MSCI Kuwait index will be included in the 2019 annual market classification review

Wednesday, 4 July 2018

Boursa Kuwait would like to confirm that Morgan Stanley Capital
International (MSCI) announced that it will include the MSCI Kuwait Index in its 2019 Annual
Market Classification Review for a potential reclassification from Frontier Markets to Emerging
Markets status.
MSCI will consult with market participants on the proposed reclassification of the MSCI Kuwait
Index, MSCI will announce its decision in June 2019 for potential implementation with the May
2020 Semi-Annual Index Review. The simulated MSCI Kuwait index would have a potential weight
of 0.3% in the MSCI Emerging markets index.
MSCI is one of the world’s top providers of research-driven insights and tools for institutional
investors. The reclassification from frontier to emerging markets is a major achievement for any
country which typically brings with it large capital inflows from international investors.
The process of the annual market classification review will be completed within one year. This
process will be based on three criteria in analyzing and seeking feedback: the country’s economic
development; size and liquidity requirements for listed companies; as well as market accessibility.
On this occasion, Boursa Kuwait CEO Mr. Khaled AbdulRazzaq AL Khaled said: “This
announcement is a fitting testament to the progress of Boursa Kuwait’s market development plan,
while also highlighting the most recent upgrades implemented by the exchange”.
In 2017, the Financial Times Stock Exchange (FTSE) Russell Governance Board added Kuwait to
its Secondary Emerging Market Index. The updated entry will take place in two equal stages in
September and December this year.
Since its establishment in 2014, Boursa Kuwait has been committed to raising the standards of
the Kuwaiti capital market, facilitating the development of a sound, internationally recognized,
leading regional stock exchange.