Saudi Arabia's stock exchange is in talks with several index providers, including influential index compiler MSCI, to become one of its component, the president of the Saudi Capital Market Authority (CMA) said. "The kingdom is eligible to join emerging markets indicators like some of other markets in the region," Abdul Rahman Al-Tuwaijri was quoted saying by Saudi's state news agency SPA on Sunday.
No specific time-frame or details on the talks were offered in the statement. Two other Gulf Arab states, the United Arab Emirates and Qatar, are aiming to acquire an emerging market status from the MSCI in a review likely to be released next month.
MSCI, a widely tracked and influential index provider, said in July last year that it would drop all indices with Saudi stocks after failed negotiations with Tadawul, the kingdom's bourse, over the licensing of information.
Saudi Arabia is the largest stock market in the Gulf Arab region and fund managers have been scrambling to get an exposure in the market, considered more diverse than most other Gulf markets.
Foreign institutions are not allowed to buy directly in Saudi Arabia and access the market through instruments known as participatory notes.
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