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.
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
Kuwaiti market was added to the emerging emerging markets index, making
the Kuwaiti market the fourth Arab market to join the emerging indices.