Saudi’s role as one of the leading sovereign issuers in emerging markets has been enhanced with the announcement of Saudi Arabia's issues inclusion in the JPMorgan Emerging Markets Index.
Saudi’s issues will account for 3.1% of the weight of the indices, according to JPMorgan's announcement, which will add support to the investor base as well as improve liquidity levels for the government's issues as well the issuances of government-owned companies.
This development is in line with the strategic initiatives of the Ministry of Finance's Debt Management Office (DMO) to ensure Saudi's sustained access to global debt markets. Since the first launch of international bonds in 2016, the DMO’s approach to international issues has evolved to facilitate access to global debt markets. Continued communication with investors globally has also contributed an increase in strategic initiatives such as index inclusion. The Office expects estimated inflows of approximately $ 11 billion as a result of this listing, which will be phased in monthly over a 9-month period of.
As a result, His Excellency the Minister of Finance, Mr. Mohammed Al-Jadaan, underlined that this listing represents a major step forward in Saudi’s position in the global debt markets and reflects confidence in the Saudi economy and its financial position within the framework of the Financial Sector Development Program. Which is one of the Saudi Vision 2030, programs developing an advanced financial market to increase liquidity and facilitate access to significant capital in the global market. This demonstrates that the Saudi Government under the guidance of the Custodian of the Two Holy Mosques, King Salman bin AbdulAziz and HRH the Crown Prince Mohammed bin Salman, is making great progress towards its objective of being one of the most important and sophisticated issuers of sovereign debt globally.