Saudi bourse joins new emerging-markets index

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  • The accession will allow the Saudi Sukuk and Debt instruments to be part of corresponding global market indicators that investors follow
  • This would have been made possible by the actions that the Capital Market Authority of Saudi Arabia has taken

The Saudi Stock Exchange has joined the FTSE Emerging Markets of Government Bond Index or EMGBI, said official sources on Friday, October 1.

FTSE Russell, which is a global index provider, has also officially made the announcement.

This is said to have been made possible by the efforts of the Saudi Capital Market Authority, in addition to its efforts with the relevant authorities in developing the Sukuk and Debt instruments market, which took only six months since joining the list of monitoring of the index on March 2021 until its actual accession to the index on September 30, 2021.

The accession is expected to allow the Saudi Sukuk and Debt instruments to be part of the sukuk and debt instruments market indicators that international investors follow due to the actions that CMA took in the previous period.

Categories of investors in the local market in 2018, and foreign investors were allowed to invest directly in debt instruments in 2020.

The same year, issuers wishing to offer debt instruments were exempted from paying the financial compensation collected to the authority when submitting an application for registration, studying the application, and upon registration.

From 2021 to the end of 2025, the authority is approving the instructions for international securities depository centers, which provided an additional channel for foreign investors to invest in the local sukuk and debt instruments market.

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