The Saudi Stock Exchange (Tadawul) could attract SAR 150 billion ($40 billion) worth of foreign fund inflows following its inclusion in MSCI's Emerging Market index, Mohammed bin Abdullah El-Kuwaiz, chairman of Capital Markets Authority (CMA), said on Thursday.
Khalid Al Hussan, chief executive officer, Tadawul, added that approximately 25-30 percent will be passive funds, while the remaining will be active.
Meanwhile, El-Kuwaiz said the exchange’s MSCI upgrade will further increase the attractiveness of Saudi Aramco's proposed initial public offering (IPO).
“The listing depends on the company's readiness and valuation for the deal,” he said, asserting the CMA is making sure that the necessary framework is in place for the IPO.
Tadawul was upgraded to Emerging Market from its previous Standalone market status by MSCI in its Annual Market Classification Review on Wednesday.
Write to Reem Abdellatif at reem.a@argaam.com
Comments
{{DisplayName}}
{{ElapsedTime}}