Why the Saudis' MSCI Bid Matters And What They've Done to Get It - Bloomberg

Why the Saudis' MSCI Bid Matters And What They've Done to Get It - Bloomberg:

"Saudi Arabia wants foreign money, and it’s been overhauling one of the world’s most conservative financial markets to get it.

Thursday marks the second anniversary of the kingdom’s decision to allow money managers outside the Gulf to trade Saudi shares directly. Since that announcement, authorities have relaxed the guidelines even more, yet total foreign ownership has languished at about 5 percent, and the equity market’s capitalization has fallen by about $140 billion in two years to $439 billion.

As part of its plan to revamp the economy and reduce dependence on oil revenue, Saudi Arabia is now seeking inclusion in MSCI Inc.’s emerging-market gauge. A decision from MSCI on whether the kingdom is on the index provider’s review list is due next month."



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