The Saudi Stock Exchange, or Tadawul, has announced plans to launch an ESG index in partnership with index provider MSCI.
The new index, which will include 70 locally listed companies, is expected to go live in either the last quarter of 2020 or first quarter of 2021.
“Globally we understand that ESG is becoming an investment requirement and we don’t want to be behind this in the Saudi market,” said Khalid Al-Hussan, chief executive at the Saudi stock exchange, Reuters reported.
Saudi’s capital markets have introduced a number of new features and services in order to attract more foreign investor inflows, especially following the country’s inclusion in a number of emerging markets indices earlier this year.
Back in July, Tadawul announced the introduction of an exchange-traded derivative market
which is now set to launch on August 30.
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