russell index, ranking it among the top ten emerging stock markets by size. This weighting could rise to 4.6% should the planned flotation of oil company Saudi Aramco proceed.
FTSE Russell said Saudi Arabia’s push for economic diversity via its Vision 2030 initiative was a key factor in the reclassification.
Saudi Arabia is still waiting to hear if MSCI, another index provider, will add the country to its widely followed Emerging Markets index.
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