The addition of Saudi Arabia to the MSCI Emerging Markets index could see the launch of ETFs and open-ended funds investing directly in the country.
It was announced last night that Saudi Arabia would be added to the MSCI Emerging Markets for the first time. Previously it was only possible to invest in Saudi Arabia directly due to its size, which prohibited it from being added to the Frontier Markets index as it would have comprised 80% of the index, rendering it unstable. Sebastian Lieblich, managing director and global head of equity solutions at MSCI, said the inclusion could lead to open-ended funds being launched as a result. There are currently only two ETFs dedicated to Saudi Arabia; one from iShares and one from Invesc...
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