Deutsche Bank Markets Research Middle East Saudi Arabia Sti Saudi Arabia Saudi Arabia included in FTSE Secondary EM Index Saudi Arabia expected to weigh —3% in the index, inflows of up to -USD4.5bn expected FTSE announced that Saudi Arabia would be promoted to Secondary Emerging market status in five tranches, from Mar-2019 to Dec-2019. It expects Saudi Arabia to have an index weight within FTSE GEIS of 0.25% and 2.7% within the FTSE Emerging index. Saudi Arabia could be the 10th largest constituent on the EM Index with an expected weightage of 3% as per the data suggested by FTSE Emerging Saudi Arabia Inclusion Index; at current market prices this could translate into USD4.5bn of inflows into the Saudi Equity market. The FTSE Saudi Arabia All Cap Index has 79 constituents and the large cap stocks are likely to attract bulk of the expected inflows; we estimate Sabic could attract some USD727m in inflows; Al Rajhi USD504m, NCB USD385m. Figure 1:FTSE Saudi Arabia stocks : potential flows of USD4.5bn Coessituent Sector MyMeow IUSD ha) Ne merles:op Expected ME !USD bat EM weight Funds Sow (LISO ml Sun Basic ininulas Corp Chemicals 94 0.589E 727 Al Pee% Donkey & lineament Corp Banta 33 OSI% 604 Naia:nal Commettial Boni, 5150 BAAL. 35 026% 385 San Telecom Co Tek.cornmaceimns 46 016% 239 Samba Rouncial Dray BAAL. 15 0-15% 222 San Asabon Mang CoaleeSta Mang I? 012% 100 Move al Co Lid Food Ptocluows IS 912% 150 Brod Sent Banta 11 011% I70 Sad Elemiciry CO Elaeuldry 23 909% 137 Salmis, Bonk BAAL. B 908% 125 Other's 213 63 1.10% 1.664 Total BOB Ib 3.02% ASS Sower Owen?. Sink Fn(. &bombe. Haw. LP Date 29 March 2018 Strategy Update Aleksandar Stojanovski Research Analyst +971-4-361-1786 VA Deutsche Bank AG/London Distributed on: 29/03/2018 03:12:07 GMT Deutsche Bank does and seeks to do business with companies covered in its research reports. Thus, investors should be aware that th