KUWAIT THE EMERGING ECONOMIC LANDMARK

Globally recognized and upgraded by the world’s leading indices

In a landmark development that comes as a global recognition for Boursa Kuwait, the Capital Market Authority (CMA) and the Kuwait Clearing Company’s (KCC) sweeping market development efforts, MSCI Inc., a leading provider of critical decision support tools and services for the global investment community, announced the reclassification of Kuwait to ‘Emerging Market’.

The MSCI status upgrade follows Kuwait’s inclusion in S&P Dow Jones Indices’ (S&P DJI), Global Equity Indices, with Emerging Markets classification in December 2018 and in the FTSE Russell Emerging Markets Index in September 2017. 

On December 20, 2018, Boursa Kuwait completed the second  tranche of its inclusion in FTSE Russell Index for Emerging Markets. The first tranche was initiated in September of the same year.

On December 5, 2018, S&P Dow Jones Indices (“S&P DJI”) announced that it will add eligible Kuwaiti companies to S&P DJI’s Global Benchmark Indices with an Emerging Market classification effective at the market open on September 23, 2019.

On June 25th 2019, MSCI, upgraded Kuwait to ‘Emerging Market’ from its previous ‘Frontier Market’ status in its 2019 Annual Market Classification Review. The reclassification, is expected to lead to significant foreign capital flows to country’s equities.

“The MSCI Emerging Markets upgrade will be a game changer for the domestic capital markets as it will lead to substantial inflows of foreign investment, improved liquidity, and a significant enhancement in the investing environment in the country.”

Hamad Mishari Al-Humaidhi

Chairman, Boursa Kuwait

The benefits of joining Emerging Markets Indices

Improving market access and Diversifiying  investor base

Increase attractiveness of the Capital market

Inflows of foreign investment and Improve liquidity

Encourage Participation of experienced  investors in companies general assemblies

“MSCI’s reclassification of Kuwait to Emerging Markets represents a recognition of Boursa Kuwait’s instrumental role in improving market access and efficiency, enhancing transparency and governance, increasing liquidity and strengthening investor confidence over the last two years.” 

Mohammed Al Osaimi

Acting CEO, Boursa Kuwait

Tranches and Weights

FTSE Russell

Number of Tranches

2

Tranche 1 September 2018

Tranche 2 December 2018

Index Weight

As of May 31st 2019

0.94%

S&P Dow Jones

Expected

Number of Tranches

1

 September 23rd. 2019

Projected Weight

0.416%

MSCI

Expected

Number of Tranches

1

May 2020

Projected Weight

0.5%

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