Data released by MSCI Inc. show that 11 Saudi companies have been removed from the MSCI Small Cap Index following financial difficulties linked to the deterioration of the Saudi economy. Five companies were removed in February, while a further six were excluded in May.

The 11 companies are:

▪️ Tobby (Perfect Presentation for Commercial Services Co)
▪️ Eastern Province Cement Co
▪️ Theeb Rent a Car Co
▪️ Lumi Rental Co
▪️ Saudi Manpower Solutions Co (SMASCO)
▪️ Cenomi Retail (AFG International)
▪️ Lujain Corporation
▪️ City Cement Co
▪️ Middle East Paper Co (MEPCO)
▪️ Nice One Beauty Digital Marketing Co
▪️ Sumou Real Estate Co

What is the MSCI Small Cap Index?

The MSCI Small Cap Index is a global equity index published and managed by MSCI Inc., formerly part of Morgan Stanley. It tracks the performance of small-capitalisation companies and serves as a benchmark for investment funds and investors worldwide.

Companies are removed from the index when they no longer meet the required investment criteria, owing to factors such as financial distress, mounting debt, declining profitability, or similar concerns. The exclusion of underperforming companies is intended to reduce risks for investors and preserve the index’s investment standards.