Saudi govt debt instruments join GBI-EM

Saudi government debt instruments are now included in JP Morgan Emerging Markets Government Bond Index (GBI-EM) and Bloomberg Emerging Market Local Currency Government Index.

The inclusion will begin gradually starting January 29, 2027.
 

The Capital Market Authority (CMA) said the addition is expected to take place in equal phases, with Saudi Arabia’s final weight in the GBI-EM Global Diversified Index reaching around 2.52%.
 

It added that the inclusion reflects the Kingdom’s position as a leading issuer in emerging markets, enhancing the visibility and global standing of the Saudi capital market, while improving its attractiveness, efficiency, and competitiveness both regionally and internationally.
 

The move is part of broader efforts to position the Saudi capital market among the world’s top ten, driven by joint collaboration between the National Debt Management Center, the regulator, and Saudi Tadawul Group. It also reflects the outcome of initiatives led by the debt market development committee, including improving international access by allowing direct foreign investment in debt instruments, linking with international depositories, launching OTC settlement services, expanding the primary dealer network, introducing SAR-denominated benchmark sukuk, and enhancing trading infrastructure through a fixed income market-making framework to boost liquidity and broaden the investor base.
 

JPMorgan had previously included Saudi USD-denominated issuances in its emerging market bond indices in 2019, with a weight of 3.1%, helping expand the investor base and improve liquidity for both sovereign and government-owned corporate issuances.
 

Saudi riyal-denominated issuances were also included in the FTSE Russell emerging market government bond index in September 2021, and in the iBoxx government bond index in January 2022.
 

The JPMorgan GBI-EM index is among the largest debt market benchmarks globally, with assets under management exceeding $250 billion (around SAR 937.5 billion).