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Saudi: will an MSCI upgrade drive the Tadawul higher?

MSCI’s upcoming decision on whether to include Saudi Arabia in its benchmark emerging market equity indices has been billed as a game changer for the Kingdom’s stock market, but past experience suggests that a lot of the optimism is probably overdone. Other factors, notably oil prices and regional political tensions, will have a bigger effect on the performance of the stock market over the coming years.

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