Saudi Arabia expects inclusion in JPMorgan bond index to boost debt market inflows

Saudi Arabia has been added to a JPMorgan bond index, the country's stock exchange said on Wednesday, in a move that is expected to attract around $5 billion in initial foreign inflows into the kingdom's sukuk and debt capital market.

JPMorgan's JPM Government Bond Index for Emerging Markets is a benchmark tracking local currency-denominated bonds and sukuk issued by governments in emerging markets.

The inclusion will "significantly" strengthen liquidity and reinforce its appeal to international investors, the Saudi Exchange said in a statement, as the kingdom is resorting to debt markets amid huge investments to overhaul its economy and lower oil prices.

Saudi Arabia has pushed forward with spending on a massive economic transformation programme known as Vision 2030 that aims to diversify its revenue sources to wean the economy off dependence on hydrocarbon income.

The kingdom, which enjoys a low debt-to-GDP ratio and confidence from lenders, was among the largest emerging market debt issuers last year and in the first six months of 2025.

It regularly tapped debt markets to plug a growing budget deficit and is projected to post a fiscal deficit of around $27 billion this year.

This month, it raised $5.50 billion from the sale of dual-tranche dollar-denominated Islamic bonds.

Companies in the country, including state oil giant Aramco and sovereign wealth fund PIF, have also been tapping the debt markets, with both attracting strong demand with issuances this month.

($1 = 3.7515 riyals)