Business · Markets · 7 hrs ago
Saudi Arabia to join JPMorgan local-currency emerging debt index
JPMorgan will add Saudi Arabia to its local-currency emerging markets debt index over 10 months starting January 29, 2027.
The change will bring eight Saudi sovereign sukuk, valued at $79 billion, into the index; these are debt securities denominated in riyals.
Saudi Arabia’s share is expected to reach 2.71% once the addition is complete, slightly above the level first announced.
The inclusion was first announced in April and is part of a wider index update.
JPMorgan will lower the maximum share for any one country in its diversified index from 10% to 9%, reducing the allocations of China, India, Mexico, Malaysia and Indonesia to the new limit.
The Saudi securities will be added gradually during the 10-month period.
JPMorgan will add Saudi Arabia to its local-currency emerging-market debt index over 10 months starting January 29, 2027.
The index will include Saudi riyal-denominated sovereign sukuk.
Saudi Arabia’s index weight is expected to reach 2.71% once the inclusion is complete.
The change will add eight Saudi sukuk with a total value of $79 billion.
As part of a broader adjustment, JPMorgan will lower the index’s country cap from 10% to 9%.
- Who
- JPMorgan.
- What
- It will add Saudi Arabia to its local-currency emerging-market debt index.
- When
- The 10-month inclusion period starts January 29, 2027.
- Where
- In JPMorgan’s local-currency emerging-market debt index.
- Why
- Not stated.
This story does not have two clearly opposing sides.
The plan to include Saudi Arabia was first announced.
JPMorgan announced the inclusion and said it would be phased in over 10 months.
The inclusion period is scheduled to begin.
- Inclusion period
- 10 months starting January 29, 2027
- Saudi Arabia’s expected index weight
- 2.71%
- Saudi sukuk added
- 8 instruments
- Total value of Saudi sukuk
- $79 billion
- Country cap
- Reduced from 10% to 9%