- Sixth and final tranche of Saudi Arabian stocks added to FTSE Russell’s Global Equity Index Series (GEIS) completed
- 79 large, mid and small cap Saudi Arabian stocks now included at full investable weights
- Saudi Arabia constitutes 3.1% of FTSE Emerging Index and 0.35% in the FTSE All-World Index
FTSE Russell, the global index, data and analytics provider, has completed the inclusion of Saudi Arabia to the FTSE Emerging Index following the reclassification of the country to Secondary Emerging market status. The sixth and final tranche was added at an inclusion factor of 18.75% from 22 June 2020.
Following the implementation of the sixth and final tranche, Saudi Arabia equities constitute 3.1% of the FTSE Emerging Index and 0.35% weight in the FTSE All-World Index. There are 79 large, mid and small cap Saudi Arabian stocks in FTSE Russell’s FTSE Global All Cap Index as of 22 June 2020.
Waqas Samad, Group Director, Information Services, LSEG & CEO, FTSE Russell, said
“We congratulate Saudi Arabia on the completion of its inclusion to FTSE Russell global equity benchmarks. The country has introduced wide-ranging reforms in recent years to enhance market access, transparency, governance and efficiency. The demand from international investors for benchmark and analytic solutions to facilitate their investments into the Middle East region continues to grow and FTSE Russell will work with its customers to remain at the forefront of these conversations.”
Gary Rynhoud, Head of sales, Middle East and Africa said:
“FTSE Russell’s phased inclusion of Saudi Arabian equities listed on the Tadawul exchange over several tranches has been well received by international investors. We have continued to work closely with the Capital Markets Authority and Tadawul throughout the implementation phase to ensure a smooth process.”
Saudi Arabia was reclassified to Secondary Emerging market status by FTSE Russell in March 2018 after meeting the requirements for inclusion under its Equity Country Classification framework. The market authorities in Saudi Arabia implemented several market reforms including the introduction of enhancements to the Independent Custody Model (ICM) and the further opening of the Saudi Arabia capital market to Qualified Foreign Investors (QFI)
FTSE Russell’s Quality of Market Criteria can be found here and its FAQ on the inclusion of Saudi Arabian stocks can be found here.
