Institutional investors are increasingly questioning the home bias in their portfolios, says Theodore Niggli, MSCI Barra's global head of indices.
Jordan to step down to frontier market status in November. Israel, South Korea Kuwait, Qatar, and the UAE are under consideration for upgrades, while Argentina and Colombia could be downgraded.
Due for launch next month, the new index will be used as the basis for creating index-linked financial products.
Both are in response to demand from investors seeking new markets and a tradable proxy for the broader Asia ex-Japan index.