The Saudi Stock Exchange (Tadawul) said that S&P Dow Jones Indices (S&P DJI), a leading provider of global equity indices, upgraded Saudi Arabia to "Emerging Market" from its previous "Standalone Market" country classification.

The move by S&P DJI follows the recent decisions by MSCI and FTSE Russell to add Saudi Arabia to their respective emerging market indices.

The Kingdom will become eligible for inclusion in certain S&P DJI's global benchmark index families in two phases concurring with the March 2019 quarterly rebalancing and the September 2019 annual reconstitution.

In its decision, S&P DJI cited the positive results of the Kingdom's ongoing market reforms and enhancements and a strong consensus for the upgrade among the international investment community.

Saudi stocks that are currently part of the S&P Saudi Arabia BMI will initially be eligible for phased inclusion in the S&P Global BMI, S&P Global BMI Shariah, S&P/IFCI Composite, Dow Jones Global Index and Dow Jones Islamic Market World Index. Eligibility for inclusion in other S&P DJI index families will begin in September 2019.
    
"S&P DJI's decision caps a period of tremendous progress for Tadawul and the Saudi capital market, which over the past six months have gained inclusion in all three of the preeminent global benchmark indices," said Khalid Al Hussan, chief executive officer of Tadawul.

"It is a testament to growing investor confidence in the Saudi market and reflects the successful implementation of far-ranging capital market reforms in line with Vision 2030 that have further enhanced the accessibility of Tadawul to international investors.

“While we are proud of these important milestones, they only reaffirm our commitment to continue to move forward with our ongoing efforts to strengthen the effectiveness of the Saudi capital market, foster an attractive investment climate for local and international investors and further integrate and align the Saudi capital market with global markets and best practices." – TradeArabia News Service