RIYADH — J.P. Morgan and Bloomberg Index Services Limited have announced the inclusion of Saudi riyal-denominated government sukuk in two major emerging market bond indices.
Saudi Arabia’s Minister of Finance, Chairman of the Financial Sector Development Program, and Chairman of the Board of the National Debt Management Center Mohammed Aljadaan welcomed the move, saying the dual inclusion reflects growing international confidence in the resilience of the Saudi economy and the strength of its financial reforms.
According to J.P. Morgan, Saudi riyal-denominated government sukuk will be added to its Government Bond Index-Emerging Markets (GBI-EM) starting Jan. 29, 2027, on a phased basis, with an expected weight of 2.52%.
Bloomberg Index Services Limited also confirmed the inclusion of Saudi riyal-denominated government sukuk in the Bloomberg Emerging Market Local Currency Government Index, with implementation expected during the April-end 2027 index rebalancing.
Aljadaan said the achievement reflects the continued support provided to the financial sector under the leadership of Custodian of the Two Holy Mosques King Salman bin Abdulaziz Al Saud and close follow-up of Crown Prince and Prime Minister Prince Mohammed bin Salman bin Abdulaziz Al Saud.
He said the inclusions also highlight the Kingdom’s progress under the Financial Sector Development Program, one of the key pillars of Saudi Vision 2030, aimed at deepening capital markets, broadening the investor base, and improving the efficiency of government financing tools.
Aljadaan added that joining the international indices is expected to increase the presence of Saudi debt instruments in global investment portfolios, improve secondary market liquidity, and enhance the competitiveness of the domestic debt market.
J.P. Morgan said the inclusion is expected to cover eight issuances of Saudi riyal-denominated government sukuk with a total nominal value of around $69 billion.
Bloomberg said eligible securities for its index include Saudi fixed-rate government sukuk denominated in riyals, with at least one year remaining maturity and a minimum outstanding amount of SR1 billion. The updated version of the index including Saudi Arabia is expected to be published in the third quarter of 2026.
The dual inclusion follows several recent reforms in the local debt market, including the expansion of the Primary Dealers Program to international banks, improved settlement systems for foreign investors, the launch of an over-the-counter settlement framework in mid-2025, and stronger connectivity with international securities depositories such as Euroclear.
Source: Saudi Gazette