Following the announcement by Morgan Stanley of Israel transitioning into a ‘developed market status’, the Milken Institute has an interesting research report as to the potentially significant risks that the country could face.
According to the report, graduating from the MSCI Emerging Markets Index and achieving a developed market status could negatively affect the inflows and outflows of investments in the Israeli market, unless the deficiencies in the local capital market will be addressed.
In light of these risks, the report outlines the required changes that would enable Israel to benefit from the reclassification and be exposed to a larger pool of investors.
Click here for the Milken Institute Report

