Saudi Stocks Set to Join MSCI Emerging-Market Benchmarks

The video discusses the significance of market inclusion, focusing on the Saudi market's MSCI inclusion. It examines the behavior of passive and active funds, market expectations, and reactions. The video compares Saudi's inclusion with UAE and Qatar, highlighting differences in market dynamics. Future predictions suggest that while the market may underperform initially, it could become attractive for active funds as valuations adjust.

What role do government-related entities play in the supply dynamics for passive funds?

In what ways might active funds respond to the market conditions post-inclusion?