“This is a significant milestone for the Saudi Capital market. The MSCI EM index is tracked by almost $1.9tn, of which 80% is actively traded. The pro forma weight of the MSCI Saudi Arabia Standard Index in MSCI Emerging Markets as of Feb 9th 2018 was 2.3%, with a free float‐adjusted market capitalization of USD124.1bn.
The reforms of the Saudi capital market, guided by Vision 2030, and the Government’s strong commitment to modernize the Saudi economy through comprehensive reforms, have aligned the market with international best standards making it more attractive to both domestic and foreign investors. We will continue to build a law-based capital market to further strengthen investor confidence and steadily enhance market functions to serve the Saudi economy while stimulating savings, financing and investments.
This inclusion affirms confidence in stable and promising prospects for the Saudi economy and the strength of its financial markets. The anticipated participation of more international investors will significantly contribute to the growth, sophistication and maturity of the market. Saudi authorities will continue working with all relevant stakeholders to further improve applicable rules and regulations to facilitate foreign investments through tracking MSCI indices and various gateways."