Saudi Arabia has been added to J.P. Morgan’s Emerging Market Bond Index Watchlist, a move expected to boost global investor participation and enhance market liquidity.

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.

"Saudi Arabia’s addition to J.P. Morgan's emerging market debt index watchlist is a big win for the Saudi sukuk and Debt Capital Market and will eventually pave the way for greater liquidity and increased investor participation,” Mohammed Al Rumaih, CEO of the Saudi Exchange, said.

The total value of sukuk and debt traded on the Saudi Exchange reached SAR 688 billion ($183 billion). The Saudi sukuk and debt capital market also recorded a 25% year-on-year increase in foreign investment in Q2 2025.

Saudi Arabia’s major issuances in September, including one aimed at funding its Vision 2030 economic transformation programme, have reinforced the kingdom’s dominance in regional debt market issuance, as a sovereign, corporate, or financial institution issuer, established over the past 18 months.

“We expect that Saudi Arabia will continue to drive DCM issuances this year in the Middle East as they look to further fund the country’s economic transformation, followed by the UAE and, to a lesser extent, the remainder of the GCC,” Nour Safa, Managing Director, Head of MENA Debt Capital Markets at HSBC, told Zawya.

(Writing by Seban Scaria seban.scaria@lseg.com; editing by Daniel Luiz)