Dubai Electricity and Water Authority (DEWA), ADNOC Gas and Salik will be able to benefit from increased liquidity, deeper market penetration, and enhanced stock visibility after shares of the three leading UAE companies were selected for inclusion in the MSCI Emerging Markets Index.
DEWA is Dubai’s utilities provider, while Salik is the toll gate operator in the emirate. ADNOC Gas is Abu Dhabi’s integrated gas processing and sales company.
New MSCI entrants
According to a MSCI statement, ADNOC Gas and DEWA were among the three largest additions to the MSCI Emerging Markets Index measured by full company market capitalisation. The third-largest company added to the list in May was China’s Sichuan Biokin Pharmaceutical A.
Other GCC inclusions were Oman’s Ominvest, and Saudi Arabia’s Jabal Omar Development and Makkah Constructions.
The inclusion will take effect on June 2.
With over 1,400 constituents and approximately US$7 trillion in assets benchmarked to it, the index is widely tracked by passive funds that replicate the performance of market index, and institutional investors worldwide.
Being added to the MSCI Index can trigger automatic capital inflows from passive investment vehicles and index-linked funds that replicate the index composition. These flows are typically non-discretionary, creating steady buy-side demand for the stock from the date of inclusion.
Commenting on the inclusion, Saeed Mohammed Al Tayer, Vice Chairman and MD & CEO of DEWA, said: “Our inclusion in the MSCI Emerging Markets Index marks a pivotal milestone in DEWA’s journey as a publicly-listed company and reinforces our growing relevance on the global investment stage.
“DEWA was among the largest additions to the MSCI Emerging Markets Index measured by full company market capitalisation. This addition positions DEWA among a select group of emerging market companies sought after by international investors for their stability, scale, and sustainable growth outlook. With a strong track record of delivering predictable dividends, advancing clean energy targets, and supporting Dubai’s net-zero ambitions, DEWA offers a compelling proposition for long-term global capital. Our fundamentals, governance, and operating standards reflect global best practices.”
ADNOC Gas became the third ADNOC company to be admitted to the Index. The announcement follows a successful US$2.84 billion marketed offering which raised the free float by 80 per cent and increased average daily trading volume sixfold. It is a significant step in ADNOC Gas’ growth strategy and future value creation as it targets 40 per cent EBITDA increase by 2029.
Fatema Mohamed Al Nuaimi, Chief Executive Officer at ADNOC Gas, said: “We are delighted that ADNOC Gas has been included in the MSCI Emerging Market Index. The inclusion supports our ambition to attract a broader and more diversified base of institutional investors and should drive greater liquidity in ADNOC Gas stock.
“We are confident that our continued strategic focus on growth will deliver further value for shareholders through 2025 and beyond.”
In a statement, Salik said meeting the necessary market capitalisation, free float-adjusted market capitalisation and liquidity requirements for inclusion in the Index demonstrated the company’s robust financial performance and unique value proposition.
Ibrahim Sultan Al Haddad, Chief Executive Officer of Salik, added: “MSCI’s UAE Index offers global investors ease of access and a compelling opportunity to capitalise on the UAE’s thriving equity market. We are very encouraged by Salik’s inclusion in the Index and would like to thank our investors for their trust in Salik’s equity story.
“This milestone is a testament to our performance and strategic achievements since listing on DFM, in particular the strength of our business model, our unique value proposition and robust financial track record. Salik remains focused on its ambition to become a global leader in providing smart and sustainable mobility solutions.”
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