MSCI Kuwait index to be included in the 2019 review
Announcement is testament to progress of Boursa Kuwait development plan: CEO
KUWAIT CITY, June 21: Boursa Kuwait would like to confirm that Morgan Stanley Capital International (MSCI) announced that it will include the MSCI Kuwait Index in its 2019 Annual Market Classification Review for a potential reclassification from Frontier Markets to Emerging Markets status.
MSCI will consult with market participants on the proposed reclassification of the MSCI Kuwait Index, MSCI will announce its decision in June 2019 for potential implementation with the May 2020 SemiAnnual Index Review. The simulated MSCI Kuwait index would have a potential weight of 0.3% in the MSCI Emerging markets index.
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.
The process of the annual market classification review will be completed within one year. This process will be based on three criteria in analyzing and seeking feedback: the country’s economic development; size and liquidity requirements for listed companies; as well as market accessibility.
On this occasion, 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.