Saudi sukuk inclusion in EM bond indices to boost liquidity: Al-Jadaan

Mohammed Al-Jadaan, Minister of Finance

Finance Minister Mohammed Al-Jadaan welcomed JPMorgan’s announcement to include Saudi riyal-denominated government sukuk in its Emerging Markets Government Bond Index (GBI-EM), as well as Bloomberg's decision to include the Saudi government sukuk in its Emerging Market Local Currency Government Index.

He said the inclusion will support the expansion and diversification of the investor base, enhance long-term capital inflows, and improve the efficiency of the domestic debt market.

The move reflects confidence in the strength of the Saudi economy and builds on the efforts of the Financial Sector Development Program under Saudi Vision 2030 to deepen financial markets, enhance financing instruments, and promote transparency and liquidity, the minister noted.

He added that the inclusion will also boost the performance of Saudi debt instruments in global investment portfolios, boost liquidity in the secondary market, and enhance the competitiveness of the local debt market.

The step will further cement the position of Saudi Arabia’s financial market as one of the leading markets in the region, Al-Jadaan said.