JPMorgan adds Saudi Arabia to benchmark EM bond index

US bank JPMorgan confirmed it will add Saudi Arabia to its benchmark emerging bond index on January 29, 2027 in a note circulated on Wednesday.

The New York lender will add Saudi bonds to its Government Bond Index-Emerging Markets (GBI-EM) with a 2.52 percent weighting.

“The inclusion follows a multi-year effort of sustained reforms by the local authorities to enhance market access for international investors and improve domestic trading capabilities,” the note said.

Saudi sukuk – shariah-compliant debt instruments that function like bonds – with a remaining maturity of up to 15 years will be eligible for inclusion on the index, JPMorgan said. 

The bank identified eight sukuk issuances that qualify for inclusion with a total value of $69 billion.

Inclusion on the GBI-EM, which claims to be the most widely tracked benchmark of its kind, tracked by $233 billion of investments, should boost liquidity and demand for Saudi sovereign debt, potentially bringing down the cost of borrowing. 

Saudi Arabia is increasingly looking to international debt markets to bridge a widening budget deficit and continue funding long-term economic development projects under Vision 2030.
AGBI in September reported that JPMorgan placed Saudi Arabia on “Index Watch-Positive”, putting it on track to join the GBI-EM.

Further reading:

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• Expected economic rebound sends Gulf bonds rallying
• Mena debt investors urged to look at Egypt’s short-term bonds