After semi-annual review .. MSCI: “Hassana” transfers to ‎‎“insurance” shares will attract 2.6 billion riyals to Saudi market

MSCI announced its semi-annual review of its indices, which showed an increase in the relative weight of the Saudi market from 4.14% to 4.24%, after adding insurance shares that were transferred by Hassana Investment Company last year.

MSCI confirmed that the “Social Insurance” shares transferred by Hassana Company, and implemented in January 2022, will be reflected in the rebalancing in May.

It is expected that this will lead to an increase in estimated flows by more than 700 million dollars (2.6 billion riyals) from passive investors alone. After MSCI announces its semi-annual review on May 11, the changes will be effective on June 1, 2023.

This will be in addition to the inflows from the FTSE index, estimated at $600 million (2.25 billion riyals), which reflected transfers during the rebalancing process in March 2022.

Hassana’s measures increased the weight of the Saudi market in the MSCI and FTSE indices, generating nearly $1.3 billion (4.87 billion riyals) in foreign inflows. It is expected to attract more (albeit volatile) inflows from active fund managers

Hassana Investment Company, the investment manager of the General Organization for Social Insurance, announced in January 2022 that it had restructured the corporation’s investments in the Saudi Tadawul market, in the process of implementing its long-term investment strategy, which was recently revised to cope with the change in the size of the corporation’s investment portfolio as a result of transferring The properties of the Public Pension Agency were transferred to the General Organization for Social Insurance according to Cabinet Resolution No. (657) dated 05/11/1442 AH, which has become one of the largest investment portfolios in the Saudi market.

Hassana Company indicated at the time that the restructuring plan consisted of transferring part of the Corporation’s ownership in some local companies listed in the market to entities wholly owned by the Corporation under the supervision and management of Hassana Company, where the transfer process took place after obtaining the required approvals from the relevant authorities.