Last week the chief executive of Saudi Arabia’s stock exchange Tadawul tried to reassure potential investors in Aramco that the bourse will cap the weight of the oil company in the its index to avoid a disproportionate representation of the oil industry. But this sounds easier said than done and it might well be a mixed blessing. Riyadh eyes US$100 billion in proceeds from the Aramco listing. The figure has been challenged more than once including by internal audits, so the actual proceeds from the listing could be half that amount. Still, most observers are worried that the oil company could overburden Tadawul—a small exchange, in which petrochemical stocks already represent about 25 percent of the index. Capping the company’s weight is the obvious move to make in these circumstances, but as Saudi expert Ellen R. Wald wrote recently in a story for Forbes, it presents a new problem: […]