MSCI to include 19 stocks in emerging markets index

15 May 2014

Nine UAE stocks and 10 Qatar stocks will be included

Index compiler MSCI has announced the inclusion of nine UAE stocks and 10 Qatar stocks on its emerging markets index. The changes will be implemented at the close of 30 May.

MSCI, whose indices are tracked by fund managers across the globe, announced in June that both Qatar and the UAE will be upgraded from frontier to emerging markets status. As it has specific criteria for stocks’ addition to the Emerging Markets Index, it remained unclear which stocks would be included until its announcement on 14 May.

MSCI said the UAE and Qatar are expected to have a combined weight on the index of 1.05 per cent. The figure is based on data compiled on 17 April.

The UAE’s three largest additions will be Emaar Properties, Aldar Properties and DP World, while Qatar’s top three are Al-Rayan Bank, telecommunications company Ooredoo and Qatar National Bank.

Others that made the cut are Abu Dhabi Commercial Bank, Arabtec, Dubai Financial Market, First Gulf Bank, National Bank of Abu Dhabi, Barwa Real Estate, Commercial Bank of Qatar, Doha Bank, Qatar Electricity & Water Company, Industries Qatar, Qatar Islamic Bank and Vodafone Qatar.

The UAE and Qatar’s stock markets have risen exponentially during the run-up to the announcement. The Dubai Financial Market has jumped 58 per cent year-to-date, while Abu Dhabi has risen more than 17 per cent in the past three months. Qatar is up 27 per cent. This is a continuation of their extraordinary rises of between 40 to 110 per cent in 2013, resulting from regained investor confidence in regional economies.

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