The Saudi Ministry of Finance announced on Apr. 23 that Saudi Riyal-denominated government sukuk will be included in the J.P. Morgan Government Bond Index-Emerging Markets (GBI-EM) starting Jan. 29, 2027, and in the Bloomberg Emerging Market Local Currency Government Index with implementation expected at the end of April 2027.
This development is significant as it marks a new milestone for Saudi Arabia’s financial sector, reflecting growing international confidence in the country’s economy and capital markets.
Mohammed Aljadaan, Minister of Finance and Chairman of both the Financial Sector Development Program and National Debt Management Center, welcomed these inclusions. “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,” Aljadaan said.
Aljadaan also said that including Saudi Riyal-denominated sukuk in international indices will increase their presence within global investment portfolios, enhance liquidity in secondary markets, raise competitiveness for local debt markets internationally, and reinforce Saudi Arabia’s role as a leading regional capital market.
J.P. Morgan stated that eight issuances totaling about USD 69 billion will be covered by its index inclusion. Bloomberg clarified that eligible securities are fixed-rate government sukuk denominated in riyals with at least one year remaining maturity and a minimum outstanding amount equivalent to SAR 1 billion; its updated index including Saudi Arabia is expected to be published during third quarter 2026.
The dual inclusion follows several reforms aimed at developing local debt markets such as expanding primary dealer programs to international banks, improving settlement mechanisms for global investors—including an Over-the-Counter settlement framework set for mid-2025—and strengthening links with central securities depositories like Euroclear.
