The Saudi Exchange has announced that FTSE Russell, a leading global index provider of benchmarks, analytics, and data solutions, has included Saudi Arabia in FTSE Emerging Markets Government Bond Index (EMGBI) effective April 2022.
It is projected to include 42 government sukuk which comprise 2.75% of the index on a market value weighted basis.
The inclusion of Saudi Arabia in the FTSE EMGBI marks the first time Saudi Riyal denominated Fixed Income Instruments are included in a global index and is a significant milestone in the development of the broader Saudi capital market.
The FTSE EMGBI measures the performance of local currency Government bonds from over 16 countries, providing a broad benchmark for global portfolio managers to enable performance comparisons across sovereign debt markets.
Mohammed Al Rumaih, CEO of Saudi Exchange, said: “The Saudi capital market continues to grow at pace and the inclusion of Saudi Arabia in the FTSE Emerging Markets Government Bond Index highlights the importance of the enhancements made by the Saudi Exchange, which is a landmark achievement that will pave the way for its recognition globally.”
Demand from local and international investors has been robust since the Saudi Exchange began the listing and trading of debt instruments issued by the Government of the Kingdom of Saudi Arabia in April 2018. In August 2021, a nominal value of more than SAR 3.3 billion of Saudi Government debt was traded and over 70 Government debt instruments are currently listed on the exchange, while the total size of issuance for Sukuk/bonds is more than SR452 billion. - TradeArabia News Service