Low market liquidity in the United Arab Emirates and Qatar's failure to raise foreign ownership limits threaten to deny MSCI emerging market status to the Gulf neighbours for a third time on Wednesday.
Index provider MSCI rates both the UAE and Qatar as frontier markets. It opted not to upgrade the pair at its reviews in 2009 and 2010, and was due to taken a decision in June this year but postponed its verdict to Dec. 14.
It said the delay was partly to allow market players more time to assess new delivery-versus-payment (DvP) settlement systems, which some of the bourses introduced in 2011.
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