Investors enthusiastically pumping capital into emerging markets have largely avoided Gulf bourses, mainly because of the “frontier markets” status accorded them by MSCI Barra, the influential index provider. But some experts say this could be about to change.
Qatar and the United Arab Emirates have been under review for an upgrade to MSCI’s Emerging Markets index for several years, but have thus far been denied. A number of reasons are cited, such as foreign-ownership limits and a delay between payment for a stock and receipt of the underlying share.
MSCI Barra’s decision is not due until June, but speculation is mounting that the two markets will be upgraded, according to analysts and fund managers.
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