FTSE Emerging Market Government Bond Index to See Addition of Saudi Local Currency Sukuk

After its market accessibility level was upgraded, the FTSE Russell announced that Saudi Arabia’s local currency government Sukuk will be added to the FTSE Emerging Markets Government Bond Index (FTSE EMGBI). 42 government Sukuk at an outstanding par value of SAR 306.1 billion, will enter the FTSE EMGBI in April 2022, comprising 2.75% of the index on a market value-weighted basis.

Why it Matters?

The Saudi Capital Market Authority (CMA) said in a separate statement that this action will help to increase the number of investors in the financial market and improve liquidity levels. Moreover, the inclusion of Saudi Arabia in the FTSE EMGBI is deemed an important milestone in the growth of the broader Saudi capital market, as it is the first time tha...