Saudi Stocks Set to Join MSCI Emerging-Market Benchmarks

The video discusses the significance of market inclusion, focusing on the Saudi market's MSCI inclusion. It examines the behavior of passive and active funds, market expectations, and reactions. The video compares Saudi's inclusion with UAE and Qatar, highlighting differences in market dynamics. Future predictions suggest that while the market may underperform initially, it could become attractive for active funds as valuations adjust.

What is the expected inflow of passive money into the Saudi market?

• $4 billion

• $2 billion

• $6 billion

• $8 billion

How does the Saudi market's inclusion differ from that of Abu Dhabi and Qatar?

• It has more political tensions

• It has a smaller initial inflow

• It has a larger wave of inclusion in August

• It has less enthusiasm from investors

What is a key challenge in equity markets, especially in government sectors?

• Low demand

• Excessive supply

• High transparency

• Lack of transparency

What is the anticipated effect of the August inclusion on the Saudi market?

• Reduction in passive fund inflows

• Decrease in market attractiveness

• Increase in active fund participation

• Stability in market prices

Why might active funds enter the market after the inclusion?

• As valuations become attractive

• Due to political stability

• Because the market is overvalued

• Because passive funds are exiting