iShares MSCI World ETF (URTH) N-CSRS Certified semi-annual shareholder report (management investment company)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSRS

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-09102

iShares, Inc.

(Exact name of Registrant as specified in charter)

c/o: State Street Bank and Trust Company

1 Iron Street, Boston, MA 02210

(Address of principal executive offices) (Zip code)

The Corporation Trust Incorporated

351 West Camden Street, Baltimore, MD 21201

(Name and address of agent for service)

Registrant’s telephone number, including area code: (415) 670-2000

Date of fiscal year end: April 30, 2017

Date of reporting period: October 31, 2016

Item 1. Reports to Stockholders.

OCTOBER 31, 2016

2016 SEMI-ANNUAL REPORT (UNAUDITED)

iShares, Inc.

^Ø  iShares Asia/Pacific Dividend ETF  |  DVYA  |  NYSE Arca

^Ø  iShares Emerging Markets Dividend ETF  |  DVYE  |  NYSE Arca

Table of Contents

Fund Performance Overviews	5
About Fund Performance	7
Shareholder Expenses	7
Schedules of Investments	8
iShares Asia/Pacific Dividend ETF	8
iShares Emerging Markets Dividend ETF	10
Financial Statements	13
Financial Highlights	16
Notes to Financial Statements	18
Board Review and Approval of Investment Advisory Contract	27
Supplemental Information	34

Fund Performance Overview

iSHARES^® ASIA/PACIFIC DIVIDEND ETF

Performance as of October 31, 2016

The iShares Asia/Pacific Dividend ETF (the “Fund”) seeks to track the investment results of an index composed of relatively high dividend paying equities in Asia/Pacific developed markets, as represented by the Dow Jones Asia/Pacific Select Dividend 30 Index^TM (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the six-month reporting period ended October 31, 2016, the total return for the Fund was 8.32%, net of fees, while the total return for the Index was 8.46%.

	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		19.19%		19.32%		19.56%		19.19%		19.32%		19.56%
Since Inception		2.71%		2.63%		2.98%		13.35%		12.95%		14.73%

The inception date of the Fund was 2/23/12. The first day of secondary market trading was 2/24/12.

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 7 for more information.

Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (5/1/16)		Ending Account Value (10/31/16)		Expenses Paid During Period a		Beginning Account Value (5/1/16)		Ending Account Value (10/31/16)		Expenses Paid During Period a		Annualized Expense Ratio
$	1,000.00	$	1,083.20	$	2.57	$	1,000.00	$	1,022.70	$	2.50		0.49%

^a  Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 7 for more information.

ALLOCATION BY SECTOR

As of 10/31/16

Sector Percentage of
Total  Investments*

Financials	25.85	%
Industrials	16.37
Telecommunication Services	15.38
Consumer Discretionary	12.77
Real Estate	10.56
Energy	6.28
Materials	5.70
Information Technology	3.97
Utilities	3.12
TOTAL	100.00	%

ALLOCATION BY COUNTRY

As of 10/31/16

Country Percentage of
Total  Investments*

Australia	49.74	%
Hong Kong	25.42
New Zealand	11.13
Singapore	7.97
Japan	5.74
TOTAL	100.00	%

* Excludes money market funds.

FUND PERFORMANCE OVERVIEWS 5

Fund Performance Overview

iSHARES^® EMERGING MARKETS DIVIDEND ETF

Performance as of October 31, 2016

The iShares Emerging Markets Dividend ETF (the “Fund”) seeks to track the investment results of an index composed of relatively high dividend paying equities in emerging markets, as represented by the Dow Jones Emerging Markets Select Dividend Index^TM (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the six-month reporting period ended October 31, 2016, the total return for the Fund was 10.86%, net of fees, while the total return for the Index was 11.34%.

	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		15.22%		15.48%		16.30%		15.22%		15.48%		16.30%
Since Inception		(4.05)%		(4.04)%		(4.15)%		(17.62)%		(17.57)%		(18.00)%

The inception date of the Fund was 2/23/12. The first day of secondary market trading was 2/24/12.

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 7 for more information.

Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (5/1/16)		Ending Account Value (10/31/16)		Expenses Paid During Period a		Beginning Account Value (5/1/16)		Ending Account Value (10/31/16)		Expenses Paid During Period a		Annualized Expense Ratio
$	1,000.00	$	1,108.60	$	2.60	$	1,000.00	$	1,022.70	$	2.50		0.49%

^a  Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 7 for more information.

ALLOCATION BY SECTOR

As of 10/31/16

Sector Percentage of
Total  Investments*

Telecommunication Services	15.77	%
Financials	14.62
Materials	13.09
Utilities	12.61
Information Technology	12.08
Consumer Discretionary	10.63
Real Estate	9.82
Industrials	5.69
Energy	3.60
Consumer Staples	2.09
TOTAL	100.00	%

TEN LARGEST COUNTRIES

As of 10/31/16

Country Percentage of
Total  Investments*

Taiwan	24.24	%
China	18.40
Brazil	13.41
Thailand	11.53
South Africa	9.38
Russia	5.72
Malaysia	3.88
Turkey	3.55
Czech Republic	2.68
Poland	2.20
TOTAL	94.99	%

* Excludes money market funds.

6 2016 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS

About Fund Performance

Past performance is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Performance data current to the most recent month-end is available at www.ishares.com. Performance results assume reinvestment of all dividends and capital gain distributions and do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. The investment return and principal value of shares will vary with changes in market conditions. Shares may be worth more or less than their original cost when they are redeemed or sold in the market. Performance for certain funds may reflect a waiver of a portion of investment advisory fees. Without such a waiver, performance would have been lower.

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Certain funds may have a NAV which is determined prior to the opening of regular trading on its listed exchange and their market returns are calculated using the midpoint of the bid/ask spread as of the opening of regular trading on the exchange. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV, respectively.

An index is a statistical composite that tracks a specified financial market or sector. Unlike a fund, an index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by a fund. These expenses negatively impact fund performance. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower.

Shareholder Expenses

As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, including brokerage commissions on purchases and sales of fund shares and (2) ongoing costs, including management fees and other fund expenses. The expense example, which is based on an investment of $1,000 invested on May 1, 2016 and held through October 31, 2016, is intended to help you understand your ongoing costs (in dollars and cents) of investing in a Fund and to compare these costs with the ongoing costs of investing in other funds.

Actual Expenses — The table provides information about actual account values and actual expenses. Annualized expense ratios reflect contractual and voluntary fee waivers, if any. To estimate the expenses that you paid on your account over the period, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number corresponding to your Fund under the heading entitled “Expenses Paid During Period.”

Hypothetical Example for Comparison Purposes — The table also provides information about hypothetical account values and hypothetical expenses based on each Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses. You may use this information to compare the ongoing costs of investing in your Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as brokerage commissions paid on purchases and sales of fund shares. Therefore, the hypothetical examples are useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

ABOUT FUND PERFORMANCE / SHAREHOLDER EXPENSES 7

Schedule of Investments (Unaudited)

iSHARES^® ASIA/PACIFIC DIVIDEND ETF

October 31, 2016

Security	Shares		Value
COMMON STOCKS — 99.82%
AUSTRALIA — 49.65%
ALS Ltd.		310,982	$	1,474,278
Amcor Ltd./Australia		77,598		868,008
AusNet Services		1,123,483		1,282,371
Australia & New Zealand Banking Group Ltd.		90,817		1,924,635
Bendigo & Adelaide Bank Ltd.		249,428		2,112,499
Commonwealth Bank of Australia		22,464		1,254,527
Mineral Resources Ltd.		167,043		1,470,678
Monadelphous Group Ltd.a		317,934		2,254,805
National Australia Bank Ltd.		85,062		1,812,382
Suncorp Group Ltd.		129,657		1,180,990
Sydney Airport		174,566		831,553
Telstra Corp. Ltd.		327,638		1,241,594
Westpac Banking Corp.		57,295		1,328,450
Woodside Petroleum Ltd.		64,137		1,384,599
				20,421,369
HONG KONG — 25.37%
Giordano International Ltd.		4,578,000		2,414,492
Hang Seng Bank Ltd.		55,400		1,000,863
Kerry Properties Ltd.		420,500		1,331,202
New World Development Co. Ltd.		1,494,000		1,862,961
PCCW Ltd.		1,774,000		1,056,871
Sino Land Co. Ltd.		670,000		1,140,448
VTech Holdings Ltd.		132,700		1,629,050
				10,435,887
JAPAN — 5.73%
Mitsui & Co. Ltd.		83,800		1,162,682
TonenGeneral Sekiyu KK		121,000		1,192,901
				2,355,583
NEW ZEALAND — 11.11%
Sky Network Television Ltd.		570,263		1,884,804
SKYCITY Entertainment Group Ltd.		337,936		942,862
Spark New Zealand Ltd.		664,470		1,739,825
				4,567,491
SINGAPORE — 7.96%
Singapore Post Ltd.a		868,200		998,003
Singapore Telecommunications Ltd.		369,100		1,028,887
StarHub Ltd.a		513,082		1,245,935
				3,272,825
TOTAL COMMON STOCKS
(Cost: $44,947,365)				41,053,155

Security	Shares		Value
SHORT-TERM INVESTMENTS — 3.38%
MONEY MARKET FUNDS — 3.38%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.72%b,c,d		1,385,379	$	1,385,517
BlackRock Cash Funds: Treasury, SL Agency Shares
0.29%b,c		4,864		4,864
				1,390,381
TOTAL SHORT-TERM INVESTMENTS
(Cost: $1,390,242)				1,390,381
TOTAL INVESTMENTS IN SECURITIES — 103.20%
(Cost: $46,337,607)e				42,443,536
Other Assets, Less Liabilities — (3.20)%				(1,317,454	)
NET ASSETS — 100.00%			$	41,126,082

^a  All or a portion of this security represents a security on loan. See Note 1.

^b  Affiliated money market fund.

^c  The rate quoted is the annualized seven-day yield of the fund at period end.

^d  All or a portion of this security represents an investment of securities lending collateral. See Note 1.

^e  The cost of investments for federal income tax purposes was $49,044,616. Net unrealized depreciation was $6,601,080, of which $625,160 represented gross unrealized appreciation on securities and $7,226,240 represented gross unrealized depreciation on securities.

8 2016 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® ASIA/PACIFIC DIVIDEND ETF

October 31, 2016

Schedule 1 — Fair Value Measurements

Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, see Note 1.

The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of October 31, 2016. The breakdown of the Fund’s investments into major categories is disclosed in the schedule of investments above.

	Level 1		Level 2		Level 3		Total
Investments:
Assets:
Common stocks	$	41,053,155	$	—	$	—	$	41,053,155
Money market funds		1,390,381		—		—		1,390,381
Total	$	42,443,536	$	—	$	—	$	42,443,536

See notes to financial statements.

SCHEDULESOF INVESTMENTS 9

Schedule of Investments (Unaudited)

iSHARES^® EMERGING MARKETS DIVIDEND ETF

October 31, 2016

Security	Shares		Value
COMMON STOCKS — 96.22%
BRAZIL — 9.88%
AES Tiete Energia SA		403,200	$	2,106,521
Banco do Brasil SA		864,000		7,993,607
CCR SA		441,900		2,421,771
Engie Brasil Energia SA		115,200		1,475,547
Multiplus SA		446,400		6,102,687
Transmissora Alianca de Energia Eletrica SA Units		849,600		5,568,552
				25,668,685
CHILE — 0.83%
Itau CorpBanca		237,731,328		2,160,731
				2,160,731
CHINA — 18.34%
Agile Property Holdings Ltd.		4,608,000		2,561,040
Agricultural Bank of China Ltd. Class H		9,504,000		4,007,567
ANTA Sports Products Ltd.a		576,000		1,663,785
Bank of China Ltd. Class H		7,200,000		3,231,010
Belle International Holdings Ltd.		4,464,000		2,705,507
China Construction Bank Corp. Class H		4,896,000		3,586,050
China Evergrande Groupa		5,076,000		3,357,883
China Shanshui Cement Group Ltd.a,b		1,012,000		65,249
China Shenhua Energy Co. Ltd. Class H		2,016,000		4,195,857
Datang International Power Generation Co. Ltd. Class H		10,760,000		2,899,914
Great Wall Motor Co. Ltd. Class H		3,240,000		3,162,769
Guangzhou R&F Properties Co. Ltd. Class H		1,094,400		1,546,726
Huadian Power International Corp. Ltd. Class H		4,896,000		2,102,385
Huaneng Power International Inc. Class H		3,456,000		2,125,782
Industrial & Commercial Bank of China Ltd. Class H		5,760,000		3,468,694
Shenzhen Investment Ltd.		5,184,000		2,266,164
Shougang Fushan Resources Group Ltd.		12,006,000		2,600,963
Zhejiang Expressway Co. Ltd. Class H		2,016,000		2,113,526
				47,660,871

Security	Shares		Value
CZECH REPUBLIC — 2.68%
CEZ AS		254,160	$	4,783,538
Komercni Banka AS		59,328		2,170,171
				6,953,709
GREECE — 1.92%
OPAP SA		585,537		4,987,298
				4,987,298
INDIA — 0.56%
Reliance Industries Ltd. GDRc		46,224		1,465,301
				1,465,301
MALAYSIA — 3.87%
Berjaya Sports Toto Bhd		2,404,813		1,828,690
British American Tobacco Malaysia Bhd		149,600		1,765,958
Malayan Banking Bhda		1,180,800		2,223,676
Public Bank Bhd		230,400		1,090,761
Sime Darby Bhd		676,800		1,321,333
Telekom Malaysia Bhda		1,166,400		1,818,416
				10,048,834
PHILIPPINES — 1.68%
Globe Telecom Inc.		46,800		1,720,357
PLDT Inc.		83,520		2,638,972
				4,359,329
POLAND — 2.19%
KGHM Polska Miedz SA		115,488		2,085,671
Orange Polska SA		872,640		1,241,608
Powszechny Zaklad Ubezpieczen SA		342,941		2,373,493
				5,700,772
RUSSIA — 5.70%
MMC Norilsk Nickel PJSC		38,946		5,746,882
Mobile TeleSystems PJSC		1,080,890		3,820,467
Unipro PJSC		114,336,000		5,257,085
				14,824,434
SOUTH AFRICA — 9.36%
African Bank Investments Ltd.a,b		2,216,313		1,644
Barloworld Ltd.		378,288		2,450,560
Coronation Fund Managers Ltd.		659,376		3,547,157
Exxaro Resources Ltd.a		272,766		2,006,926
Foschini Group Ltd. (The)		231,408		2,382,305
MTN Group Ltd.		357,408		3,084,856
Nampak Ltd.a		2,217,024		3,091,419
PPC Ltd.		3,131,259		1,277,354
RMB Holdings Ltd.		458,640		2,024,717

10 2016 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® EMERGING MARKETS DIVIDEND ETF

October 31, 2016

Security	Shares		Value
Tiger Brands Ltd.		54,432	$	1,550,217
Truworths International Ltd.		309,312		1,639,187
Woolworths Holdings Ltd./South Africa		216,801		1,256,023
				24,312,365
TAIWAN — 24.17%
Asia Cement Corp.		2,880,000		2,514,267
Asustek Computer Inc.		204,000		1,787,404
China Steel Corp.		2,304,388		1,664,899
Chunghwa Telecom Co. Ltd.		432,000		1,478,444
Far EasTone Telecommunications Co. Ltd.		720,000		1,702,036
Farglory Land Development Co. Ltd.		3,312,263		3,810,034
Gigabyte Technology Co. Ltd.		2,160,000		2,843,951
Highwealth Construction Corp.		2,304,500		3,413,939
Huaku Development Co. Ltd.		1,728,000		3,044,500
IEI Integration Corp.		1,584,000		2,359,122
Inventec Corp.		3,168,475		2,479,960
Lite-On Technology Corp.		1,447,252		2,077,494
MediaTek Inc.		367,000		2,791,095
Merry Electronics Co. Ltd.		1,495,000		5,779,609
Novatek Microelectronics Corp.		576,000		2,162,909
Oriental Union Chemical Corp.		2,304,000		1,441,939
Radiant Opto-Electronics Corp.		1,296,000		2,188,919
Synnex Technology International Corp.		3,168,000		3,383,082
Taiwan Cement Corp.		2,835,000		3,400,293
Taiwan Mobile Co. Ltd.		576,000		2,016,890
TSRC Corp.		2,160,925		2,235,735
U-Ming Marine Transport Corp.		2,880,000		1,998,637
Wan Hai Lines Ltd.		5,662,000		2,789,958
Wistron NeWeb Corp.		328,124		913,954
WPG Holdings Ltd.		2,160,000		2,532,520
				62,811,590
THAILAND — 11.50%
Advanced Info Service PCL NVDR		547,200		2,400,034
Charoen Pokphand Foods PCL NVDR		2,332,800		2,099,670
Intouch Holdings PCL NVDRa		1,756,800		2,660,487
Jasmine International PCL NVDR		52,078,300		12,425,282
Land & Houses PCL NVDRa		10,751,500		2,826,311
PTT Global Chemical PCL NVDR		1,137,600		1,950,311

Security	Shares		Value
Sansiri PCL NVDR		55,022,466	$	2,609,823
Siam Cement PCL (The) NVDR		86,400		1,234,374
Thai Oil PCL NVDR		835,200		1,670,519
				29,876,811
TURKEY — 3.54%
Eregli Demir ve Celik Fabrikalari TAS		3,399,984		4,611,562
Tofas Turk Otomobil Fabrikasi AS		242,208		1,822,495
Turk Telekomunikasyon AS		606,553		1,120,435
Turk Traktor ve Ziraat Makineleri AS		63,169		1,638,104
				9,192,596
TOTAL COMMON STOCKS
(Cost: $249,624,807)				250,023,326
PREFERRED STOCKS — 3.49%
BRAZIL — 3.49%
Cia. Energetica de Minas Gerais		2,059,263		6,341,998
Telefonica Brasil SA		187,200		2,730,671
				9,072,669
TOTAL PREFERRED STOCKS
(Cost: $8,282,775)				9,072,669
SHORT-TERM INVESTMENTS — 4.02%
MONEY MARKET FUNDS — 4.02%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.72%d,e,f		10,293,309		10,294,338
BlackRock Cash Funds: Treasury, SL Agency Shares
0.29%d,e		150,889		150,889
				10,445,227
TOTAL SHORT-TERM INVESTMENTS
(Cost: $10,444,198)				10,445,227

SCHEDULESOF INVESTMENTS 11

Schedule of Investments (Unaudited) (Continued)

iSHARES^® EMERGING MARKETS DIVIDEND ETF

October 31, 2016

	Value
TOTAL INVESTMENTS IN SECURITIES — 103.73%
(Cost: $268,351,780)g	$	269,541,222
Other Assets, Less Liabilities — (3.73)%		(9,696,845	)
NET ASSETS — 100.00%	$	259,844,377

GDR  —  Global Depositary Receipts

NVDR  —  Non-Voting Depositary Receipts

^a  All or a portion of this security represents a security on loan. See Note 1.

^b  Non-income earning security.

^c  This security may be resold to qualified institutional buyers under Rule 144A of the Securities Act of 1933.

^d  Affiliated money market fund.

^e  The rate quoted is the annualized seven-day yield of the fund at period end.

^f  All or a portion of this security represents an investment of securities lending collateral. See Note 1.

^g  The cost of investments for federal income tax purposes was $274,589,434. Net unrealized depreciation was $5,048,212, of which $20,518,692 represented gross unrealized appreciation on securities and $25,566,904 represented gross unrealized depreciation on securities.

Schedule 1 — Fair Value Measurements

Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, see Note 1.

The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of October 31, 2016. The breakdown of the Fund’s investments into major categories is disclosed in the schedule of investments above.

	Level 1		Level 2		Level 3		Total
Investments:
Assets:
Common stocks	$	249,956,433	$	—	$	66,893	$	250,023,326
Preferred stocks		9,072,669		—		—		9,072,669
Money market funds		10,445,227		—		—		10,445,227
Total	$	269,474,329	$	—	$	66,893	$	269,541,222

See notes to financial statements.

12 2016 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS

Statements of Assets and Liabilities (Unaudited)

iSHARES^®, INC.

October 31, 2016

	iShares Asia/Pacific Dividend ETF			iShares Emerging Markets Dividend ETF
ASSETS
Investments, at cost:
Unaffiliated	$	44,947,365		$	257,907,582
Affiliated (Note 2)		1,390,242			10,444,198
Total cost of investments	$	46,337,607		$	268,351,780
Investments in securities, at fair value (including securities on loana) (Note 1):
Unaffiliated	$	41,053,155		$	259,095,995
Affiliated (Note 2)		1,390,381			10,445,227
Total fair value of investments		42,443,536			269,541,222
Foreign currency, at valueb		11,641			224,819
Receivables:
Investment securities sold		19,518			—
Dividends and interest		68,322			477,592
Total Assets		42,543,017			270,243,633
LIABILITIES
Payables:
Collateral for securities on loan (Note 1)		1,385,367			10,293,221
Investment advisory fees (Note 2)		31,568			106,035
Total Liabilities		1,416,935			10,399,256
NET ASSETS	$	41,126,082		$	259,844,377
Net assets consist of:
Paid-in capital	$	49,291,238		$	352,092,097
Distributions in excess of net investment income		(157,614	)		(973,829	)
Accumulated net realized loss		(4,111,138	)		(92,487,739	)
Net unrealized appreciation (depreciation)		(3,896,404	)		1,213,848
NET ASSETS	$	41,126,082		$	259,844,377
Shares outstandingc		900,000			7,200,000
Net asset value per share	$	45.70		$	36.09

^a  Securities on loan with values of $1,253,646 and $9,535,944, respectively. See Note 1.

^b  Cost of foreign currency: $11,661 and $224,101, respectively.

^c  $0.001 par value, number of shares authorized: 500 million and 500 million, respectively.

See notes to financial statements.

FINANCIAL STATEMENTS 13

Statements of Operations (Unaudited)

iSHARES^®, INC.

Six months ended October 31, 2016

	iShares Asia/Pacific Dividend ETF			iShares Emerging Markets Dividend ETF
NET INVESTMENT INCOME
Dividends — unaffiliateda	$	2,431,900		$	7,280,233
Dividends — affiliated (Note 2)		100			610
Securities lending income — affiliated — net (Note 2)		18,121			92,444
		2,450,121			7,373,287
Less: Other foreign taxes (Note 1)		—			(9,336	)
Total investment income		2,450,121			7,363,951
EXPENSES
Investment advisory fees (Note 2)		196,839			575,165
Total expenses		196,839			575,165
Less investment advisory fees waived (Note 2)		—			(73,967	)
Net expenses		196,839			501,198
Net investment income		2,253,282			6,862,753
NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — unaffiliated		(1,631,198	)		(10,064,565	)
Investments — affiliated (Note 2)		12			88
In-kind redemptions — unaffiliated		6,421,985			3,163,975
Foreign currency transactions		(17,517	)		(14,049	)
Realized gain distributions from affiliated funds		—			1
Net realized gain (loss)		4,773,282			(6,914,550	)
Net change in unrealized appreciation/depreciation on:
Investments		(1,796,802	)		19,393,219
Translation of assets and liabilities in foreign currencies		(5,171	)		10,001
Net change in unrealized appreciation/depreciation		(1,801,973	)		19,403,220
Net realized and unrealized gain		2,971,309			12,488,670
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	5,224,591		$	19,351,423

^a  Net of foreign withholding tax of $83,531 and $1,008,239, respectively.

See notes to financial statements.

14 2016 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS

Statements of Changes in Net Assets

iSHARES^®, INC.

	iShares Asia/Pacific Dividend ETF						iShares Emerging Markets Dividend ETF
	Six months ended October 31, 2016 (Unaudited)			Year ended April 30, 2016			Six months ended October 31, 2016 (Unaudited)			Year ended April 30, 2016
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	2,253,282		$	2,060,376		$	6,862,753		$	9,018,318
Net realized gain (loss)		4,773,282			(8,885,785	)		(6,914,550	)		(53,530,191	)
Net change in unrealized appreciation/depreciation		(1,801,973	)		1,425,578			19,403,220			(11,810,246	)
Net increase (decrease) in net assets resulting from operations		5,224,591			(5,399,831	)		19,351,423			(56,322,119	)
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(2,410,896	)		(2,016,323	)		(7,627,583	)		(8,803,104	)
Return of capital		—			(57,564	)		—			(296,548	)
Total distributions to shareholders		(2,410,896	)		(2,073,887	)		(7,627,583	)		(9,099,652	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		74,080,288			24,565,368			141,166,881			48,465,162
Cost of shares redeemed		(92,010,957	)		(15,968,208	)		(45,456,802	)		(42,194,813	)
Net increase (decrease) in net assets from capital share transactions		(17,930,669	)		8,597,160			95,710,079			6,270,349
INCREASE (DECREASE) IN NET ASSETS		(15,116,974	)		1,123,442			107,433,919			(59,151,422	)
NET ASSETS
Beginning of period		56,243,056			55,119,614			152,410,458			211,561,880
End of period	$	41,126,082		$	56,243,056		$	259,844,377		$	152,410,458
Distributions in excess of net investment income included in net assets at end of period	$	(157,614	)	$	—		$	(973,829	)	$	(208,999	)
SHARES ISSUED AND REDEEMED
Shares sold		1,600,000			600,000			3,950,000			1,100,000
Shares redeemed		(2,000,000	)		(400,000	)		(1,250,000	)		(1,200,000	)
Net increase (decrease) in shares outstanding		(400,000	)		200,000			2,700,000			(100,000	)

See notes to financial statements.

FINANCIAL STATEMENTS 15

Financial Highlights

iSHARES^®, INC.

(For a share outstanding throughout each period)

	iShares Asia/Pacific Dividend ETF
	Six months ended Oct. 31, 2016 (Unaudited)			Year ended Apr. 30, 2016			Year ended Apr. 30, 2015			Year ended Apr. 30, 2014			Year ended Apr. 30, 2013			Period from Feb. 23, 2012a to Apr. 30, 2012
Net asset value, beginning of period	$	43.26		$	50.11		$	57.27		$	61.76		$	52.74		$	51.62
Income from investment operations:
Net investment incomeb		1.28			2.13			2.38			2.61			2.71			0.55
Net realized and unrealized gain (loss)c		2.29			(6.69	)		(6.85	)		(4.04	)		8.86			1.14
Total from investment operations		3.57			(4.56	)		(4.47	)		(1.43	)		11.57			1.69
Less distributions from:
Net investment income		(1.13	)		(2.23	)		(2.69	)		(3.06	)		(2.55	)		(0.54	)
Net realized gain		—			—			—			—			—			(0.01	)
Return of capital		—			(0.06	)		—			—			—			(0.02	)
Total distributions		(1.13	)		(2.29	)		(2.69	)		(3.06	)		(2.55	)		(0.57	)
Net asset value, end of period	$	45.70		$	43.26		$	50.11		$	57.27		$	61.76		$	52.74
Total return		8.32	%d		(8.74	)%		(8.04	)%		(1.78	)%		22.87	%		3.32	%d
Ratios/Supplemental data:
Net assets, end of period (000s)	$	41,126		$	56,243		$	55,120		$	48,676		$	43,229		$	13,186
Ratio of expenses to average net assetse		0.49	%		0.49	%		0.49	%		0.49	%		0.49	%		0.49	%
Ratio of net investment income to average net assetse		5.61	%		5.03	%		4.47	%		4.77	%		4.99	%		5.76	%
Portfolio turnover ratef		12	%		32	%		40	%		33	%		32	%		1	%

^a  Commencement of operations.

^b  Based on average shares outstanding throughout each period.

^c  The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

^d  Not annualized.

^e  Annualized for periods of less than one year.

^f  Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units.

See notes to financial statements.

16 2016 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)

	iShares Emerging Markets Dividend ETF
	Six months ended Oct. 31, 2016 (Unaudited)			Year ended Apr. 30, 2016			Year ended Apr. 30, 2015			Year ended Apr. 30, 2014			Year ended Apr. 30, 2013			Period from Feb. 23, 2012a to Apr. 30, 2012
Net asset value, beginning of period	$	33.87		$	45.99		$	48.33		$	53.80		$	53.23		$	54.61
Income from investment operations:
Net investment incomeb		1.18			1.83			2.00			1.96			2.02			0.74
Net realized and unrealized gain (loss)c		2.40			(12.13	)		(2.45	)		(5.18	)		0.56			(1.98	)
Total from investment operations		3.58			(10.30	)		(0.45	)		(3.22	)		2.58			(1.24	)
Less distributions from:
Net investment income		(1.36	)		(1.76	)		(1.89	)		(2.25	)		(2.01	)		(0.14	)
Return of capital		—			(0.06	)		—			—			—			—
Total distributions		(1.36	)		(1.82	)		(1.89	)		(2.25	)		(2.01	)		(0.14	)
Net asset value, end of period	$	36.09		$	33.87		$	45.99		$	48.33		$	53.80		$	53.23
Total return		10.86	%d		(22.45	)%		(0.91	)%		(5.86	)%		5.09	%		(2.27	)%d
Ratios/Supplemental data:
Net assets, end of period (000s)	$	259,844		$	152,410		$	211,562		$	178,838		$	131,806		$	15,970
Ratio of expenses to average net assetse		0.49	%		0.49	%		0.49	%		0.49	%		0.49	%		0.49	%
Ratio of expenses to average net assets prior to waived feese		0.56	%		0.68	%		0.68	%		0.68	%		0.68	%		0.68	%
Ratio of net investment income to average net assetse		6.71	%		5.31	%		4.42	%		4.01	%		3.80	%		7.51	%
Portfolio turnover ratef		22	%		67	%		59	%		44	%		41	%		2	%

^a  Commencement of operations.

^b  Based on average shares outstanding throughout each period.

^c  The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

^d  Not annualized.

^e  Annualized for periods of less than one year.

^f  Portfolio turnover rates exclude portfolio securities received or delivered in Creation Units but include portfolio transactions that are executed as a result of the Fund processing capital share transactions in Creation Units partially for cash in U.S. dollars. Excluding such cash transactions, the portfolio turnover rates for the six months ended October 31, 2016 and the years ended April 30, 2016, April 30, 2015, April 30, 2014 and April 30, 2013 were 12%, 55%, 43%, 39% and 41%, respectively. See Note 4.

See notes to financial statements.

FINANCIAL HIGHLIGHTS 17

Notes to Financial Statements (Unaudited)

iSHARES^®, INC.

iShares, Inc. (the “Company”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Company was incorporated under the laws of the State of Maryland on September 1, 1994 pursuant to Articles of Incorporation as subsequently amended and restated.

These financial statements relate only to the following funds (each, a “Fund,” and collectively, the “Funds”):

iShares ETF	Diversification Classification
Asia/Pacific Dividend	Non-diversified
Emerging Markets Dividend	Diversified

The investment objective of each Fund is to seek investment results that correspond generally to the price and yield performance, before fees and expenses, of its underlying index. The investment adviser uses a “passive” or index approach to try to achieve each Fund’s investment objective.

Pursuant to the Company’s organizational documents, the Funds’ officers and directors are indemnified against certain liabilities that may arise out of the performance of their duties to the Funds. Additionally, in the normal course of business, the Funds enter into contracts with service providers that contain general indemnification clauses. The Funds’ maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Funds that have not yet occurred.

1. SIGNIFICANT ACCOUNTING POLICIES

The following significant accounting policies are consistently followed by each Fund in the preparation of its financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The preparation of financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Each Fund is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies.

SECURITY VALUATION

Each Fund’s investments are valued at fair value each day that the Fund’s listing exchange is open and, for financial reporting purposes, as of the report date should the reporting period end on a day that the Fund’s listing exchange is not open. U.S. GAAP defines fair value as the price a fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) provides oversight of the valuation of investments for the Funds. The investments of each Fund are valued pursuant to policies and procedures developed by the Global Valuation Committee and approved by the Board of Directors of the Company (the “Board”).

• Equity investments traded on a recognized securities exchange are valued at that day’s last reported trade price or the official closing price, as applicable, on the exchange where the stock is primarily traded. Equity investments traded on a recognized exchange for which there were no sales on that day are valued at the last traded price.

• Open-end U.S. mutual funds (including money market funds) are valued at that day’s published net asset value (“NAV”).

18 2016 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

In the event that application of these methods of valuation results in a price for an investment which is deemed not to be representative of the fair value of such investment or if a price is not available, the investment will be valued based upon other available factors deemed relevant by the Global Valuation Committee, in accordance with policies approved by the Board. These factors include but are not limited to (i) attributes specific to the investment; (ii) the principal market for the investment; (iii) the customary participants in the principal market for the investment; (iv) data assumptions by market participants for the investment, if reasonably available; (v) quoted prices for similar investments in active markets; and (vi) other factors, such as future cash flows, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and/or default rates. Valuations based on such factors are reported to the Board on a quarterly basis.

The Global Valuation Committee employs various methods for calibrating valuation approaches for investments where an active market does not exist, including regular due diligence of the Company’s pricing vendors, a regular review of key inputs and assumptions, transactional back-testing or disposition analysis to compare unrealized gains and losses to realized gains and losses, reviews of missing or stale prices, reviews of large movements in market values, and reviews of market related activity.

Fair value pricing could result in a difference between the prices used to calculate a Fund’s NAV and the prices used by the Fund’s underlying index, which in turn could result in a difference between the Fund’s performance and the performance of the Fund’s underlying index.

Various inputs are used in determining the fair value of financial instruments. Inputs may be based on independent market data (“observable inputs”) or they may be internally developed (“unobservable inputs”). These inputs are categorized into a disclosure hierarchy consisting of three broad levels for financial reporting purposes as follows:

• Level 1 — Unadjusted quoted prices in active markets for identical assets or liabilities;

• Level 2 — Inputs other than quoted prices included within Level 1 that are observable for the asset or liability either directly or indirectly, including quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not considered to be active, inputs other than quoted prices that are observable for the asset or liability (such as exchange rates, financing terms, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs; and

• Level 3 — Unobservable inputs for the asset or liability based on the best information available in the circumstances, to the extent observable inputs are not available, including the Global Valuation Committee’s assumptions used in determining the fair value of investments.

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgement exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The fair value hierarchy for each Fund’s investments is included in its schedule of investments.

Changes in valuation techniques may result in transfers in or out of an assigned level within the fair value hierarchy. In accordance with the Company’s policy, transfers between different levels of the fair value hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of values determined for financial instruments are based on the pricing transparency of the financial instruments and are not necessarily an indication of the risks associated with investing in those securities.

NOTESTO FINANCIAL STATEMENTS 19

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

SECURITY TRANSACTIONS AND INCOME RECOGNITION

Security transactions are accounted for on trade date. Dividend income and capital gain distributions, if any, are recognized on the ex-dividend date, net of any foreign taxes withheld at source. Any taxes withheld that are reclaimable from foreign tax authorities as of October 31, 2016 are reflected in tax reclaims receivable. Non-cash dividends received in the form of stock in an elective dividend, if any, are recorded as dividend income at fair value. Distributions received by the Funds may include a return of capital that is estimated by management. Such amounts are recorded as a reduction of the cost of investments or reclassified to capital gains. Interest income is accrued daily. Realized gains and losses on investment transactions are determined using the specific identification method.

FOREIGN CURRENCY TRANSLATION

The accounting records of the Funds are maintained in U.S. dollars. Foreign currencies, as well as investment securities and other assets and liabilities denominated in foreign currencies, are translated into U.S. dollars using exchange rates deemed appropriate by the investment adviser. Purchases and sales of securities, income receipts and expense payments are translated into U.S. dollars on the respective dates of such transactions.

Each Fund does not isolate the effect of fluctuations in foreign exchange rates from the effect of fluctuations in the market prices of securities. Such fluctuations are reflected by the Funds as a component of realized and unrealized gains and losses from investments for financial reporting purposes.

FOREIGN TAXES

The Funds may be subject to foreign taxes (a portion of which may be reclaimable) on income, stock dividends, capital gains on investments, or certain foreign currency transactions. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign jurisdictions in which the Funds invest. These foreign taxes, if any, are paid by the Funds and are reflected in their statements of operations as follows: foreign taxes withheld at source are presented as a reduction of income, foreign taxes on securities lending income are presented as a reduction of securities lending income, foreign taxes on stock dividends are presented as “other foreign taxes”, and foreign taxes on capital gains from sales of investments and foreign taxes on foreign currency transactions are included in their respective net realized gain (loss) categories. Foreign taxes payable or deferred as of October 31, 2016, if any, are disclosed in the Funds’ statements of assets and liabilities.

DISTRIBUTIONS TO SHAREHOLDERS

Dividends and distributions paid by each Fund are recorded on the ex-dividend dates. Distributions are determined on a tax basis and may differ from net investment income and net realized capital gains for financial reporting purposes. Dividends and distributions are paid in U.S. dollars and cannot be automatically reinvested in additional shares of the Funds.

LOANS OF PORTFOLIO SECURITIES

Each Fund may lend its investment securities to approved borrowers, such as brokers, dealers and other financial institutions. The borrower pledges and maintains with the Fund collateral consisting of cash, an irrevocable letter of credit issued by a bank, or securities issued or guaranteed by the U.S. government. The initial collateral received by each Fund is required to have a value of at least 102% of the current value of the loaned securities for securities traded on U.S. exchanges and a value of at least 105% for all other securities. The collateral is maintained thereafter at a value equal to at least 100% of the current value of the securities on loan. The market value of the loaned securities is determined at the close of each business day of the Funds. Any additional required collateral is delivered to the Funds and any excess collateral is returned by the Funds on the next business

20 2016 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

day. During the term of the loan, each Fund is entitled to all distributions made on or in respect of the loaned securities but does not receive interest income on securities received as collateral. Loans of securities are terminable at any time and the borrower, after notice, is required to return borrowed securities within the standard time period for settlement of securities transactions.

On October 11, 2016, BlackRock, Inc. (“BlackRock”) implemented changes required by amendments to Rule 2a-7 under the 1940 Act, which governs the operations of U.S. money market funds. The Funds may be exposed to additional risks when reinvesting the cash collateral in money market funds that do not seek to maintain a stable NAV per share of $1.00 and which may be subject to redemption gates or liquidity fees under certain circumstances.

Cash received as collateral for securities on loan may be reinvested in certain short-term instruments either directly on behalf of a fund or through one or more joint accounts or money market funds, including those managed by BlackRock Fund Advisors (“BFA”), the Funds’ investment adviser, or its affiliates. As of October 31, 2016, any securities on loan were collateralized by cash and/or U.S. government obligations. Cash collateral received was invested in money market funds managed by BFA and is disclosed in the schedules of investments. The securities on loan for each Fund are also disclosed in its schedule of investments. The total value of any securities on loan as of October 31, 2016 and the total value of the related cash collateral are disclosed in the statements of assets and liabilities. Income earned by the Funds from securities lending is disclosed in the statements of operations.

The risks of securities lending include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. To mitigate these risks, the Funds benefit from a borrower default indemnity provided by BlackRock. BlackRock’s indemnity allows for full replacement of securities lent. Each Fund could suffer a loss if the value of the investments purchased with cash collateral falls below the value of the cash collateral received.

Securities lending transactions are entered into by the Funds under Master Securities Lending Agreements (“MSLA”) which provide the right, in the event of default (including bankruptcy or insolvency) for the non-defaulting party to liquidate the collateral and calculate a net exposure to the defaulting party or request additional collateral. In the event that a borrower defaults, a Fund, as lender, would offset the market value of the collateral received against the market value of the securities loaned. The value of the collateral is typically greater than that of the market value of the securities loaned, leaving the lender with a net amount payable to the defaulting party. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against such a right of offset in the event of an MSLA counterparty’s bankruptcy or insolvency. Under the MSLA, the borrower can resell or re-pledge the loaned securities, and a Fund can reinvest cash collateral, or, upon an event of default, resell or re-pledge the collateral.

The following table is a summary of securities lending agreements which are subject to offset under an MSLA as of October 31, 2016:

iShares ETF and Counterparty	Market Value of Securities on Loan		Cash Collateral Received  a		Net Amount
Asia/Pacific Dividend
Goldman Sachs & Co.	$	343,783	$	343,783	$	—
Morgan Stanley & Co. LLC		630,215		630,215		—
State Street Bank & Trust Company		5,171		5,171		—
UBS Securities LLC		274,477		274,477		—
	$	1,253,646	$	1,253,646	$	—

NOTESTO FINANCIAL STATEMENTS 21

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

iShares ETF and Counterparty	Market Value of Securities on Loan		Cash Collateral Received  a		Net Amount
Emerging Markets Dividend
Citigroup Global Markets Inc.	$	408,247	$	408,247	$	—
Deutsche Bank AG		517,821		517,821		—
Deutsche Bank Securities Inc.		1,059,093		1,059,093		—
Goldman Sachs & Co.		1,455,123		1,455,123		—
Merrill Lynch, Pierce, Fenner & Smith		1,768,347		1,768,347		—
Morgan Stanley & Co. International PLC		4,331		4,331		—
Morgan Stanley & Co. LLC		4,140,266		4,140,266		—
UBS Securities LLC		182,716		182,716		—
	$	9,535,944	$	9,535,944	$	—

^a  Collateral received in excess of the market value of securities on loan is not presented in this table. The total cash collateral received by each Fund is disclosed in the Fund’s statement of assets and liabilities.

2. INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES

Pursuant to an Investment Advisory Agreement with the Company, BFA manages the investment of each Fund’s assets. BFA is a California corporation indirectly owned by BlackRock. Under the Investment Advisory Agreement, BFA is responsible for substantially all expenses of the Funds, except interest, taxes, brokerage commissions and other expenses connected with the execution of portfolio transactions, distribution fees, litigation expenses and any extraordinary expenses.

For its investment advisory services to the iShares Asia/Pacific Dividend ETF (“DVYA”), BFA is entitled to an annual investment advisory fee of 0.49% based on the average daily net assets of the Fund.

For its investment advisory services to the iShares Emerging Markets Dividend ETF (“DVYE”), BFA is entitled to an annual investment advisory fee of 0.49% based on the average daily net assets of the Fund.

Prior to August 1, 2016, for its investment advisory services to DVYE, BFA was entitled to an annual investment advisory fee of 0.68% based on the average daily net assets of the Fund. In addition, the Fund indirectly pays its pro rata share of fees and expenses attributable to its investments in other investment companies (“acquired fund fees and expenses”). The total of the investment advisory fee and acquired fund fees and expenses are a fund’s total annual operating expenses. BFA has contractually agreed to waive a portion of its investment advisory fees for the Fund through August 31, 2022 in an amount equal to the acquired fund fees and expenses attributable to the Fund’s investments in other iShares funds, if any. BFA also contractually agreed to waive any additional portion of its investment advisory fees for the Fund through August 31, 2017 necessary to limit total annual operating expenses after fee waiver to 0.49% of average daily net assets.

At a meeting held on June 21-23, 2016, the Board approved a permanent reduction to the advisory fee rate charged to DVYE. The contractual waiver to limit total annual operating expenses after fee waiver was terminated effective August 1, 2016, pursuant to a written agreement between the Company and BFA, and in conjunction with the annual advisory fee reduction from 0.68% to 0.49%.

The U.S. Securities and Exchange Commission (the “SEC”) has issued an exemptive order which permits BlackRock Institutional Trust Company, N.A. (“BTC”), an affiliate of BFA, to serve as securities lending agent for the Funds, subject to applicable conditions. As securities lending agent, BTC bears all operational costs directly related to securities lending. Each Fund is responsible for fees in connection with the investment of cash collateral received for securities on loan in a money market fund managed by BFA, however, BTC has agreed to reduce the amount of securities lending income it receives in order to effectively

22 2016 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

limit the collateral investment fees each Fund bears to an annual rate of 0.04% (the “collateral investment fees”). Securities lending income is equal to the total of income earned from the reinvestment of cash collateral, net of fees and other payments to and from borrowers of securities, and less the collateral investment fees. The Funds retain a portion of securities lending income and remit the remaining portion to BTC as compensation for its services as securities lending agent.

Pursuant to a securities lending agreement, each Fund retains 80% of securities lending income and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees. In addition, commencing the business day following the date that the aggregate securities lending income plus the collateral investment fees generated across all 1940 Act iShares exchange-traded funds (the “iShares ETF Complex”) in a given calendar year exceeds the aggregate securities lending income generated across the iShares ETF Complex in the calendar year 2013, each Fund, pursuant to a securities lending agreement, will retain for the remainder of that calendar year 85% of securities lending income and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.

For the six months ended October 31, 2016, the total of securities lending agent services and collateral investment fees paid were as follows:

iShares ETF	Fees Paid to BTC
Asia/Pacific Dividend	$	4,521
Emerging Markets Dividend		22,270

BlackRock Investments, LLC, an affiliate of BFA, is the distributor for each Fund. Pursuant to the distribution agreement, BFA is responsible for any fees or expenses for distribution services provided to the Funds.

Cross trading is the buying or selling of portfolio securities between funds to which BFA (or an affiliate) serves as investment adviser. At its regularly scheduled quarterly meetings, the Board reviews such transactions as of the most recent calendar quarter for compliance with the requirements and restrictions set forth by Rule 17a-7.

For the six months ended October 31, 2016, the purchase and sales transactions executed by the iShares Asia/Pacific Dividend ETF pursuant to Rule 17a-7 under the 1940 Act were $793,456 and $  —, respectively.

Each Fund may invest its positive cash balances in certain money market funds managed by BFA or an affiliate. The income earned on these temporary cash investments is included in “Dividends – affiliated” in the statements of operations.

The PNC Financial Services Group, Inc. is the largest stockholder of BlackRock and is considered to be an affiliate of the Funds for 1940 Act purposes.

The iShares Emerging Markets Dividend ETF, in order to improve its portfolio liquidity and its ability to trackits underlying index, may invest in shares of other iShares funds that invest in securities in the Fund’s underlying index.

Certain directors and officers of the Company are also officers of BTC and/or BFA.

NOTESTO FINANCIAL STATEMENTS 23

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

3. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments (excluding in-kind transactions and short-term investments) for the six months ended October 31, 2016 were as follows:

iShares ETF	Purchases		Sales
Asia/Pacific Dividend	$	9,016,811	$	9,417,060
Emerging Markets Dividend		86,733,621		43,751,389

In-kind transactions (see Note 4) for the six months ended October 31, 2016 were as follows:

iShares ETF	In-kind Purchases		In-kind Sales
Asia/Pacific Dividend	$	73,605,189	$	91,251,424
Emerging Markets Dividend		76,422,005		24,675,009

4. CAPITAL SHARE TRANSACTIONS

Capital shares are issued and redeemed by each Fund only in aggregations of a specified number of shares or multiples thereof (“Creation Units”) at NAV. Except when aggregated in Creation Units, shares of each Fund are not redeemable. Transactions in capital shares for each Fund are disclosed in detail in the statements of changes in net assets.

The consideration for the purchase of Creation Units of a fund in the Company generally consists of the in-kind deposit of a designated portfolio of securities and a specified amount of cash. Certain funds in the Company may be offered in Creation Units solely or partially for cash in U.S. dollars. Investors purchasing and redeeming Creation Units may pay a purchase transaction fee and a redemption transaction fee directly to State Street Bank and Trust Company, the Company’s administrator, to offset transfer and other transaction costs associated with the issuance and redemption of Creation Units, including Creation Units for cash. Investors transacting in Creation Units for cash may also pay an additional variable charge to compensate the relevant fund for certain transaction costs (i.e., stamp taxes, taxes on currency or other financial transactions, and brokerage costs) and market impact expenses relating to investing in portfolio securities. Such variable charges, if any, are included in “Proceeds from shares sold” in the statements of changes in net assets.

5. PRINCIPAL RISKS

In the normal course of business, each Fund’s investment activities expose it to various types of risk associated with the financial instruments and markets in which it invests. The significant types of financial risks each Fund is exposed to include market risk and credit risk. Each Fund’s prospectus provides details of these and other types of risk.

BFA uses a “passive” or index approach to try to achieve each Fund’s investment objective following the securities included in its underlying index during upturns as well as downturns. BFA does not take steps to reduce market exposure or to lessen the effects of a declining market. Divergence from the underlying index and the composition of the portfolio is monitored by BFA.

MARKET RISK

Market risk arises mainly from uncertainty about future values of financial instruments influenced by price, currency and interest rate movements. It represents the potential loss a fund may suffer through holding market positions in the face of market movements. A fund is exposed to market risk by virtue of its investment in equity, fixed income and/or financial derivative

24 2016 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

instruments or indirectly by virtue of its investment in underlying funds. The fair value of securities held by a fund may decline due to general market conditions, economic trends or events that are not specifically related to the issuers of the securities including local, regional or global political, social or economic instability or to factors that affect a particular industry or group of industries. The extent of a fund’s exposure to market risk is the market value of the investments held as shown in the fund’s schedule of investments.

A diversified portfolio, where this is appropriate and consistent with a fund’s objectives, minimizes the risk that a price change of a particular investment will have a material impact on the NAV of a fund. The investment concentrations within each Fund’s portfolio are disclosed in its schedule of investments.

Investing in the securities of non-U.S. issuers involves certain considerations and risks not typically associated with securities of U.S. issuers. Such risks include, but are not limited to: generally less liquid and less efficient securities markets; generally greater price volatility; exchange rate fluctuations and exchange controls; imposition of restrictions on the expatriation of funds or other assets of a Fund; less publicly available information about issuers; the imposition of withholding or other taxes; higher transaction and custody costs; settlement delays and risk of loss attendant in settlement procedures; difficulties in enforcing contractual obligations; less regulation of securities markets; different accounting, disclosure and reporting requirements; more substantial governmental involvement in the economy; higher inflation rates; greater social, economic and political uncertainties; the risk of nationalization or expropriation of assets; and the risk of war. These risks are heightened for investments in issuers from countries with less developed markets.

The United States and the European Union, along with the regulatory bodies of a number of countries including Japan, Australia and Canada (collectively, “Sanctioning Bodies”), have imposed sectorial economic sanctions on certain Russian individuals and Russian corporate entities which include prohibitions on transacting in or dealing in new debt of longer than 30 or 90 days maturity or new equity of such issuers. Securities held by a fund issued prior to the date of the sanctions being imposed are not currently subject to any restrictions under the sanctions. However, compliance with each of these sanctions may impair the ability of a fund to buy, sell, hold, receive or deliver the affected securities or other securities of such issuers. The Sanctioning Bodies could also institute broader sanctions on Russia. These sanctions, or even the threat of further sanctions, may result in the decline of the value and liquidity of Russian securities, a weakening of the ruble or other adverse consequences to the Russian economy. Current or future sanctions may result in Russia taking counter measures or retaliatory actions, which may further impair the value and liquidity of Russian securities. These retaliatory measures may include the immediate freeze of Russian assets held by a fund.

CREDIT RISK

Credit risk is the risk that an issuer or guarantor of debt instruments or the counterparty to a financial transaction, including derivatives contracts, repurchase agreements or loans of portfolio securities, is unable or unwilling to make timely interest and/or principal payments or to otherwise honor its obligations. BFA and its affiliates manage counterparty credit risk by entering into transactions only with counterparties that they believe have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose a fund to issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of a fund’s exposure to credit and counterparty risks with respect to those financial assets is approximated by their value recorded in its statement of assets and liabilities.

6. INCOME TAX INFORMATION

Each Fund is treated as an entity separate from the Company’s other funds for federal income tax purposes. It is the policy of each Fund to qualify as a regulated investment company by complying with the provisions applicable to regulated investment

NOTESTO FINANCIAL STATEMENTS 25

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

companies, as defined under Subchapter M of the Internal Revenue Code of 1986, as amended, and to annually distribute substantially all of its ordinary income and any net capital gains (taking into account any capital loss carryforwards) sufficient to relieve it from all, or substantially all, federal income and excise taxes. Accordingly, no provision for federal income taxes is required.

For purposes of U.S. GAAP, in-kind redemptions are treated as sales of securities resulting in realized capital gains or losses to the Funds. Because such gains or losses are not taxable to the Funds and are not distributed to existing Fund shareholders, the gains or losses are reclassified from accumulated net realized gain (loss) to paid-in capital at the end of the Funds’ tax year. These reclassifications have no effect on net assets or NAV per share.

The tax character of current year distributions will be determined at the end of the current fiscal year.

As of April 30, 2016, the Funds’ fiscal year-end, the following Funds had non-expiring capital loss carryforwards available to offset future realized capital gains as follows:

iShares ETF	Non- Expiring
Asia/Pacific Dividend	$	3,928,193
Emerging Markets Dividend		36,696,384

The Funds may own shares in certain foreign investment entities, referred to, under U.S. tax law, as “passive foreign investment companies.” The Funds may elect to mark-to-market annually the shares of each passive foreign investment company and would be required to distribute to shareholders any such marked-to-market gains.

Management has analyzed tax laws and regulations and their application to the Funds as of October 31, 2016, inclusive of the open tax return years, and does not believe there are any uncertain tax positions that require recognition of a tax liability in the Funds’ financial statements.

7. SUBSEQUENT EVENTS

Management has evaluated the impact of all subsequent events on the Funds through the date the financial statements were available to be issued and has determined that there were no subsequent events requiring adjustment or disclosure in the financial statements.

26 2016 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract

iSHARES^®, INC.

I. iShares Asia/Pacific Dividend ETF

Under Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”), the Company’s Board of Directors (the “Board”), including a majority of Directors who are not “interested persons” of the Company (as that term is defined in the 1940 Act) (the “Independent Directors”), is required annually to consider and approve the Investment Advisory Contract between the Company and BFA (the “Advisory Contract”) on behalf of the Fund. The Independent Directors requested, and BFA provided, such information as the Independent Directors, with advice from independent counsel, deemed reasonably necessary to evaluate the Advisory Contract. A committee of all of the Independent Directors (the “15(c) Committee”), with independent counsel, met with management on April 28, 2016 and May 9, 2016. At these meetings, the 15(c) Committee reviewed and discussed information provided in response to the 15(c) Committee’s initial requests, and requested certain additional information, which management agreed to provide. At a meeting held on May 17, 2016, management presented information to the Board relating to the continuance of the Advisory Contract, including information requested by the 15(c) Committee during its meetings. The Board, including the Independent Directors, reviewed and discussed such information at length. The Independent Directors requested from management certain additional information, which management agreed to provide. At a meeting held on June 21-23, 2016, the Board, including the Independent Directors, reviewed the additional information provided by management in response to these requests. After extensive discussions, the Board, including all of the Independent Directors, approved the continuance of the Advisory Contract for the Fund, based on a review of qualitative and quantitative information provided by BFA, including the additional information management provided at the request of the Independent Directors. The Board noted its satisfaction with the extent and quality of information provided and its frequent interactions with management, as well as the detailed responses and other information provided by BFA. The Board also noted that the Board and BFA agreed to discuss potential enhancements and adjustments to the 15(c) process for the coming year. The Independent Directors were advised by their independent counsel throughout the process, including about the legal standards applicable to their review. In approving the Advisory Contract for the Fund, the Board, including the Independent Directors, considered the following factors, no one of which was controlling, and reached the following conclusions:

Expenses and Performance of the Fund — The Board reviewed statistical information prepared by Broadridge Financial Solutions Inc. (“Broadridge”), an independent provider of investment company data, regarding the expense ratio components, including gross and net total expenses, waivers/reimbursements (if any), and underlying fund fees and expenses (if any) of the Fund in comparison with the same information for other exchange traded funds (including, where applicable, funds sponsored by an “at cost” service provider) and, in the limited instances where no comparable ETFs existed and the comparison group would not otherwise be reasonable in Broadridge’s judgment, pure index institutional mutual funds, objectively selected by Broadridge as comprising the Fund’s applicable peer group pursuant to Broadridge’s proprietary ETF methodology (the “Peer Group”). The Board was provided with a detailed description of Broadridge’s proprietary ETF methodology used by Broadridge to determine the Fund’s Peer Group. The Board further noted that due to the limitations in providing comparable funds in the Peer Group, the statistical information provided in Broadridge’s report may or may not provide meaningful direct comparisons to the Fund in all instances.

The Board also noted that the investment advisory fee rate and overall expenses (net of waivers and reimbursements) for the Fund were lower than the median of the investment advisory fee rates and overall expenses (net of waivers and reimbursements) of the funds in its Peer Group, excluding iShares funds.

In addition, to the extent that any of the comparison funds included in the Peer Group, excluding iShares funds, track the same index as the Fund, Broadridge also provided, and the Board reviewed, a comparison of the Fund’s performance for the one-, three-, five-, ten-year, and since inception periods, as applicable, and for the “last quarter” period ended December 31, 2015, to that of such relevant comparison funds for the same periods.

BOARD REVIEWAND APPROVALOF INVESTMENT ADVISORY CONTRACT 27

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

The Board noted that the Fund seeks to track its own underlying index and that, during the year, the Board received periodic reports on the Fund’s short- and longer-term performance in comparison with its underlying index. Such periodic comparative performance information, including additional detailed information on certain specific iShares funds requested by the Board, was also considered. The Board noted that the Fund generally performed in line with its underlying index over the relevant periods.

Based on this review, the other factors considered at the meeting, and their general knowledge of ETF pricing, the Board concluded that the investment advisory fee rate and expense level and the historical performance of the Fund supported the Board’s approval of the continuance of the Advisory Contract for the coming year.

Nature, Extent and Quality of Services Provided by BFA — Based on management’s representations, including information about recent and proposed enhancements to the iShares business, including with respect to capital markets support and analysis, product design and other services, the Board expected that there would be no diminution in the scope of services required of or provided by BFA under the Advisory Contract for the coming year as compared to the scope of services provided by BFA during prior years. In reviewing the scope of these services, the Board considered BFA’s investment philosophy and experience, noting that BFA and its affiliates have committed significant resources over time, including during the past year, to supporting the iShares funds and their shareholders. The Board also considered BFA’s compliance program and its compliance record with respect to the Fund. In that regard, the Board noted that BFA reports to the Board about portfolio management and compliance matters on a periodic basis in connection with regularly scheduled meetings of the Board, and on other occasions as necessary and appropriate, and has provided information and made appropriate officers available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Fund, as well as the resources available to them in managing the Fund. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies provided at the June 21-23, 2016 meeting and throughout the previous year, and matters related to BFA’s portfolio compliance policies and procedures. The Board noted that the Fund had met its investment objective consistently since its inception date.

Based on review of this information, and the performance information discussed above, the Board concluded that the nature, extent and quality of services provided by BFA to the Fund under the Advisory Contract supported the Board’s approval of the continuance of the Advisory Contract for the coming year.

Costs of Services Provided to the Fund and Profits Realized by BFA and its Affiliates — The Board reviewed information about the profitability to BlackRock of the Fund, based on the fees payable to BFA and its affiliates (including fees under the Advisory Contract), and all other sources of revenue and expense to BFA and its affiliates from the Funds’ operations for the last calendar year. The Board reviewed BlackRock’s profitability methodology for the iShares funds, noting that the 15(c) Committee had focused on the methodology and profitability presentation during its meetings. The Board discussed the sources of direct and ancillary revenue with management, including the revenues to BTC from securities lending by the Fund. The Board also discussed BFA’s profit margin as reflected in the Fund’s profitability analysis and reviewed information regarding potential economies of scale (as discussed below). Based on this review, the Board concluded that the profits realized by BFA and its affiliates under the Advisory Contract and from other relationships between the Fund and BFA and/or its affiliates, if any, were within a reasonable range in light of the factors considered.

Economies of Scale — The Board reviewed information regarding potential economies of scale or other efficiencies that may result from increases in the Fund’s assets, noting that the issue of economies of scale had been focused on extensively by the 15(c) Committee during its meetings and addressed by management. The Board and the 15(c) Committee reviewed information provided by BFA regarding scale benefits shared with the iShares funds through relatively low fee rates established at inception, breakpoints, waivers, or other fee reductions, as well as through additional investment in the iShares business and the provision

28 2016 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

of improved or additional infrastructure and services to the iShares funds and their shareholders. The Board and the 15(c) Committee received information regarding BlackRock’s historical profitability, including BFA’s and its affiliates’ costs in providing services. The cost information distinguished, among other things, between fixed and variable costs, and explained how the level of fixed and variable costs, as well as the nature of such costs, may impact the existence or size of scale benefits. The Board noted that the Advisory Contract for the Fund did not provide for any breakpoints in the Fund’s investment advisory fee rate as the assets of the Fund increase. However, the Board noted that should material economies of scale exist in the future that are not otherwise shared, a breakpoint structure for the Fund may be appropriate, and that it would continue to monitor the sharing of economies of scale to determine the appropriateness of adding breakpoints in the future.

Based on this review, as well as the other factors considered at the meeting, the Board, recognizing its responsibility to consider this issue periodically, determined to approve the continuance of the Advisory Contract for the coming year.

Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates — The Board received and considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, including open-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds, and institutional separate accounts (together, the “Other Accounts”), and acknowledged BFA’s assertion that the iShares funds are fundamentally different investment vehicles from the Other Accounts. The Board noted that BFA and its affiliates do not manage Other Accounts with substantially the same investment objective and strategy as the Fund and that track the same index as the Fund. The Board further noted that BFA provided the Board with detailed information regarding how the Other Accounts (particularly institutional clients) generally differ from the Fund, including in terms of the different and generally more extensive services provided to the Fund, as well as other significant differences. In that regard, the Board considered that the pricing of services to institutional clients is typically based on a number of factors beyond the nature and extent of the specific services to be provided and often depends on the overall relationship between the client and its affiliates and the adviser and its affiliates. In addition, the Board considered the relative complexity and inherent risks and challenges of managing and providing other services to the Fund, as a publicly traded exchange traded fund, as compared to the Other Accounts that are institutional clients in light of differing regulatory requirements and client-imposed mandates. The Board also considered the “all-inclusive” nature of the Fund’s advisory fee structure, and the Fund expenses borne by BFA under this arrangement. The Board noted that the investment advisory fee rate under the Advisory Contract for the Fund was generally higher than the investment advisory/management fee rates for certain of the Other Accounts (particularly institutional clients) and concluded that the differences appeared to be consistent with the factors discussed.

Other Benefits to BFA and/or its Affiliates — The Board reviewed the “fallout” benefits or ancillary revenue received by BFA and/or its affiliates in connection with the services provided to the Fund by BFA, such as payment of revenue to BTC, the Fund’s securities lending agent, for loaning portfolio securities (which was included in the profit margins reviewed by the Board pursuant to BFA’s profitability methodology), and payment of advisory fees and/or administration fees to BFA and BTC (or their affiliates) in connection with any investments by the Fund in other funds for which BFA (or its affiliates) provides investment advisory services and/or administration services. The Board noted that BFA generally does not use soft dollars or consider the value of research or other services that may be provided to BFA (including its affiliates) in selecting brokers for portfolio transactions for the Fund. The Board further noted that any portfolio transactions on behalf of the Fund placed through a BFA affiliate or purchased from an underwriting syndicate in which a BFA affiliate participates, are reported to the Board pursuant to Rule 17e-1 or Rule 10f-3, as applicable, under the 1940 Act. The Board concluded that any such ancillary benefits would not be disadvantageous to the Fund’s shareholders and thus would not alter the Board’s conclusion with respect to the appropriateness of approving the continuance of the Advisory Contract for the coming year.

Based on the considerations described above, the Board determined that the Fund’s investment advisory fee rate under the Advisory Contract does not constitute a fee that is so disproportionately large as to bear no reasonable relationship to the

BOARD REVIEWAND APPROVALOF INVESTMENT ADVISORY CONTRACT 29

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

services rendered and that could not have been the product of arm’s-length bargaining, and concluded that it is in the best interest of the Fund and its shareholders to approve the continuance of the Advisory Contract for the coming year.

II. iShares Emerging Markets Dividend ETF

Under Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”), the Company’s Board of Directors (the “Board”), including a majority of Directors who are not “interested persons” of the Company (as that term is defined in the 1940 Act) (the “Independent Directors”), is required annually to consider and approve the Investment Advisory Contract between the Company and BFA (the “Advisory Contract”) on behalf of the Fund. The Independent Directors requested, and BFA provided, such information as the Independent Directors, with advice from independent counsel, deemed reasonably necessary to evaluate the Advisory Contract. A committee of all of the Independent Directors (the “15(c) Committee”), with independent counsel, met with management on April 28, 2016 and May 9, 2016. At these meetings, the 15(c) Committee reviewed and discussed information provided in response to the 15(c) Committee’s initial requests, and requested certain additional information, which management agreed to provide. At a meeting held on May 17, 2016, management presented information to the Board relating to the continuance of the Advisory Contract, including information requested by the 15(c) Committee during its meetings. The Board, including the Independent Directors, reviewed and discussed such information at length. The Independent Directors requested from management certain additional information, which management agreed to provide. At a meeting held on June 21-23, 2016, the Board, including the Independent Directors, reviewed the additional information provided by management in response to these requests. After extensive discussions, the Board, including all of the Independent Directors, approved the continuance of the Advisory Contract for the Fund, based on a review of qualitative and quantitative information provided by BFA, including the additional information management provided at the request of the Independent Directors. The Board noted its satisfaction with the extent and quality of information provided and its frequent interactions with management, as well as the detailed responses and other information provided by BFA. The Board also noted that the Board and BFA agreed to discuss potential enhancements and adjustments to the 15(c) process for the coming year. The Independent Directors were advised by their independent counsel throughout the process, including about the legal standards applicable to their review. In approving the Advisory Contract for the Fund, the Board, including the Independent Directors, considered the following factors, no one of which was controlling, and reached the following conclusions:

Expenses and Performance of the Fund — The Board reviewed statistical information prepared by Broadridge Financial Solutions Inc. (“Broadridge”), an independent provider of investment company data, regarding the expense ratio components, including gross and net total expenses, waivers/reimbursements (if any), and underlying fund fees and expenses (if any) of the Fund in comparison with the same information for other exchange traded funds (including, where applicable, funds sponsored by an “at cost” service provider) and, in the limited instances where no comparable ETFs existed and the comparison group would not otherwise be reasonable in Broadridge’s judgment, pure index institutional mutual funds, objectively selected by Broadridge as comprising the Fund’s applicable peer group pursuant to Broadridge’s proprietary ETF methodology (the “Peer Group”). The Board was provided with a detailed description of Broadridge’s proprietary ETF methodology used by Broadridge to determine the Fund’s Peer Group. The Board further noted that due to the limitations in providing comparable funds in the Peer Group, the statistical information provided in Broadridge’s report may or may not provide meaningful direct comparisons to the Fund in all instances.

The Board also noted that the investment advisory fee rate and overall expenses (net of waivers and reimbursements) for the Fund were lower than the median of the investment advisory fee rates and overall expenses (net of waivers and reimbursements) of the funds in its Peer Group, excluding iShares funds.

In addition, to the extent that any of the comparison funds included in the Peer Group, excluding iShares funds, track the same index as the Fund, Broadridge also provided, and the Board reviewed, a comparison of the Fund’s performance for the one-,

30 2016 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

three-, five-, ten-year, and since inception periods, as applicable, and for the “last quarter” period ended December 31, 2015, to that of such relevant comparison funds for the same periods.

The Board noted that the Fund seeks to track its own underlying index and that, during the year, the Board received periodic reports on the Fund’s short- and longer-term performance in comparison with its underlying index. Such periodic comparative performance information, including additional detailed information on certain specific iShares funds requested by the Board, was also considered. The Board noted that the Fund generally performed in line with its underlying index over the relevant periods.

Based on this review, the other factors considered at the meeting, and their general knowledge of ETF pricing, the Board concluded that the investment advisory fee rate and expense level and the historical performance of the Fund supported the Board’s approval of the continuance of the Advisory Contract for the coming year.

Nature, Extent and Quality of Services Provided by BFA — Based on management’s representations, including information about recent and proposed enhancements to the iShares business, including with respect to capital markets support and analysis, product design and other services, the Board expected that there would be no diminution in the scope of services required of or provided by BFA under the Advisory Contract for the coming year as compared to the scope of services provided by BFA during prior years. In reviewing the scope of these services, the Board considered BFA’s investment philosophy and experience, noting that BFA and its affiliates have committed significant resources over time, including during the past year, to supporting the iShares funds and their shareholders. The Board also considered BFA’s compliance program and its compliance record with respect to the Fund. In that regard, the Board noted that BFA reports to the Board about portfolio management and compliance matters on a periodic basis in connection with regularly scheduled meetings of the Board, and on other occasions as necessary and appropriate, and has provided information and made appropriate officers available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Fund, as well as the resources available to them in managing the Fund. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies provided at the June 21-23, 2016 meeting and throughout the previous year, and matters related to BFA’s portfolio compliance policies and procedures. The Board noted that the Fund had met its investment objective consistently since its inception date.

Based on review of this information, and the performance information discussed above, the Board concluded that the nature, extent and quality of services provided by BFA to the Fund under the Advisory Contract supported the Board’s approval of the continuance of the Advisory Contract for the coming year.

Costs of Services Provided to the Fund and Profits Realized by BFA and its Affiliates — The Board reviewed information about the profitability to BlackRock of the Fund, based on the fees payable to BFA and its affiliates (including fees under the Advisory Contract), and all other sources of revenue and expense to BFA and its affiliates from the Funds’ operations for the last calendar year. The Board reviewed BlackRock’s profitability methodology for the iShares funds, noting that the 15(c) Committee had focused on the methodology and profitability presentation during its meetings. The Board discussed the sources of direct and ancillary revenue with management, including the revenues to BTC from securities lending by the Fund. The Board also discussed BFA’s profit margin as reflected in the Fund’s profitability analysis and reviewed information regarding potential economies of scale (as discussed below). Based on this review, the Board concluded that the profits realized by BFA and its affiliates under the Advisory Contract and from other relationships between the Fund and BFA and/or its affiliates, if any, were within a reasonable range in light of the factors considered.

Economies of Scale — The Board reviewed information regarding potential economies of scale or other efficiencies that may result from increases in the Fund’s assets, noting that the issue of economies of scale had been focused on extensively by the

BOARD REVIEWAND APPROVALOF INVESTMENT ADVISORY CONTRACT 31

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

15(c) Committee during its meetings and addressed by management. The Board and the 15(c) Committee reviewed information provided by BFA regarding scale benefits shared with the iShares funds through relatively low fee rates established at inception, breakpoints, waivers, or other fee reductions, as well as through additional investment in the iShares business and the provision of improved or additional infrastructure and services to the iShares funds and their shareholders. The Board and the 15(c) Committee received information regarding BlackRock’s historical profitability, including BFA’s and its affiliates’ costs in providing services. The cost information distinguished, among other things, between fixed and variable costs, and explained how the level of fixed and variable costs, as well as the nature of such costs, may impact the existence or size of scale benefits. The Board noted that the Advisory Contract for the Fund did not provide for any breakpoints in the Fund’s investment advisory fee rate as the assets of the Fund increase. However, the Board noted that, at a meeting held on June 21-23, 2016, the Board approved a permanent reduction to the advisory fee rate charged to the Fund. In addition, the Board noted that should additional material economies of scale exist in the future that are not otherwise shared, a breakpoint structure for the Fund may be appropriate, and that it would continue to monitor the sharing of economies of scale to determine the appropriateness of adding breakpoints in the future.

Based on this review, as well as the other factors considered at the meeting, the Board, recognizing its responsibility to consider this issue periodically, determined to approve the continuance of the Advisory Contract for the coming year.

Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates — The Board received and considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, including open-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds, and institutional separate accounts (together, the “Other Accounts”), and acknowledged BFA’s assertion that the iShares funds are fundamentally different investment vehicles from the Other Accounts. The Board noted that BFA and its affiliates do not manage Other Accounts with substantially the same investment objective and strategy as the Fund and that track the same index as the Fund. The Board further noted that BFA provided the Board with detailed information regarding how the Other Accounts (particularly institutional clients) generally differ from the Fund, including in terms of the different and generally more extensive services provided to the Fund, as well as other significant differences. In that regard, the Board considered that the pricing of services to institutional clients is typically based on a number of factors beyond the nature and extent of the specific services to be provided and often depends on the overall relationship between the client and its affiliates and the adviser and its affiliates. In addition, the Board considered the relative complexity and inherent risks and challenges of managing and providing other services to the Fund, as a publicly traded exchange traded fund, as compared to the Other Accounts that are institutional clients in light of differing regulatory requirements and client-imposed mandates. The Board also considered the “all-inclusive” nature of the Fund’s advisory fee structure, and the Fund expenses borne by BFA under this arrangement. The Board noted that the investment advisory fee rate under the Advisory Contract for the Fund was generally higher than the investment advisory/management fee rates for certain of the Other Accounts (particularly institutional clients) and concluded that the differences appeared to be consistent with the factors discussed.

Other Benefits to BFA and/or its Affiliates — The Board reviewed the “fallout” benefits or ancillary revenue received by BFA and/or its affiliates in connection with the services provided to the Fund by BFA, such as payment of revenue to BTC, the Fund’s securities lending agent, for loaning portfolio securities (which was included in the profit margins reviewed by the Board pursuant to BFA’s profitability methodology), and payment of advisory fees and/or administration fees to BFA and BTC (or their affiliates) in connection with any investments by the Fund in other funds for which BFA (or its affiliates) provides investment advisory services and/or administration services. The Board noted that BFA generally does not use soft dollars or consider the value of research or other services that may be provided to BFA (including its affiliates) in selecting brokers for portfolio transactions for the Fund. The Board further noted that any portfolio transactions on behalf of the Fund placed through a BFA affiliate or purchased from an underwriting syndicate in which a BFA affiliate participates, are reported to the Board pursuant to Rule 17e-1 or Rule 10f-3, as applicable, under the 1940 Act. The Board concluded that any such ancillary benefits would not be disadvantageous to the Fund’s

32 2016 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

shareholders and thus would not alter the Board’s conclusion with respect to the appropriateness of approving the continuance of the Advisory Contract for the coming year.

Based on the considerations described above, the Board determined that the Fund’s investment advisory fee rate under the Advisory Contract does not constitute a fee that is so disproportionately large as to bear no reasonable relationship to the services rendered and that could not have been the product of arm’s-length bargaining, and concluded that it is in the best interest of the Fund and its shareholders to approve the continuance of the Advisory Contract for the coming year.

BOARD REVIEWAND APPROVALOF INVESTMENT ADVISORY CONTRACT 33

Supplemental Information (Unaudited)

iSHARES^®, INC.

Section 19(a) Notices

The amounts and sources of distributions reported are estimates and are provided pursuant to regulatory requirements and are not being provided for tax reporting purposes. The actual amounts and sources for tax reporting purposes will depend upon each Fund’s investment experience during the year and may be subject to changes based on the tax regulations. Shareholders will receive a Form 1099-DIV each calendar year that will inform them how to report these distributions for federal income tax purposes.

	Total Cumulative Distributions for the Fiscal Year-to-Date								% Breakdown of the Total Cumulative Distributions for the Fiscal Year-to-Date
iShares ETF	Net Investment Income		Net Realized Capital Gains		Return of Capital		Total Per Share		Net Investment Income			Net Realized Capital Gains			Return of Capital			Total Per Share
Asia/Pacific Dividend	$	1.076244	$	—	$	0.051389	$	1.127633		95	%		—	%		5	%		100	%
Emerging Markets Dividend		1.206542		—		0.151328		1.357870		89			—			11			100

34 2016 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS

For more information visit www.iShares.com or call 1-800-474-2737

This report is intended for the Funds’ shareholders. It may not be distributed to prospective investors unless it is preceded or accompanied by the current prospectus.

Investing involves risk, including possible loss of principal.

The iShares Funds are distributed by BlackRock Investments, LLC (together with its affiliates, “BlackRock”).

The iShares Funds are not sponsored, endorsed, issued, sold or promoted by S&P Dow Jones Indices, LLC, nor does this company make any representation regarding the advisability of investing in the iShares Funds. BlackRock is not affiliated with the company listed above.

A description of the policies that the Funds use to determine how to vote proxies relating to portfolio securities and information about how the Funds voted proxies relating to portfolio securities during the most recent twelve-month period ending June 30 is available without charge, upon request, by calling toll-free 1-800-474-2737; on the Funds’ website at www.iShares.com; and on the U.S. Securities and Exchange Commission (SEC) website at www.sec.gov.

The Funds file their complete schedules of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Forms N-Q are available on the SEC’s website or may be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. The Funds also disclose their complete schedules of portfolio holdings on a daily basis on the Funds’ website.

©2016 BlackRock, Inc. All rights reserved. iSHARES and BLACKROCK are registered trademarks of BlackRock, Inc. or its subsidiaries. All other marks are the property of their respective owners.

iS-SAR-407-1016

Item 2. Code of Ethics.

Not applicable to this semi-annual filing.

Item 3. Audit Committee Financial Expert.

Not applicable to this semi-annual filing.

Item 4. Principal Accountant Fees and Services.

Not applicable to this semi-annual filing.

Item 5. Audit Committee of Listed Registrants.

Not applicable to this semi-annual filing.

Item 6. Investments.

(a) Schedules of investments are included as part of the reports to shareholders filed under Item 1 of this Form.

(b) Not applicable.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable to the Registrant.

Item 8. Portfolio Managers of Closed-End Management Investment Companies.

Not applicable to the Registrant.

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

Not applicable to the Registrant.

Item 10. Submission of Matters to a Vote of Security Holders.

There were no material changes to the procedures by which shareholders may recommend nominees to the Registrant’s Board of Directors.

Item 11. Controls and Procedures.

(a) The President (the Registrant’s Principal Executive Officer) and Chief Financial Officer (the Registrant’s Principal Financial Officer) have concluded that, based on their evaluation as of a date within 90 days of the filing date of this report, the disclosure controls and procedures of the Registrant (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) are reasonably designed to achieve the purposes described in Section 4(a) of the attached certification.

(b) There were no changes in the Registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the Registrant’s internal control over financial reporting.

Item 12. Exhibits.

(a) (1) Not applicable to this semi-annual filing.

(a) (2) Section 302 Certifications are attached.

(a) (3) Not applicable to the Registrant.

(b) Section 906 Certifications are attached.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

iShares, Inc.

By: /s/ Martin Small

Martin Small, President (Principal Executive Officer)

Date: December 29, 2016

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

By: /s/ Martin Small

Martin Small, President (Principal Executive Officer)

Date: December 29, 2016

By: /s/ Jack Gee

Jack Gee, Treasurer and Chief Financial Officer (Principal Financial Officer)

Date: December 29, 2016