SaudiArabiaPR.com, Online Press Release from Saudi Arabia,Riyadh, Jeddah, Dammam, Meccca and Medina
 
Economy & Statistics(Banking & Investments)
Filter PR by
  
Saudi Arabia's MSCI inclusion expected to trigger capital inflows of around USD 45 billion
  • Index provider MSCI announced it is including Saudi Arabia in its Emerging Markets (MSCI EM) index
  • UBS Global Wealth Management's Chief Investment Office expects higher energy prices and the recovery in corporate earnings to support local stocks in the medium term
  • Continued reform is crucial to Saudi stock performance with weaker oil prices and geopolitical tensions identified as key risks
Dubai, UAE, 1st  July,  2018:  MSCI's decision to include Saudi Arabia as the 25th country to be represented in the MSCI Emerging Markets (EM) index is expected to attract significant capital inflows for the Middle Eastern country, UBS Global Wealth Management's Chief Investment Office reports. The inclusion should translate into approximately USD 45bn, with USD 10bn from passive and USD 35bn from active investments. Rival index provider FTSE's recent inclusion of Saudi Arabia in its own EM benchmark index earlier this year is estimated to add another USD 5bn of inflows, thus increasing the chances of further near term outperformance for the country. Potential IPOs and an increased quota for foreign investor holdings might trigger additional inflows in coming months. The market should be supported by fundamentals, including higher energy prices, and the ongoing recovery in corporate earnings.
 
However, UBS Global Wealth Management's Chief Investment Office also points out some long term risks for investors. Despite ongoing efforts to diversify the Saudi economy away from oil, energy still accounts for three-quarters of the country's exports and contributes two-thirds of its fiscal revenues. While climbing prices should support local stocks and Saudi authorities in easing fiscal austerity measures, renewed oil price weakness could affect the country's fiscal and external balances. Ongoing diversification efforts are therefore crucial for longer term success. Geopolitical tensions remain dominant in the wider region.
 
Michael Bolliger, Head EM Asset Allocation, UBS Global Wealth Management, Chief Investment Office, says: 'While we expect a short term increase in Saudi Arabia's performance following the MSCI inclusion, we also advise investors to keep an eye on fundamentals. Diversification is elementary for the country's long term economic success and the current momentum should be used to channel foreign direct investment into a range of strategically relevant sectors, which is a key objective of the Saudi Vision 2030.'

Posted by : Saudi Arabia,Riyadh, Jeddah, Dammam, Meccca and Medina PR Network Editorial Team
Viewed 1636 times
PR Category : Banking & Investments
Posted on : Sunday, July 1, 2018  12:17:00 PM UAE local time (GMT+4)
Email this article Print this article

Share this article with your friends and followers
NewsVine
Back to Section Home

Related Stories

 
 
Most Viewed Press Release posted in the last 7 days
Italian Wonder D1 Milano Announces New Releases at Baselworld 2019 [13780-Views]
THE RECIPE for healthy skin [13624-Views]
Invictus & Olympéa Chapter 2: Enter the Legend [13186-Views]
NEW OLAY WHIPS: Powerful Skincare, NOW Light as Air [13005-Views]
Cerruti 1881 [12325-Views]
Juliette has a gun's New Vanilla Vibes Perfume, a hymn to Adventure and Freedom, now in the UAE [11853-Views]
Esposa Prive - Viktor&Rolf Mariage - Spring/Summer 2019 [11787-Views]
OPPO confirms 10x Hybrid Zoom tech to launch in Middle East [11513-Views]
Dabur Amla Kids – Natural nourishment for your child's hair [11500-Views]
The World of Aigner [11345-Views]
Michael Kors Watches | Summer 2019 [10705-Views]
Spring Collection 2019 - Versus Mouffetard [10484-Views]
Longchamp X Nendo A “!” Moment Around Le Pliage® [10299-Views]
Translucent Is a Distinguished Milestone for Police [10266-Views]
Saint Honore Paris [10033-Views]
Chaumet Launches The Bolero Watch [9828-Views]
The RL50 Handbag: Introducing a New Icon [9262-Views]
Cerruti 1881 launches a splendid new collection for the festive season [8643-Views]
Chloé Launches The New Spring/summer 2019 Advertising Campaign Featuring Two Iconic “rosie” Style Su... [8479-Views]
Celebrate with the new AIGNER Ramadan collection [8364-Views]
 
RSS Facebook Twitter LinkedDin
 
Top Sections
 
Top Stories