Saudi Arabia’s sukuk to join the widely followed FTSE bond index

NEW YORK, Sept. 30 (Reuters) – FTSE Russell on Thursday announced that the Saudi Arabia sukuk will be added to its widely tracked Emerging Markets Government Bond Index (EMGBI) in local currency, starting next April.

“Inclusion in the Saudi sukuk index is expected to begin in April 2022 and is expected to represent 2.75% of the index on a market-weighted basis,” FTSE Russell said in a press release.

Sukuk, Islamic Sharia-compliant bonds, have a nominal amount currently outstanding of 306.1 billion riyals ($ 81.6 billion).

India will remain on a watch list for an upgrade in its affordability score and possible inclusion in a bond index.

FTSE added that Kazakhstan’s local currency government bonds will be included in its border emerging market government bond index also from next April.

On the stock index side, Russia and Vietnam have both been kept on watch lists for possible classification upgrades. Russia could be upgraded to Advanced emerging from Emerging Secondary, and Vietnam to Secondary emerging from the frontier market. Iceland and Mongolia have been added to the watchlist for possible promotions.

“With respect to countries on the equity and fixed income watch lists, we continue to engage with relevant authorities in India, Vietnam and Russia, and will provide an update to the market in March. 2022, ”said David Sol, Managing Director of Index Policy, FTSE Russell.

Reporting by Rodrigo Campos; Editing by Sandra Maler

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