Tadawul Saudi Arabia announced the decision of FTSE Russell Group, the global provider of indices, to include Saudi Arabia in its government bond index in emerging markets, starting from April 2022.
42 government instruments, constituting 2.75% of the index, are expected to join the emerging markets on a market capitalization weighted basis.
Tadawul indicated that Saudi Arabia's inclusion in this index is the first for fixed income instruments denominated in Saudi riyals in a global index, and it also represents a milestone in the endeavors to develop the Saudi financial market.
The FTSE Emerging Market Government Bond Index measures the performance of local currency-denominated government bonds for more than 16 countries, providing a broad benchmark; This helps enable global portfolio managers to compare the performance of investments in sovereign debt markets.
Mohammed Al-Rumaih, CEO of Tadawul Saudi Arabia, said: “The Saudi stock market continues to grow at a rapid pace, and the importance of the improvements made by Tadawul Saudi Arabia shows in the Kingdom’s joining the FTSE index of government bonds in emerging markets, as it is a significant achievement that will contribute to raising the level of the Saudi financial market globally. ".
The Saudi debt instruments market has witnessed a noticeable increase in the number of local and international investors since the start of the listing and trading of Saudi government debt instruments in April 2018.
The nominal value traded for the listed Saudi government debt instruments amounted to more than 3.3 billion Saudi riyals last August, and the market currently includes more than 70 listed government debt instruments, while the total issues amounted to more than 452 billion Saudi riyals.
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