23/02/2018 06:40 AST

The global index provider MSCI’s decision to include Saudi Arabia in its emerging market index is independent of its stock market’s ability to absorb the estimated $100 billion initial public offering of Saudi Aramco, the world’s biggest oil producer, MSCI’s regional chief said.

“The Aramco IPO and the decision by MSCI is completely exclusive – independent of one another. So whether or where it lists, or how it lists is independent of how MSCI will do its decision to classify Saudi Arabia,” Robert Ansari, an executive director and head of Middle East at MSCI told reports on Thursday in Abu Dhabi

“On paper, everything Saudi Arabia had to do has been done." He added that MSCI’s decision is contingent on how well the structural changes the kingdom has implemented in its financial market are performing and what is the investor feedback to them.

MSCI, whose emerging market gauge is tracked by fund managers with $1.7 trillion in assets, will announce a decision on whether to upgrade Saudi stocks to EM status in June after the index provider put the country’s market on a watchlist for inclusion last year.

The much-anticipated upgrade follows a series of market reforms initiated by the kingdom, the world’s biggest oil exporter and the region’s top economy, designed to attract international institutions through the easing of ownership requirementsof equities by foreign investors, reducing settlement cycles, and introducing short-selling.

If the kingdom did not get a nod from investors in June and remained on the watchlist, it will again be reviewed for inclusion in November 2019, Mr Ansari said on the sidelines of the Mena Investment Congress.

Saudi Arabia could account for a 2.5 per cent weight of MSCI’s emerging market gauge and if Saudi Aramco's IPO happens as planned in 2018, the anticipated weight would almost double to about 5 per cent, he noted.

If Saudi Arabia gets the nod in June this year that it will be part of emerging market index, that decision would become effective in June 2019. If the Aramco IPO happens in the meantime and is deemed an “eligible security” it could be a part of the MSCI’s index when it launches in 2019, he added.

The National

Aramco’s US$7bil investment in Rapid by end of the month


The negotiation on Saudi Arabia Aramco’s US$7bil investment in Petroliam Nasional Bhd’s (Petronas) Refinery and Petrochemical Integrated Development (Rapid) project in Pengerang, Johor, has been conc

The Star

Why a domestic listing for Saudi Aramco is back on the agenda


Saudi Arabia has not yet decided on the international venue for the dual-listing of oil major Saudi Aramco, with London, New York, Singapore, and Hong Kong all vying for the prestigious IPO. Such a d

The National

Saudi Aramco supports Women in Leadership forum


Saudi Aramco participated as a lead sponsor in the Women in Leadership Economic Forum titled “Let’s Talk About Tomorrow,” which opened today (March 19) in Riyadh, Saudi Arabia.

The forum b

Trade Arabia

Ticker Price Volume
QNBK 135.21 176,223
SABIC 112.60 2,768,748
STC 81.00 392,859
ALMARAI 54.20 393,286
WALAA 33.20 288,896
BURUJ 34.30 13,479
EEC 15.20 834,539
Ticker Price Change
GLOBAL 0.00 0.00 (0.00%)
MARIN 0.00 0.00 (0.00%)
AINV 0.00 0.00 (0.00%)
TII 0.00 0.00 (0.00%)
IIC 0.00 0.00 (0.00%)
UDC to launch island project in QR5.5bn expansion plan


United Development Company, the master developer of The Pearl-Qatar, will be launching a new state-of-the-art island project as part of UDC’s QR5.5bn estimated investment for the next five years.

Gulf Times

Masraf Al Rayan launches Qatar ETF


Qatar’s first Shari’a-compliant exchange traded fund and arguably, the largest single-country Shari’a compliant ETF in the world was listed on Qatar Stock Exchange (QSE) yesterday. The Al Rayan Qatar

The Peninsula

QIIB announces appointment of Qataris as top executives


QIIB has announced the appointment of Sheikh Abdulaziz bin Abdullah bin Faisal Al Thani, as the Chief- Corporate Banking Sector and Sheikh Mohammed bin Ali Al Thani as Chief-Treasury & Investments. T

The Peninsula

Crescent, Dana to raise Kurdistan gas production


Pearl Petroluem, a consortium led by Crescent Petroluem and Dana Gas, on Wednesday said that it has signed a 10-year gas sales agreement with the Kurdistan regional government.

Under the ag

Gulf News

HSBC Bank Oman marks 70 years in Oman


Celebrating 70 years of supporting Oman’s economic growth and development is the focus of a series of roadshows launched this week at HSBC Bank Oman’s branches across the country to mark the bank’s m

Oman Daily Observer