(Corrects to say MSCI may review Saudi Arabia as emerging
market in June 2015, rather than make a decision then)
LONDON, July 22 Index compiler MSCI will consult
with investors about adding Saudi Arabia to its broader stock
indices and could place it on review for classification as an
emerging market in June 2015, an MSCI official said on Tuesday.
Saudi Arabia plans to open its stock market, the Arab
world's biggest, to direct investment by foreign financial
institutions in the first half of next year, the market
regulator said on Tuesday.
Sebastien Lieblich, executive director in the index research
team at MSCI, said MSCI would wait for the changes to be
implemented before consulting investors. He added that a final
decision as to whether to include it as an emerging market was
unlikely to be made before June 2016.
"We need to be convinced that everything is at emerging
market standards," he said.
If Saudi Arabia only partially opens up to foreign
investors, in the same way as the Chinese domestic "A" share
market, it would likely be a standalone index, Lieblich added.
(Reporting by Carolyn Cohn; Editing by Sujata Rao)