His Excellency the Minister of Finance, Chairman of the Financial Sector Development Program, and Chairman of the Board of the National Debt Management Center, Mr. Mohammed Aljadaan, welcomed the announcement by J.P. Morgan regarding the inclusion of Saudi Riyal-denominated government sukuk in the Government Bond Index-Emerging Markets (GBI-EM), starting from January 29, 2027, on a phased-in basis with an expected weight of 2.52% of the index. This coincides with the announcement by Bloomberg Index Services Limited (BISL) regarding the inclusion of Saudi Riyal-denominated government sukuk in the Bloomberg Emerging Market Local Currency Government Index, with implementation expected to take effect at the April-end 2027 index rebalancing.
Aljadaan affirmed that these inclusions are a result of the support the financial sector enjoys from the Government of the Kingdom under the directives of the Custodian of the Two Holy Mosques, King Salman bin Abdulaziz Al Saud, and the close follow-up of His Royal Highness Prince Mohammed bin Salman bin Abdulaziz Al Saud, Crown Prince and Prime Minister — may Allah protect them — and stands as evidence of confidence in the resilience of the Saudi economy. They also reflect the continuous efforts led by the Kingdom within the targets of the Financial Sector Development Program — one of the programs of Saudi Vision 2030 — to deepen the capital market, broaden the investor base, and enhance the efficiency of government financing instruments. They also represent an extension of a comprehensive reform path that has contributed to enhancing the efficiency of capital markets, raising levels of transparency, developing the regulatory infrastructure, and boosting liquidity, thereby strengthening the Kingdom’s attractiveness as a trusted investment destination at the international level.
His Excellency the Minister of Finance noted that the inclusion of Saudi Riyal-denominated sukuk in international indices will contribute to increasing the presence of Saudi debt instruments within global investment portfolios, enhancing liquidity in the secondary market, and raising the international competitiveness of the local debt market. The inclusion also reinforces the role of the Saudi capital market as one of the leading markets in the region.
According to J.P. Morgan’s announcement, the inclusion is expected to cover eight issuances of Riyal-denominated government sukuk, with a total nominal value of approximately USD 69 billion. Meanwhile, Bloomberg Index Services clarified that the securities eligible for inclusion in its index are Saudi Riyal-denominated fixed-rate government sukuk denominated in Saudi Riyals, with a remaining minimum maturity of at least one year and a minimum amount outstanding of SAR 1 billion. The new version of the index including the Kingdom of Saudi Arabia is expected to be published in the third quarter of 2026.
This dual inclusion follows a series of developmental initiatives in the local debt market, including the expansion of the Primary Dealers Program in the local market to include a number of international banks, the enhancement of settlement mechanisms to facilitate trading for international investors, and the introduction of an Over-the-Counter (OTC) settlement framework in mid-2025, as well as the strengthening of connectivity with international central securities depositories such as Euroclear — improvements that Bloomberg and J.P. Morgan cited in as key factors supporting the inclusion decisions.
المصدر – صحيفة مكة