Saudi Arabia Placed on J.P. Morgan's Emerging Markets Bond Index Observation List
The Saudi Exchange has made a significant leap forward in the global debt market, as it was recently added to J.P. Morgan's Global Bond Index Emerging Markets (GBI-EM) watchlist. This inclusion reinforces the depth, liquidity, and attractiveness of the Saudi stock market today and debt capital market.
The GBI-EM suite is a leading benchmark for local currency-denominated bonds and sukuk issued by emerging market governments. Being on the watchlist is a strong endorsement of the Exchange's efforts to position the Kingdom as a leading regional and global hub for fixed income instruments.
Saudi Arabia's inclusion in the GBI-EM index, expected in the second half of 2025, is projected to attract approximately SAR 18.75 billion (USD 5 billion) in initial foreign inflows. This move comes after the country was initially incorporated in the JPMorgan EMBI Global Diversified index.
The Saudi stock market today and debt capital market has demonstrated a significant increase in foreign investment. In Q2 2025 alone, the market recorded a 25% year-on-year increase in foreign investment. Since the launch of Over-the-Counter (OTC) settlements in May 2025, the market saw nearly SAR 2.9 billion (USD 765 million) in settlements, with 88% of OTC settlements involving foreign counterparties.
The Saudi Exchange has been consistently dedicated to developing a sophisticated Saudi debt capital market. Notable milestones include the launch of OTC settlements for listed debt instruments and the implementation of Phase 2 of the Post-Trade Transformation Program (PTTP), aimed at streamlining post-trade processes, strengthening risk management, and expanding access for a broader range of market participants.
The Saudi Exchange's efforts are in alignment with the FSDP under Vision 2030. In collaboration with the Capital Market Authority (CMA) and the National Debt Management Center (NDMC), the Exchange is advancing market infrastructure and operational frameworks to further support the growth of the Saudi debt market.
Mr. Mohammed Al Rumaih, CEO of the Saudi Exchange, commented on the inclusion as a 'landmark achievement' for the Saudi Sukuk and Debt Capital Market. The Saudi debt market has undergone significant transformation in recent years, improving its efficiency, transparency, and global alignment.
The inclusion on the GBI-EM watchlist reflects growing global confidence in the Saudi stock market today and debt capital market. With these strides, the Saudi Exchange is poised to continue its journey towards becoming a leading player in the global debt market.
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