Saudi Arabia could form majority of region’s MSCI EM – Goldman Sachs at Saudi Capital Market Forum

Saudi Arabia could form majority of region’s MSCI EM – Goldman Sachs at Saudi Capital Market Forum

Riyadh – Mubasher: The MENA region could become 10% of MSCI Emerging Markets (EM) Index, with Saudi Arabia accounting for approximately 70% of this percentage, according to Goldman Sachs’ Richard Cormack, who is the Co-Head of Equity Capital Markets EMEA and Co-Head of UK Investment Banking.

Cormack gave his remarks during the Saudi Capital Market Forum 2024 event which was concluded in Riyadh this week. The findings are according to a new research by Goldman Sachs as cited in a press release.

He further elaborated on the prediction, noting that it would put the MENA region in parallel with Latin America as block, which is considered the biggest block outside of Asia.

Cormack stated that in terms of passive and active flows, this would mean roughly $50 billion over time.

He stated that Saudi Arabia “is up there with developed markets,” noting that the Kingdom trades at an attractive multiple with a market price-to-earnings ratio (PE) of around 21 times – the same as the market PE in the US.

During the event, Khalid Al Falih, the Saudi Minister of Investment, unveiled that the gross domestic product (GDP) of the country crossed SAR 4 trillion and the National Investment Strategy has a target to grow