Thursday 16 December 2021

MSCI considers new region for Israeli index, with potential windfall | Reuters

MSCI considers new region for Israeli index, with potential windfall | Reuters

Global index provider MSCI is considering reassigning Israel to a new region, likely Europe, which would open the door to large amounts of passive inflows for the Israeli market.

MSCI, which provides equity, fixed income and hedge fund indexes, upgraded Israel from an emerging to developed market in 2010. It is the only country in the Middle East in that category and MSCI is now seeking market feedback on whether it should be regionally classified elsewhere.

Israel's security regulator cited MSCI as saying it was focusing on a reassignment for Israel to Europe, which would expose Israel's capital market to billions of dollars of possible new investment.

"The MSCI Israel Index has more economic exposure to Europe than to the Pacific and Middle East regions," MSCI said, noting the most exposure still comes from North America.

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