Saudi Arabia and Philippines to join JP Morgan EM bond index
The inclusion of sovereign sukuk and government bonds will occur over a 10-month period beginning in January 2027, according to Economic Times.
Saudi Arabia and the Philippines will be included in the JP Morgan local-currency emerging market debt index starting from January 29, 2027, according to the Economic Times.
The US investment bank stated on Thursday that the addition will take place over a 10-month period. The move will incorporate Philippine peso-denominated government bonds and Saudi riyal-denominated sovereign sukuk into the GBI-EM index series.
The index will include eight Saudi sukuk instruments valued at $79 billion and nine Philippine bonds with a total notional value of $50 billion. Saudi Arabia's weight is expected to reach 2.71 per cent, while the Philippines' weight is expected to reach 1.64 per cent.
This update is part of a wider index adjustment that reduces the Country Cap, or the maximum share any single country can hold, from 10 per cent to 9 per cent. This change will result in reduced weights for China, India, Mexico, Malaysia, and Indonesia.
