Insights | FTSE Saudi Arabia Inclusion Index Series: Your keys to the kingdom

Introduction
On October 29, 2017 FTSE Russell launched the FTSE Saudi Arabia Inclusion Index Series, a comprehensive series of global, regional and country-level indexes which can be used as a transitional tool in preparation for the potential inclusion of Saudi Arabia in the widely-followed FTSE Global Equity Index Series (FTSE GEIS). The indexes were designed to support domestic and international investors in response to regional growth and the opening of the Saudi Arabia capital market to Qualified Foreign Investors (QFI), which was announced in 2015.

The QFI program, along with a series of additional market reforms, supports “Vision 2030”, the Kingdom of Saudi Arabia’s plan for economic transformation. The plan aims to boost and diversify the Kingdom’s economy by increasing foreign investment and developing the private sector to increase non-oil revenue. A vital portion of the plan attracting global attention includes the potential sale of up to 5% of the government-owned oil company, Aramco, the largest oil company in the world and likely the largest initial public offering (IPO) in history.

Saudi Arabia was added to the FTSE Watch List for possible inclusion as a Secondary Emerging market within FTSE GEIS in September 2015. As per FTSE’s Annual Country Classification announcement on September 29, 2017, it is retained on the Watch List for possible inclusion, and its status will be reviewed as part the interim country classification review in March 2018.

To support growing demand, FTSE Russell offers market participants the FTSE Saudi Arabia Inclusion Index Series, a global index series that combines the constituents of stand-alone FTSE Saudi Arabia Indexes with various regional and global FTSE indexes.

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Supporting documents

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