The Saudi Stock Exchange (Tadawul) announced in Riyadh on Tuesday that it has co-signed an agreement with MSCI, the global provider of indices, to develop a new trading index related to developing a variety of investment instruments such as ETFs and other derivatives.
MSCI reclassified the Saudi stock market promoting it to an emerging market, during the annual review, in June and will be available, in the fourth quarter of 2018, reported the Saudi Press Agency.
"The establishment of this index provides a platform for the development of futures traded and other traded products, in the financial market," Khaled Al Hossan, the Chief Executive of Tadawul said.
"The Saudi market's entry into the global emerging market indices, including the MSCI Index, helps in paving the way for ETFs and other products that allow investors to expand their dealings, with greater diversification and risk management, in parallel with enhancing overall market efficiency," he added.
For his part, Henry Fernandez, Chairman and Chief Executive Officer of MSCI, said that Saudi Arabia has witnessed significant developments over the past few years.
He added that the jointly launched index is a result of the Saudi market applying international standards and desire to provide additional investment opportunities to investors.
