Saudi Arabia's MSCI inclusion to be 'independent' of Aramco listing

Global index compiler MSCI’s decision on whether to upgrade Saudi Arabia to emerging market (EM) status will be "independent" of the stock market’s ability to absorb the listing of Saudi Aramco, Reuters reported on Thursday, citing Robert Ansari, head of MSCI for the Middle East.

“If the Aramco IPO happens, where it lists, what and how it lists is independent of what MSCI will do to classify, ” Ansari told reporters at a financial conference in Abu Dhabi, when asked if the two issues were linked.

Saudi Arabia is planning to sell a 5 percent stake in the in the world's top oil exporter in H2 2018, and the listing is expected to be the world’s largest, valued at $100 billion, Argaam earlier reported.

Aramco will be listed on the Saudi Stock Exchange (Tadawul) and possibly also in one or more foreign markets.

MSCI's decision on a potential inclusion of Tadawul on the MSCI Emerging Markets Index is expected to be issued in June.