The Saudi Stock Exchange (Tadawul) today has completed Saudi Arabia’s full inclusion into the MSCI Emerging Markets Index with the successful implementation of the second and final tranche of index inclusion, which brings the Kingdom’s weighting to 2.8% of the index’s total market capitalization. 31 Tadawul-listed companies are included in the MSCI Emerging Markets Index.
As Saudi Arabia is phased into the leading emerging market and global indices over the course of 2019, Tadawul trading data shows record buying of Saudi shares by foreign investors from around the world. In 2019, through July 31, trading activities of foreign investors, including QFIs, totaled in USD56 Billion, representing 21% of total market trading activities.
MSCI added Saudi Arabia to its Watch List in June 2017 and the Kingdom was upgraded from Standalone Market to Emerging Market in June 2018, marking the fastest progression from Watch List to Emerging Market status of any market in the history of the index. Saudi stocks were phased into the index in two tranches with a 50% inclusion factor for each, where the implementation of the first tranche took place in May 28, 2019 and implementation of the second tranche occurred in August 28, 2019.