S&P Dow Jones Indices has started consultations to upgrade Saudi Arabia to emerging market status, joining other index compilers seeking to revise their classification of the biggest Arab economy.
The company’s consultations, which will end June 15, is being undertaken as Saudi Arabia has revamped its stock market laws and regulations to be more in line with international norms and ease access to foreign investors, S&P Dow Jones said in a statement on Thursday.
“S&P DJI is considering changing the country classification of Saudi Arabia to reflect the progress made with regard to financial market reforms including greater foreign accessibility and alignment with global standards,” it said.
Saudi Arabia’s stock market, the Arab region’s biggest with a market capitalisation of about $500 billion (Dh1.84 trillion), is initiating reforms as part of plans to lure more foreign investors, who currently own around 5 per cent of the market.
The kingdom has implemented a slew of reforms to help win its emerging market status. FTSE Russell upgraded the country in March. Rival MSCI, which is tracked by around $1.6tn in active and passively managed money, is expected to make a similar move next month that could pump as much as $80bn in inflows, according to estimates by Franklin Templeton Investments.
In January, Saudi Arabia made it easier for international investors to buy publicly-traded companies by halving the minimum requirement of qualified foreign investors to $500 million from $1bn. The kingdom also introduced short-selling last year and implemented the T+2 settlement, which means that securities settle two days after they are bought, in line with international norms.
The reforms being undertaken are under the umbrella of Vision 2030, an overarching economic roadmap that was revealed in 2016 and is being implemented in phases.
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Read more:
FTSE upgrades Saudi Arabia to emerging market status
Emirates NBD looks to upsize Saudi equities fund to $100m this year
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Saudi Arabia, the world’s biggest oil exporter, is courting foreign investors as part of reforms aimed at lowering dependence on hydrocarbon income and creating new revenue streams in the wake of the 2014 oil price slump that saw oil drop to below $30 a barrel.
The upcoming sale of a 5 per cent stake in Saudi Aramco, the world’s biggest oil producer, is another catalyst to add the country to S&P DJI. The government may reap as much as $100bn from the listing.
“The anticipated initial public offering of Saudi Aramco has drawn significant foreign investor interest,” said the company. “All of these developments reinforce the need to appropriately reflect the status of Saudi Arabia in global investment portfolios.”
Saudi Arabia could have a potential weighting of 2.57 per cent in S&P Emerging BMI if there is full inclusion and 0.28 per cent weighting in S&P Global BMI if there is full inclusion, the company said.
Tips on buying property during a pandemic
Islay Robinson, group chief executive of mortgage broker Enness Global, offers his advice on buying property in today's market.
While many have been quick to call a market collapse, this simply isn’t what we’re seeing on the ground. Many pockets of the global property market, including London and the UAE, continue to be compelling locations to invest in real estate.
While an air of uncertainty remains, the outlook is far better than anyone could have predicted. However, it is still important to consider the wider threat posed by Covid-19 when buying bricks and mortar.
Anything with outside space, gardens and private entrances is a must and these property features will see your investment keep its value should the pandemic drag on. In contrast, flats and particularly high-rise developments are falling in popularity and investors should avoid them at all costs.
Attractive investment property can be hard to find amid strong demand and heightened buyer activity. When you do find one, be prepared to move hard and fast to secure it. If you have your finances in order, this shouldn’t be an issue.
Lenders continue to lend and rates remain at an all-time low, so utilise this. There is no point in tying up cash when you can keep this liquidity to maximise other opportunities.
Keep your head and, as always when investing, take the long-term view. External factors such as coronavirus or Brexit will present challenges in the short-term, but the long-term outlook remains strong.
Finally, keep an eye on your currency. Whenever currency fluctuations favour foreign buyers, you can bet that demand will increase, as they act to secure what is essentially a discounted property.
Sheikh Zayed's poem
When it is unveiled at Abu Dhabi Art, the Standing Tall exhibition will appear as an interplay of poetry and art. The 100 scarves are 100 fragments surrounding five, figurative, female sculptures, and both sculptures and scarves are hand-embroidered by a group of refugee women artisans, who used the Palestinian cross-stitch embroidery art of tatreez. Fragments of Sheikh Zayed’s poem Your Love is Ruling My Heart, written in Arabic as a love poem to his nation, are embroidered onto both the sculptures and the scarves. Here is the English translation.
Your love is ruling over my heart
Your love is ruling over my heart, even a mountain can’t bear all of it
Woe for my heart of such a love, if it befell it and made it its home
You came on me like a gleaming sun, you are the cure for my soul of its sickness
Be lenient on me, oh tender one, and have mercy on who because of you is in ruins
You are like the Ajeed Al-reem [leader of the gazelle herd] for my country, the source of all of its knowledge
You waddle even when you stand still, with feet white like the blooming of the dates of the palm
Oh, who wishes to deprive me of sleep, the night has ended and I still have not seen you
You are the cure for my sickness and my support, you dried my throat up let me go and damp it
Help me, oh children of mine, for in his love my life will pass me by.
Background: Chemical Weapons
Wicked: For Good
Director: Jon M Chu
Starring: Ariana Grande, Cynthia Erivo, Jonathan Bailey, Jeff Goldblum, Michelle Yeoh, Ethan Slater
Rating: 4/5
How to improve Arabic reading in early years
One 45-minute class per week in Standard Arabic is not sufficient
The goal should be for grade 1 and 2 students to become fluent readers
Subjects like technology, social studies, science can be taught in later grades
Grade 1 curricula should include oral instruction in Standard Arabic
First graders must regularly practice individual letters and combinations
Time should be slotted in class to read longer passages in early grades
Improve the appearance of textbooks
Revision of curriculum should be undertaken as per research findings
Conjugations of most common verb forms should be taught
Systematic learning of Standard Arabic grammar
LILO & STITCH
Starring: Sydney Elizebeth Agudong, Maia Kealoha, Chris Sanders
Director: Dean Fleischer Camp
Rating: 4.5/5
The Porpoise
By Mark Haddon
(Penguin Random House)
McIlroy's recent struggles
Last six stroke-play events (First round score in brackets)
Arnold Palmer Invitational Tied for 4th (74)
The US Masters Tied for 7th (72)
The Players Championship Tied for 35th (73)
US Open Missed the cut (78)
Travellers Championship Tied for 17th (67)
Irish Open Missed the cut (72)
RESULT
Esperance de Tunis 1 Guadalajara 1
(Esperance won 6-5 on penalties)
Esperance: Belaili 38’
Guadalajara: Sandoval 5’
This is an info box
- info goes here
- and here
- and here
Heather, the Totality
Matthew Weiner,
Canongate
Take Me Apart
Kelela
(Warp)
Tips to keep your car cool
- Place a sun reflector in your windshield when not driving
- Park in shaded or covered areas
- Add tint to windows
- Wrap your car to change the exterior colour
- Pick light interiors - choose colours such as beige and cream for seats and dashboard furniture
- Avoid leather interiors as these absorb more heat
