Deutsche Bank Sees Saudi Arabia Inflows Reaching over $35 Billion on MSCI

Saudi Arabia is expected to attract tens of billions of dollars in foreign investments if it’s added to MSCI Inc.’s emerging-markets index, Deutsche Bank AG’s chief executive officer for the Middle East and Africa claims.

Our “research anticipates a figure of up to $35 billion of inflows,” Dubai-based Jamal Al Kishi said in an interview.

“Given the recent developments in Saudi Arabia and the turmoil in some other emerging markets, Saudi Arabia could potentially attract more significant inflows in my view, but this will not be instantaneous.”

In 2015, the largest global oil exporter allowed qualified investors from outside Gulf Arab states to trade the kingdom’s stocks directly. This year it moved to a T+2 settlement cycle as part of a drive to diversify its $640 billion economy away from oil. The Tadawul All Share Index declined 5.4 percent this year.

Read more at Bloomberg.