AlJazira Capital: 10 Saudi firms qualify to join MSCI index

As many as 10 Tadawul-listed companies have already met the qualification criteria for joining the standalone MSCI Saudi Arabia Index that is set to launch June 1, Aljazira Capital said in a recent report.

Within Saudi Arabia’s petrochemical sector, Saudi Kayan, Sahara Petrochemicals, and Petro Rabigh are among this group as they have a combined market capitalization of $5.5 billion and a total share turnover of 27 percent.

Meanwhile, Dar al Arkan Real Estate Development Co., Taiba Holding Co., and Emaar the Economic City (Emaar EC) were also included with a total market capitalization of $5.4 billion. Share turnover for the stocks stands at 35 percent.

Dar al Arkan alone has a market capitalization of $2.3 billion, making it the fourth biggest liquid company. Its share turnover is 65 percent, while its flotation rate is 95 percent.

Alinma Bank tops the list with a market capitalization of $6.2 billion at a current share turnover of 52 percent, while its flotation rate stands at 70 percent.

Other companies include Maaden (Saudi Arabian Mining Company) Bupa Arabia and Zain Saudi.

Although there has been much anticipation surrounding the Saudi market’s opening to foreign investors on June 15, some experts say Tadawul will need to ease its regulations in order to meet the full requirements to join the MSCI emerging market index.