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

Saudi Aramco eyes partnerships as it expands refining, petrochems

13/06/2018

Saudi Aramco plans to boost investments in refining and petrochemicals to secure new markets for its crude, and sees growth in chemicals as central to its downstream strategy to lessen the risk of a

Arab News

Halliburton wins Aramco’s unconventional gas contract

28/05/2018

Saudi Aramco, a global leader in energy and chemicals, has signed the Unconventional Gas Stimulation Services contract with Halliburton, a US-based oil field services company to further improve Aramc

Trade Arabia

Aramco awards contract for Haradh, Hawiyah projects

24/05/2018

Saudi Aramco has awarded a contract for a permanent communications system serving its Haradh Increment to Networks & System Integration as part of Aramco’s Gas Compression Program in Haradh and Hawiy

Trade Arabia

Ticker Price Volume
WALAA 28.15 175,461
TAWUNIYA 71.70 246,979
SABIC 128.60 1,877,983
QNBK 154.00 316,895
SAICO 15.12 141,192
KAYAN 14.90 8,193,872
BURUJ 31.75 85,667
Ticker Price Change
FOOD 0.00 0.00 (0.00%)
Fitch upgrades outlook of Doha Bank to stable

24/06/2018

Fitch Ratings has upgraded the outlook of Doha Bank from negative to stable and affirmed the long-term Issuer Default Ratings (IDR) at ‘A’, it was announced in a statement.

“The upgrade to

Gulf Times

Bahrain Islamic relaunches premium banking services

24/06/2018

Bahrain Islamic Bank (BisB) has announced the relaunch of its Al Thuraya Premium Banking Services with a selection of new unique features tailored to cater to the needs of High Net Worth Individuals

Trade Arabia

Barwa Bank and International Bank of Qatar in advanced merger talks

21/06/2018

Qatari lenders Barwa Bank and International Bank of Qatar are in advanced talks to merge after discussions for a three-way merger with another bank collapsed last week, sources told Reuters on Wednes

The Peninsula

Aldar picks Marriott to manage Abu Dhabi luxury hotel

21/06/2018

Aldar Properties, a leading developer in Abu Dhabi, UAE, said it has signed up global hospitality giant Marriott International to manage one of its most strategically located hotels on Yas Island.

Trade Arabia

SABIC takes part in IFA Conference in Berlin

20/06/2018

SABIC participated in the 86th annual conference of the International Fertilizer Association (IFA) in Berlin on June 18-20 as the Gold sponsor to underline the vital role played by the company in mee

Saudi Gazette