Global index provider FTSE Russell said it launched its FTSE Saudi Arabia Inclusion Index Series, in response to regional growth and the opening of the Saudi Arabia capital market to qualified foreign investors (QFI).
“The Saudi Arabia inclusion indexes are a very positive step for the market and country as a whole and we will now begin work with institutional and market practitioners to prepare for the anticipated classification of Saudi Arabia as a Secondary Emerging market,” said Mark Makepeace, CEO of FTSE Russell.
The indexes can be used as a transitional tool in preparation for the potential inclusion of Saudi Arabia in the widely-followed FTSE Global Equity Index Series (FTSE GEIS).
“We are firmly committed to the growth and development of the financial markets in Saudi Arabia and have undertaken wide-ranging reforms to enhance market access, transparency, governance and efficiency,” said Khalid Al-Hussan, CEO, Tadawul.
Saudi Arabia has taken a number of steps to increase the openness and effectiveness of its markets.
As a result of these reforms, Saudi Arabia is anticipated to meet the requirements for inclusion as a Secondary Emerging market from early 2018 following the implementation of further enhancements to the Independent Custody Model (ICM).
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