MSCI liquidity cutoff date for May Semi-Annual Index review is now behind us (April 2015 to March 2016), price cut-off will be any of the last 10 business days of April. MSCI will announce the results of the May review on 12 May , implementation will be as of the close of 31 May.  The most notable impact on MENA will be passive outflows of cUSD150mn (mainly out of UAE and Qatar) as a result of phase two of China overseas additions to the MSCI EM index (removal of the 0.5 inclusion factor).   We highlighted previously that DFM was flirting with deletion based on free float market cap requirements. As of 12 April, DFM appears to be safe from deletion, but with little margin of safety as its free float market cap is only 5% above the level required for existing constituents. ARTC and TMGH have full market cap below standard indices cutoff levels, but they are still way above the buffer allowed (-33%) to remain within their size segment.   AMER currently fails free float market cap requirement (25% below required level) and is likely to be deleted from MSCI EM Small Caps index.     We reiterate our view that we do not expect any additions to MENA standard indices (hence MSCI EM) this May. All potential additions rely on changes in FOL and/or improved liquidity. Most notable potential additions that are FOL change dependent are ENBD, DU, DIC in UAE and  MPHC, QFLS in Qatar. (Mohamad Al Hajj, MSCI)