Catalysts for Emerging Markets ETFs? Maybe

Saudi Arabia appears better positioned compared to other large emerging markets with a greater and increasing proportion of the population entering the labour market thus underpinning consumption growth. This sanguine outlook is also corroborated by the World economic survey on private consumption where Saudi Arabia is a standout among peers,” says Credit Suisse according to Barron’s.

It must be noted that investors should not expect to see Saudi Arabia popping up in EEM anytime soon. Assuming market liberalization there comes to pass, the first ETF destination for Saudi stocks would likely be FM and then, maybe, emphasis on “maybe,” GULF. [Middle East ETF Still Shining]

From there, MSCI would need to promote Saudi Arabia to emerging markets status, a promotion that does not come lightly. Just ask Qatar and UAE, which spent several years on MSCI’s list for possible promotion before actually attaining it. And even with the promotion, which came in June 2013, Qatar and UAE will reside in FM until May. In other words, do not bet on Saudi stocks being found in EEM this year or even 2015 for that matter. [Middle East Stocks Lift Frontier ETFs]

At least two ETF providers have filed for Saudi Arabia ETFs, but those products have yet to come to market.

iShares MSCI Frontier Markets 100 ETF