MSCI Includes Emaar Development in EM Index

Bolstering their chances to attract more global investors, three companies listed on the UAE bourses Saudi Exchange Tadawul have been added to the MSCI Emerging Markets Index and MSCI ACWI (All Country World Index) Small Cap Index, according to the MSCI Equity Indexes February 2025 Index Review.

While Emaar Development, which is listed on Dubai Financial Market (DFM), has been added to the MSCI Emerging Markets (EM), NMDC Energy and Abu Dhabi National Hotels, both listed on Abu Dhabi Securities Exchange (ADX), are now part of the MSCI ACWI Small Cap Index.

On the other hands, three firms listed on Saudi Exchange Tadawul – Advanced Petrochemicals, Al Majed Oud, and Mobile Telecom – have been deleted from the list. The new additions will take effect at market close on 28 Friday February, MSCI said.

Inclusion in the MSCI indices is expected to give a push to the companies expand their operations globally with adequate liquidity, and attract global investors. This also is an indication of their credibility, strong financial health, and alignment with global investment standards.

Inclusion in MSCI indices follows a rigorous selection process based on market classification, size, liquidity, and foreign accessibility. To be added, a company must first be listed in an MSCI-designated Emerging Market country, meet minimum market cap thresholds, and boast strong liquidity, with an annualised traded value ratio of at least 15%, without having major restrictions on foreign ownership.

In the wider GCC region, Morocco’s CFG Bank was added to the MSCI Frontier Markets Index, reflecting the North African market’s growing financial sector influence. Besides CFG Bank, Koncar Eletroindustrija (Croatia), and Standard Chartered Bank (Kenya).

As many as 23 securities will be added to and 107 securities will be deleted from the MSCI ACWI Index.

Largest Additions

The three largest additions to the MSCI World Index measured by full company market capitalisation were three US-based companies – United Airlines Holdings (US), Reddit A (US) and Natera – and three largest additions to the MSCI EM Index measured by full company market capitalisation were Hyundai Motor India (India) and J&T Global Express B (China).

The MSCI Frontier Markets Index is designed for companies in smaller, developing economies like Morocco, where inclusion criteria are less stringent than in emerging markets.

The MSCI Small Cap Index includes companies that fall below MSCI’s large and mid-cap size classifications but still meet size, liquidity, and accessibility requirements, offering exposure to smaller yet investable stocks.