The Saudi Exchange welcomes the addition of Saudi Arabia to J.P. Morgan’s GBI-EM index watchlist, marking a recognition of its efforts in deepening market liquidity and expanding global investor participation.

The J.P. Morgan Government Bond Index – Emerging Markets (GBI-EM) suite is a leading benchmark tracking local currency-denominated bonds and sukuk issued by emerging market governments. Upon inclusion in the index, Saudi Arabia is projected to attract approximately SAR 18.75 billion (USD 5 billion) in initial foreign inflows, reinforcing the depth, liquidity, and attractiveness of the Saudi sukuk and debt capital market.

Mr. Mohammed Al Rumaih, CEO of the Saudi Exchange, commented: “Saudi Arabia’s addition to J.P. Morgan’s emerging market debt index watchlist is a landmark achievement for the Saudi Sukuk and Debt Capital Market, and will eventually pave the way for greater liquidity and increased investor participation. The Saudi Exchange has consistently demonstrated dedication and commitment in developing sophisticated Saudi debt capital market, and together with our partners, we are fostering a dynamic, globally competitive capital market aligned with international best practices.”

The Saudi debt market has undergone significant transformation in recent years, improving its efficiency, transparency, and global alignment. In collaboration with the Capital Market Authority (CMA) and the National Debt Management Center (NDMC), the Saudi Exchange is advancing market infrastructure and operational frameworks to streamline the issuance process, making it more attractive for issuers through the introduction of key regulatory and infrastructure enhancements.

Notable milestones include the launch of Over-the-Counter (OTC) settlements for listed debt instruments, Fixed Income Market Making Framework and the implementation of Phase 2 of the Post-Trade Transformation Program (PTTP), which streamlined post-trade processes, strengthened risk management, and expanded access for a broader range of market participants.

The total value of sukuk and debt traded on the Saudi Exchange reached SAR 688 billion (USD 183 billion). The Saudi sukuk and debt capital market also recorded a 25% year-on-year increase in foreign investment in Q2 2025. Moreover, since the launch of OTCs in May 2025, the market saw nearly SAR 2.9 billion (USD 765 million) in settlements, 88% of which involved foreign counterparties.

Saudi Arabia’s inclusion on the GBI-EM watchlist reflects growing global confidence in the Saudi sukuk and debt capital market and is a strong endorsement of the Exchange’s efforts to position the Kingdom as a leading regional and global hub for fixed income instruments, in alignment with the FSDP under Vision 2030.

Source: The Saudi Exchange