Riyadh – Mubasher: The Saudi Stock Exchange (Tadawul) is forecast to represent approximately 2.6% of the MSCI emerging markets (EM) index after the global index compiler has upgraded the region’s biggest bourse to EM status, Renaissance Capital has said.

The Russia-based firm expected the Saudi bourse’s classification by the leading provider of global equity indexes to attract $3 billion in inflows from passive funds, in addition to $10.7 billion from active funds.

The US-based MSCI late on Wednesday announced upgrading Tadawul to an EM status, from a standalone market in its annual review.

On a separate note, Bloomberg News on Wednesday reported that Saudi and Argentina stock exchanges are projected to raise their assets by more than a combined $600 billion on the back of the widely-anticipated decision by the MSCI to promote both to EM status.