The index will come with at least 70 Saudi corporations indexed and will be in MSCI standards, Khalid Al-Hussan said at a virtual event.
“Overall, we perceive that GSS meets an investment requirement and we don’t need to be in the Saudi market,” he added.
Demand for sustainable, climate-friendly investments has increased in recent years and has noticed that the COVID-19 pandemic has increased otherwise, with many investors around the world focusing on companies with more sustainable, low-carbon models.
With a market capitalization of $2.5 trillion, thanks to the Saudi Aramco IPO in 2019, Tadawul is the ninth largest inventory market in the world, classified after the London Stock Exchange and ahead of the Toronto Stock Exchange of Canada, according to the knowledge of the World Federation of Stock Exchanges.
The Saudi government has introduced a series of reforms to attract foreign share buyers and issuers as a component of efforts to attract foreign capital and diversify the oil-dependent economy.
In 2019, the Saudi market joined the FTSE Emerging All Cap index and the MSCI Emerging Markets index, prompting more foreign funds inflows.
Inventory exchange also plans to factor ESG for Saudi indexed corporations in the fourth quarter.
(Report through Marwa Rashad and Hadeel Al Sayegh; edited through Jane Merriman)
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