Until recently, Saudi Arabia tantalized investors with a plan to float its mammoth oil and gas company's initial public offering on an international exchange — then left them deflated after it shelved the idea.
For now, Saudi Aramco will only be listed on the Tadawul, the country's domestic exchange. However, global investors have taken heart from a little noticed change from the FTSE global equity index series, a major market benchmark that in March classified Saudi Arabia's stock exchange as a "secondary emerging" market.
The FTSE's move — which officially makes Saudi Arabia's domestic market a benchmark available to global investors — coincided with an international charm offensive launched by the kingdom's powerful crown prince, Mohammed bin Salman. It also marked a significant milestone on the prince's quest to diversify Saudi Arabia's oil-reliant economy and gives investors a backdoor to park cash in the country.
Read the full article at CNBC