MSCI latest index reshuffle brought notable changes to MENA equities, with the UAE, Saudi Arabia, and Morocco seeing new inclusions in major indices, according to the MSCI Equity Indexes February 2025 Index Review (pdf). The new additions will take effect at market close on Friday, 28 February. Overall, MENA equities maintained their positions with no removals from MSCI’s index categories this month.

Favorable sectors: Additions from our part of the world seem to be heavily weighted towards real estate, petrochemicals, telecom and finance aligning with the region’s broader economic diversification plans.

Emaar Development joins the big league: DFM-listed Emaar Development was added to the MSCI Emerging Markets Index, as one of the index’s three largest additions by market cap this month, reinforcing the UAE’s growing market depth and liquidity. Additionally, two Emirati companies joined the MSCI ACWI Small Cap Index (pdf), namely ADX-listed NMDC Energy and Abu Dhabi National Hotels.

Why it matters: Inclusion in MSCI indices can significantly ramp up the companies’ market presence, liquidity, and investor attractiveness. It’s a sign of credibility, financial health, and alignment with global investment standards. It also follows a rigorous selection process based on market classification, size, liquidity and foreign accessibility. To be added, a company must first be listed in an MSCI-designated Emerging Market country, meet minimum market cap thresholds, and boast strong liquidity (with an annualized traded value ratio of at least 15%); without having major restrictions on foreign ownership.

An easier entry lane? The MSCI Small Cap Index includes companies that fall below MSCI’s large and mid-cap size classifications but still meet size, liquidity, and accessibility requirements, offering exposure to smaller yet investable stocks. Meanwhile, the MSCI Frontier Markets Index is designed for companies in smaller, developing economies like Morocco, where inclusion criteria are less stringent than emerging markets

Tags: