• Saudi Arabia joining the FTSE market will raise liquidity and set the preferred stocks


               Futsi Russell, in its annual review of 2017 for the classification of international equity markets, announced the postponement of the Saudi market to secondary emerging markets. Foreign investors, in addition to contributing to raising liquidity rates.
    Dr. Salim Baajajah, lecturer at the Faculty of Administrative and Financial Sciences at Taif University, said that joining the FTSE index will boost foreign investors access to the market. There will be selected stocks by investors, which will lead to high liquidity, indicating that the accession will have a positive impact. enhancing confidence by domestic and foreign investors more in the market.
    He pointed to the Kingdom's recent reform package on the capital market, including the introduction of the new pricing unit, facilitating entry of foreign investments into the market, launching a "NOMW" market, profitability standards for losing companies and applying international standards.
    For his part, Ahmed Al Malki, an economic analyst, explained that the most important reasons for postponing the inclusion of the Saudi market for the FTSE index of emerging markets, the independent depository model, in addition to the market needs to improve procedures for entry of qualified foreign investor.
    "FTSE is the world's second largest, most heavily weighted and used index, with the MSCI Index, the index that announced the start of the Saudi stock market," Al Maliki said.
    FTSE Russell decided to evaluate the Saudi market accession in March 2018. She explained that the Saudi market has seen an improvement in the fulfillment of requirements to join the Emerging Markets Index, but there is still some reservation in terms of independent conservation model.
    The Kuwaiti market was added to the emerging emerging markets index, making the Kuwaiti market the fourth Arab market to join the emerging indices.

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