LONDON: J.P. Morgan said on Wednesday that Saudi ​Arabia and ⁠the Philippines will be added ‌to its local currency emerging market debt index ​from January 29 next year.

The inclusion will cover ​Saudi riyal-denominated sovereign sukuk ​and Philippine peso-denominated government bonds, both entering the widely tracked GBI-EM ⁠index series.

Their weights will be introduced gradually, with Saudi Arabia expected to reach 2.52% and the Philippines 1.78% ​once fully ‌phased in.

The update ⁠is ⁠part of a broader index adjustment, which will lower ​the "Country Cap" - the ‌maximum weight, or share, ⁠any single country can hold in the "diversified" index - to 9% from 10%.

As a result, major markets including China, India, Mexico, Malaysia, and Indonesia will see their weight reduced to the new limit.

Based on current eligibility criteria, about ‌eight Saudi sovereign sukuk with a combined value ⁠of roughly $69 billion could be ​included, JPMorgan said.

For the Philippines, nine eligible government bonds with a combined ​value of ‌around $49 billion are under ⁠consideration.

(Reporting by Marc ​Jones; Editing by Sherry Jacob-Phillips)