Delayed MSCI Kuwait Inclusion Provides Opportunity for Investors | KUW8
had delayed the inclusion of Kuwait to the Emerging Market Index Series until
oil prices and undervalued Kuwaiti equities providing a unique buying
UCITS ETF provides focused exposure to Kuwaiti securities across industry
provider, MSCI has confirmed in its most recent country classification review
that Kuwait will be upgraded to ‘emerging market’ status and added to the
leading MSCI Emerging market index suite in November, 2020, following the
introduction of omnibus account structures in the gulf state.
is expected to have an initial index weight of ~0.69% which, in turn, is expected
to drive up to $10 Billion of active and passive flows into companies listed on
Borsa Kuwait .
the upgrade of a country, and its inclusion in a major benchmark has had a
positive price impact on the underlying securities.
at Saudi Arabia as a case study, the market showed discernible positive price
impacts on both the announcement of the inclusion as well as on implementation.
Using the comparison, Kuwait might experience a large performance boost in the second
half of 2020 due to buy side pressure in view of the MSCI implementation.
Kuwaiti policy makers, like many of their regional peers, are responding to an
age of declining energy prices and decarbonization by implementing a wide-ranging
economic development and infrastructure plan – ‘Vision 2030’. The plan is
designed to transform the Kuwaiti economy through more than 150 strategic
programmes ranging from public administration reform, education, technology,
sustainable energy, urban development, healthcare and tourism.
combination of low energy prices, the economic development projects and the
potential impact of the index upgrade are creating a once-in-a lifetime buying
opportunity for investors who want to access the long-term growth potential of
the Kuwaiti economy.
Investing in Kuwait
you trade ETFs your capital is at risk.
KMEFIC FTSE Kuwait Equity UCITS ETF (KUW8) was the first UCITS ETF to
provide targeted exposure to Kuwaiti securities. It is also the only UCITS ETF
to be sponsored by a Kuwait asset manager, (Kuwait & Middle East Financial
at 80bps, KUW8 includes 17 of the largest and most liquid securities trading on
Borsa Kuwait and uniquely is focused away from the declining energy sector and
towards sectors that stand to benefit most from ‘Vision 2030’ spending.
such, KUW8 offers investors an efficient, liquid and diversified tool for
investors who want to benefit from the potential impact of the upgrade.
For more information on
the ETF, visit the KMEFIC
FTSE Kuwait Equity ETF (KUW8) fund page.