to download the complete report - GulfBase.com

HISTORY AND OVERVIEWExhibit 38: Volatility comparison (360 day volatility)4540353025201510Jun-06 Sep-06 Dec-06 Mar-07 Jun-07 Sep-07 Dec-07 Mar-08 Jun-08 Sep-08 Dec-08Saudi stock indexMSCI emerging market indexSource: BloombergOverall, however, GCC markets have very low or negative correlation with other internationalmarkets as well as amongst themselves. For the period Jan-06 to Dec-08, KSA had a dailycorrelation of 0.15 with MSCI World, 0.69 with MSCI GCC and 0.08 with India. This is in partdue to significant differences of the sectoral breakdown of the GCC and other emergingmarkets. Low correlations offer significant diversification benefits to international investors,thereby adding to the Saudi stock exchange’s attractiveness. Moreover, GCC markets haveunderperformed emerging and developed markets. Hence, they are now providing interestingabsolute and relative value propositions.Exhibit 39: MSCI EMExhibit 40: MSCI GCCIT11%Telecom12%U ilities3%Materials26%Industrials8%Cons Staples2%Financials24%Energy2%Energy19%Utilities1%Cons Staples4%Industrials10%Materials17%Telecom8%Financials53%Source MSCISource MSCIJUNE 2009SAUDI ARABIA FACTBOOK36