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Frequently Asked Questions

What is the MSCI Tadawul 30 Index (MT30)?

The MSCI TADAWUL 30 Index (MT30) is a joint tradeable index co-developed with MSCI Inc. to serve as a basis for derivatives and exchange-traded financial products. The MSCI TADAWUL 30 Index (MT30) is designed to reflect the performance of approximately the 30 largest and most liquid stocks listed on the Saudi Stock Exchange (Tadawul).

Who is MSCI?

MSCI Inc. is a Global provider of equity, fixed income, hedge fund stock market indexes, and multi-asset portfolio analysis tools. For more than 40 years, MSCI’s research based indexes and analytics have helped the world’s leading investors build and manage better portfolios. More than 14 Trillion USD in equity assets are estimated to be benchmarked to MSCI Indices, and more than 90 of the top 100 global investment managers are clients of MSCI.

What does “tradeable” index mean?

Tradeable does not necessarily means that the index will be traded, it means that the index constituents are highly liquid, with a significant size available to be traded on the exchange.

Who are the main potential users for the MSCI TADAWUL 30 Index (MT30)?

The main users are international and domestic institutional investors, analysts, researchers, market commentators.

What are main uses for the MSCI TADAWUL 30 Index (MT30)?

Primarily it is used to serve as the basis of Financial Product development such as index derivatives and exchange traded funds (ETFs) and/or as an alternative benchmark for the Saudi Equity market.

Will MSCI TADAWUL 30 Index (MT30) replace TASI or any other exiting Market Indices?

No, TASI and other Market Indices will remain and continue to be available. The MSCI TADAWUL 30 Index (MT30) will complement these offerings, and provide investors with more information on the most liquid stocks.

Where is the MSCI TADAWUL 30 Index (MT30) displayed?

The MSCI TADAWUL 30 Index (MT30) will be published on Tadawul’s website, and made available via the services of Authorized Information Providers.

How will the securities of the MSCI TADAWUL 30 Index (MT30) be selected?

The MSCI TADAWUL 30 Index (MT30) is derived from the MSCI Saudi Arabia IMI constituents universe (Parent Index). This Parent index covers approximately 99% of the free float-adjusted market capitalization of the Saudi Equity market.

In order to be eligible for MSCI TADAWUL 30 Index (MT30), liquidity and invisibility criteria below are applied on this universe:

  • Frequency of Trading:
    The number of days a security traded during a period divided by the total number of market trading days within this period;
  • Traded Value Ratio:
    Annualized Traded Value of a security relative to its Free Float‐Adjusted Market Capitalization;
  • Foreign Ownership Limit:
    Securities which do not allow foreign investments will not be eligible for MSCI TADAWUL 30 Index (MT30). Moreover, the proportion of shares still available to foreign investors relative to the maximum allowed will be considered in the index inclusion and in determining the weight of a security.

From the securities that passed the eligibility criteria above, top 30 in terms of size (Free Float market capitalization) are selected.

Will the securities weight in the MSCI TADAWUL 30 Index (MT30) be capped (maximum limit)?

Yes, securities’ weight will be capped at 15% Capping Threshold to minimize dominance of large securities in the Index (to avoid concentration risk).

How frequent will the index be rebalanced? And when the index will be rebalanced?

The MSCI TADAWUL 30 Index (MT30) will be rebalanced on quarterly basis, at the close of the last business day of May, August, November and February, coinciding with the Review of the MSCI Global Investable Market Indices.

What are the base date and base value of the MSCI TADAWUL 30 Index (MT30)?

Base date is November 26, 2013 and the base value is 1000.

What is the first Financial Product that Tadawul plans to launch based on the MSCI TADAWUL 30 Index (MT30)? And what is the expected date of launch?

Tadawul will introduce exchange-traded derivatives in the first half of 2019. The first financial product will be an index futures contract based on the MSCI TADAWUL 30 Index (MT30).