Tadawul trading screen
MSCI is set to conduct its next index review on May 12, 2026, anticipating no new additions to the Saudi MSCI EM Standard.
“However, SAL Logistics and Mouwasat remain primary candidates for deletion,” the global index provider noted.
In contrast, the Small Cap Index shows potential movement; SAL and Mouwasat are likely to be downgraded to small cap, while AFG International (Cenomi Retail) and Avalon Pharma are the top candidates for exclusion in the May review.
“SAL and Mouwasat are potential MSCI exclusions. SAL is a high conviction candidate for exclusion from the Saudi MSCI EM Standard Index because its market capitalization and free-float adjusted levels are no longer meeting our estimated thresholds (as per closing prices of April 23, 2026),” MSCI said.
It also flags Mouwasat for deletion risk following drop in market capitalization below estimated cut-off for the standard index.
“These potential shifts in the upcoming May review may trigger passive outflows, with final changes expected to be effective June 1, 2026,” MSCI said.
Exclusion Candidates (Saudi MSCI EM Standard Index)
Company
Market Cap
Reason for inclusion/exclusion
SAL
$3.5 bln
Below FF-Mcap limit
Mouwasat
$3.7 bln
Below Mcap limit
Exclusion of SAL and Mouwasat could trigger passive outflows of roughly $100-200 million each, given their current weights within the index.
“We anticipate that SAL and Mouwasat will be added to the Small Cap Index as high conviction inclusions following their likely removal from the Standard Index,” MSCI said.
“Besides these two downgrades, two potential new entrants to the Small Cap index could be – Dar AlMajed which meets market capitalization criteria and AlRamz Real Estate which completed minimum trading length requirement for inclusion,” the global index provider noted.
Regarding removals, Cenomi Retail and Avalon Pharma are the top contenders for exclusion.
“Other names at risk of being removed during this cycle include Theeb, Eastern Province Cement, Jadwa REIT Saudi and Advanced Building Industries.
Furthermore, we see a lower-probability risk of exclusion for SMASCO,” MSCI concluded.
aljazira capital –SAL andMouwasat 27/04/2026
Tadawul trading screen
MSCI is set to conduct its next index review on May 12, 2026, anticipating no new additions to the Saudi MSCI EM Standard.
“However, SAL Logistics and Mouwasat remain primary candidates for deletion,” the global index provider noted.
In contrast, the Small Cap Index shows potential movement; SAL and Mouwasat are likely to be downgraded to small cap, while AFG International (Cenomi Retail) and Avalon Pharma are the top candidates for exclusion in the May review.
“SAL and Mouwasat are potential MSCI exclusions. SAL is a high conviction candidate for exclusion from the Saudi MSCI EM Standard Index because its market capitalization and free-float adjusted levels are no longer meeting our estimated thresholds (as per closing prices of April 23, 2026),” MSCI said.
It also flags Mouwasat for deletion risk following drop in market capitalization below estimated cut-off for the standard index.
“These potential shifts in the upcoming May review may trigger passive outflows, with final changes expected to be effective June 1, 2026,” MSCI said.
Exclusion Candidates (Saudi MSCI EM Standard Index)
Company
Market Cap
Reason for inclusion/exclusion
SAL
$3.5 bln
Below FF-Mcap limit
Mouwasat
$3.7 bln
Below Mcap limit
Exclusion of SAL and Mouwasat could trigger passive outflows of roughly $100-200 million each, given their current weights within the index.
“We anticipate that SAL and Mouwasat will be added to the Small Cap Index as high conviction inclusions following their likely removal from the Standard Index,” MSCI said.
“Besides these two downgrades, two potential new entrants to the Small Cap index could be – Dar AlMajed which meets market capitalization criteria and AlRamz Real Estate which completed minimum trading length requirement for inclusion,” the global index provider noted.
Regarding removals, Cenomi Retail and Avalon Pharma are the top contenders for exclusion.
“Other names at risk of being removed during this cycle include Theeb, Eastern Province Cement, Jadwa REIT Saudi and Advanced Building Industries.
Furthermore, we see a lower-probability risk of exclusion for SMASCO,” MSCI concluded.
