U.A.E. Gets First Emerging Market Status at FTSE Group as Stocks Rebound - Bloomberg

FTSE Group will be the first to categorize the United Arab Emirates as an emerging market, helping attract part of the $3 trillion of funds that track the London-based index compiler’s benchmarks.

The classification will “have a significant impact, not only on the U.A.E.’s investment flows but to investment portfolio’s holding emerging markets stocks globally,” Jonathan Cooper, FTSE’s managing director for Middle East and Africa, said in an interview. The Gulf Arab country will be classified as a secondary emerging market, and the shares of 21 companies, including Emaar Properties PJSC, will be added to the FTSE’s Global Equity Index after the close on Sept. 17.

Stock brokers in the U.A.E. are struggling to make ends meet as trading volumes tumbled to the lowest in four years, forcing some to close. At least 12 brokerages in the U.A.E. have submitted requests to the Securities and Commodities Authority to suspend operations this year. The U.A.E., which has a frontier market status at MSCI Inc., will remain under review for a potential reclassification to emerging markets, the index provider said in June.