Morgan Stanley Capital International (MSCI) has announced that it will include the Boursa Kuwait in the MSCI Kuwait Index in its 2019 Annual Market Classification Review for a potential reclassification from Frontier Markets to Emerging Markets status.

MSCI is one of the world’s top providers of research-driven insights and tools for institutional investors.

The reclassification from frontier to emerging markets is a major achievement for any country which typically brings with it large capital inflows from international investors.

MSCI said it will consult with market participants on the proposed reclassification of the Index and announce its decision in June next year for potential implementation with the May 2020 Semi-Annual Index Review.

The simulated MSCI Kuwait index would have a potential weight of 0.3 per cent in the MSCI Emerging markets index, said a statement from Boursa Kuwait.

The process of the annual market classification review will be completed within one year. It will be based on three criteria in analysing and seeking feedback: the country’s economic development; size and liquidity requirements for listed companies; as well as market accessibility.

Boursa Kuwait CEO Khaled AbdulRazzaq Al Khaled said: "This announcement is a fitting testament to the progress of Boursa Kuwait’s market development plan, while also highlighting the most recent upgrades implemented by the exchange."

In 2017, the Financial Times Stock Exchange (FTSE) Russell Governance Board added Kuwait to its Secondary Emerging Market Index. The updated entry will take place in two equal stages in September and December this year.

Since its establishment in 2014, Boursa Kuwait has been committed to raising the standards of the Kuwaiti capital market, facilitating the development of a sound, internationally recognized, leading regional stock exchange.-TradeArabia News Service