FTSE Russell to place Saudi debt market on watchlist for upgrade

Saudi Stock Exchange's trading screen

FTSE Russell said that Saudi Arabia’s secondary debt market will be placed on the watchlist for potential reclassification of its market accessibility level from “0” to “1”, and consideration for inclusion in the FTSE Emerging Markets Government Bond Index (EMGBI).

Since launching a standalone government bond index, tracking local currency Saudi Arabian government bonds in September 2020, FTSE Russell has engaged in an active dialogue with index users and local regulators in Saudi Arabia to understand the market structure and investor experiences, the index provider said in a statement.

It also indicated that it will seek to continue its valuable interaction with the Saudi Arabia’s market authorities and participants.

FTSE Russell also added that any decision to upgrade fixed income markets on the watchlist to emerging markets will be taken as part of the September 2021 review.

In August 2020, the global index provider launched a bond index for Saudi Arabia to measure the performance of fixed-rate, local currency government bonds, according to data compiled by Argaam.