Saudi financial experts said foreign investors will lose an important source of information if MSCI drops the Saudi listings. The MSCI indexes are used as benchmarks by many international fund managers and the dropping of Saudi stocks may impact their investment strategies, forcing them to pare their exposure to the Kingdom's companies. Ma'toug Al-Talhi argued that foreign investors cannot do without international companies providing indices and analyses on markets, including the Saudi stock exchange. Khalid Al-Jemay'iy said Tadawul should provide all information on Saudi companies to any company specialized in financial consultancy, analyses, indices and investment portfolios. Tadawul must ensure full transparency to acknowledge the trust of both foreign investors and Saudis who have invested billions in the market, he said. The Saudi bourse, with a market capitalization of close to $304 billion is the largest in the region. Last year the Tadawul took steps to allow foreign investors greater access to stocks through swap agreements. The market is the region's best performer this year, up about 22 percent to date after losing more than half its value in 2008.
