Global index compiler MSCI will consider reclassifying Kuwait from Frontier Market to Emerging Market status at its annual market review in 2019.
As part of the results for the 2018 Annual Market Classification Review, MSCI noted that it will include the MSCI Kuwait Index as part of its review next year.
The MSCI Kuwait Index is designed to measure the performance of large and mid-cap segments of the Kuwait market.
The index has eight constituents, which cover 85 percent of the Kuwait equity universe, according to MSCI.
The index’s constituents include the National Bank of Kuwait, the Kuwait Finance House, Mobile Telecom Co., Agility, Boubyan Banking, Mabanee Co SAKC, Burgan Bank and Kuwait Project Co Holdings.
In September 2017, rival index compiler FTSE Russell reclassified Kuwait as an emerging market, which experts said could prompt inflows of $700 million from investors.
At the time, Khaled Abdul Razzaq Al Khaled, the CEO of Boursa Kuwait, said that he believed the addition by MSCI could happen “in the next one or two years” following the FTSE upgrade.
This week, MSCI announced that it will reclassify Saudi Arabia with implementation of its indexes starting in June 2019.
The nation was added to a watch list for a potential upgrade last year, and will now join nations including China, India, Turkey, South Africa and Brazil. Separately, MSCI said it would upgrade Argentina to the category as well.For all the latest business news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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