The Ministry of Finance and The National Debt Management Center welcome the announcement made by FTSE Russell, the global provider of indices, yesterday Thursday, September 30th, 2021, regardingthe inclusion of local currency Saudi Arabian government Sukuk in FTSE Emerging Markets Government Bond Index (EMGBI), scheduled to start in April 2022.
In this announcement, FTSE Russell expects 42 Sukuk with around USD 81.6 billion in par amount outstanding to be included in the EMGBI which would comprise 2.75% of the index on a market value-weighted basis. To ensure comprehensive index coverage for global government bond markets, FTSE Russell will continue to track both Saudi Sukuk and bonds as part of its standalone FTSE Saudi Arabian Government Bond Index.
This announcement comes as an achievement for Saudi Arabia and clear evidence of the efforts made by the Government of the Kingdom of Saudi Arabia to develop, deepen, and enhance the efficiency of the local debt market, the diversification of its investor base, and the alignment with best global market practices and standards. This is in line with the strategy of the Financial Sector Development Program to achieve the goals of "Saudi Vision 2030" which will contribute to increasing the attractiveness of the market and enhancing its competitiveness regionally and internationally.
It is noteworthy that this inclusion for The Saudi Government Sukuk will have a significant impact on the local debt market by increasing the market liquidity as a result from the new international investors who use this index to track and evaluate their assets.