Tadawul's MSCI upgrade to attract $40bln of foreign inflows | ZAWYA MENA Edition

Tadawul's MSCI upgrade to attract $40bln of foreign inflows | ZAWYA MENA Edition:

Saudi Arabia’s stock market joined the MSCI emerging market (EM) index at the close of the trading session on Tuesday. A total of $40 billion of foreign fund inflows is expected to come into the market from the inclusion, an analyst told Zawya.

The kingdom's stock exchange (Tadawul) is the Arab world’s largest bourse with a total market capitalisation of over half a trillion dollars.

“There has been more than $8.6 billion of foreign inflows into Saudi since the beginning of 2019 and we expect a total of $40 billion to come into the market as a result of Saudi’s inclusion in the MSCI Emerging Markets Index,” Salah Shamma, head of investment, MENA, at Franklin Templeton emerging markets equity, told Zawya by email.