Tadawul joins iBoxx Global Government Bond Index

Tadawul trading screen

IHS Markit included Saudi Exchange (Tadawul)  in its iBoxx Global Government Bond Index, as the Saudi market fulfilled the necessary requirements. 

The inclusion was driven by the enhancements made in the sukuk and debt instruments market, the Capital Market Authority (CMA) said in a statement received by Argaam.

Tadawul will be part of the sukuk and debt instrument indices tracked by global investors. iBoxx measures the performance of local-currency Government bonds in over 30 countries.

A total of 27 government debt instruments are expected to join iBoxx, whose weight will reach 0.19% of the index and 2.20% of iBoxx Global Emerging Markets Local Currency Bond Index. Tadawul’s inclusion will come into effect on Jan. 31, 2022.

In October, FTSE Russell, a leading global index provider of benchmarks, analytics, and data solutions, included Saudi Arabia in FTSE Emerging Markets Government Bond Index (EMGBI) effective April 2022, Argaam reported.