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Launching MT30 of 30 Largest Securities

Top index provider MSCI has teamed up with the Saudi Stock Exchange, above, to launch the tradeable MSCI Tadawul 30 Index. (Getty Images)
Top index provider MSCI has teamed up with the Saudi Stock Exchange, above, to launch the tradeable MSCI Tadawul 30 Index. (Getty Images)
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Launching MT30 of 30 Largest Securities

Top index provider MSCI has teamed up with the Saudi Stock Exchange, above, to launch the tradeable MSCI Tadawul 30 Index. (Getty Images)
Top index provider MSCI has teamed up with the Saudi Stock Exchange, above, to launch the tradeable MSCI Tadawul 30 Index. (Getty Images)

MSCI Inc., a leading provider of indexes and portfolio construction and risk management tools and services for global investors, and the Saudi Stock Exchange (Tadawul), the largest stock exchange in the Gulf Cooperation Council (GCC) region in terms of market capitalization and turnover, announced the launch of the MSCI Tadawul 30 Index (MT30), a tradeable index.

MT30 initially comprises the 30 largest securities listed on Saudi Arabian Equity Market, based on free float market capitalization and screened for liquidity and international investability.

The index will be re-balanced four times a year, and the number of securities may vary within a range of 25-35 securities to reflect changes in the underlying market. Individual securities are capped at a maximum 15 percent weighting in the Index.

The index will provide investors with a useful benchmark of the largest liquid companies in Saudi Arabia and serve as the basis for the development of an index futures contract listed on Tadawul and can be licensed for other index linked financial instruments, including mutual funds, derivatives, and exchange-traded products.

Plans for the tradeable index were announced by MSCI and Tadawul in September 2018. MSCI announced the classification of Saudi Arabia to an Emerging Market in its annual global market classification review in June 2018. Saudi Arabia will enter the MSCI Emerging Markets Index in two phases this year, with the first phase set to coincide with MSCI’s May 2019 Semi-Annual Index Review in June.

Robert Ansari, Head of the Middle East at MSCI, comments: “We have seen increasing demand by institutional investors for tradeable indexes that can serve as the basis for liquid instruments to access equity markets globally. The MSCI Tadawul 30 Index (MT30) has been designed with tradability, investability and capping criteria to be able to serve as the basis for index futures and other financial products including derivatives and exchange-traded products.”

Khalid Al Hussan, Chief Executive Officer of Tadawul, adds, “Today’s launch of the MSCI Tadawul 30 Index (MT30) is a significant step forward in facilitating the creation of a derivatives market for Saudi Arabia and advancement of the Vision 2030 Financial Sector Development Program.”

Hussan added that, “With additional derivatives launches in the pipeline, including the introduction of an associated exchange-traded index futures contract, we expect to make significant strides this year in further enhancing market efficiency and creating new opportunities for investors to diversify risk and broaden exposure to the Saudi market, which continues to be the largest and most liquid in the region.”

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Arab World

Sudan Arms Surge Raises Alarms Over Civilian Protection

Sudan says it destroyed 50,000 explosive remnants of war (AFP)
Sudan says it destroyed 50,000 explosive remnants of war (AFP)
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Sudan Arms Surge Raises Alarms Over Civilian Protection

Sudan says it destroyed 50,000 explosive remnants of war (AFP)
Sudan says it destroyed 50,000 explosive remnants of war (AFP)

A surge in deadly violence has gripped the quiet northern town of al-Dabbah, exposing the growing threat posed by the rampant spread of weapons across Sudan in the absence of effective state control.

At least eight people were killed over just two days, four in tribal clashes and four others in a street fight within the town.

The latest bloodshed comes amid a broader climate of insecurity, where gunfire has become a common soundscape. In nearby Omdurman, social media users circulated graphic footage of a young man shot dead in cold blood after resisting an attempt to steal his mobile phone.

Reports of killings and injuries from arguments and brawls settled with bullets have flooded social platforms, painting a grim picture of lawlessness. Armed robbery gangs are said to roam freely, terrorizing civilians with no security forces in sight.

As Sudan’s brutal conflict enters its third year, guns have become as commonplace in towns and villages as household items. What was once settled with fists or sticks is now resolved through the barrel of a gun.

Tens of thousands of civilians have reportedly armed themselves, citing the need for self-defense amid state collapse and the disintegration of law enforcement.

Even before the war erupted, estimates suggested around 2.2 million firearms were circulating in Sudan’s conflict zones. Since then, the figure is believed to have ballooned, with unofficial estimates placing the current number at nearly six million, most acquired privately or informally.

In al-Dabbah, local authorities confirmed tribal clashes erupted between members of the Kababish and Hawaweer tribes, leaving four dead and others wounded before security forces intervened. The following day, a quarrel between vehicle drivers escalated into a gunfight, claiming four more lives.

Meanwhile, in the Omdurman district of Al-Hattana, gunmen fatally shot a man while attempting to snatch his phone, another grim scene that social media brought into public view.

Weapons have now flooded Sudan’s markets. Eyewitnesses and former security officials say that under the brief control of the Rapid Support Forces (RSF) in Khartoum, firearms were openly sold on the street like vegetables, with prices starting at just 20,000 Sudanese pounds, roughly $10.

Security experts say this gun chaos is not a sudden phenomenon but the product of years of unchecked proliferation.

Under former President Omar al-Bashir, weapons were distributed to tribal militias to fight opposing groups. With the eruption of nationwide conflict, arms have spread from the traditional battlegrounds of Darfur and Kordofan to cities in Sudan’s north, east, and center.

Legal analyst Moaz Hadra warned of the growing dangers of “random arming,” saying some groups are being trained and armed outside Sudan to destabilize the country. “Why are these groups being trained abroad instead of within Sudan’s military institutions?” he asked when speaking to Asharq Al-Awsat.

Officials Downplay Risk, Citing Self-Defense

Despite mounting violence, Sudanese security and military officials continue to downplay the threat. They argue that most weapons are held by civilians for self-protection against RSF attacks or roaming bandits. “Should a citizen wait helplessly while armed men storm his home?” one commentator asked rhetorically.

Brigadier General Fath al-Rahman al-Toum, a police spokesman, dismissed fears of total lawlessness, saying that gun crackdowns are ongoing and that firearms possession is being treated as an exceptional situation under extraordinary circumstances.

Others, like Brigadier General Saleh Abdullah, insist that once the war ends, collecting the weapons will be “very easy,” noting that most guns were distributed under strict regulations to reserve forces and can be retrieved using serial numbers registered to each piece. “The army has always managed its weapons according to clear protocols,” he said.

Major General Mujahid Ibrahim added that Sudan’s porous borders, particularly in the west, have made it easier for arms to enter the country unchecked, exacerbating the crisis. Still, military officials say weapons loaned to civilians can be recovered thanks to detailed logs and unique identifiers.

Yet, as al-Dabbah and Omdurman reel from fresh bouts of violence, the gap between official reassurance and on-the-ground chaos continues to widen. With Sudan’s civil war showing no sign of abating, the unchecked spread of guns threatens to tear apart what remains of the country’s fragile social fabric.