Saudi Sukuk joins FTSE Russell’s index

FTSE Russell said yesterday, Thursday, that Saudi sukuk will be added to its index of government bonds for emerging markets in the local currency, which is widely followed as of April 2022.

FTSE Russell stated that 42 bonds worth 306.1 billion Saudi riyals ($81.6 billion) are expected to be included in the index, and will constitute 2.75% of it on the basis of a weighted market value, according to “Reuters”.

The National Center for Debt Management in Saudi Arabia had announced in mid-September the completion of receiving investor requests for its local issuance for the same month, under the government’s sukuk program denominated in Saudi riyals, where the issue size was set at a total amount of 6.675 billion riyals.

It is noteworthy that the National Center for Debt Management in Saudi Arabia had announced the issuance of local sukuk for the month of July, under the same program, with a total amount of 11.358 billion riyals.

The volume of the July issue was set at a total of 10.412 billion riyals.

On the other hand, according to Moody’s, Saudi sukuk constitute 62% of Gulf issuances, and the contribution of Saudi companies’ issuances has risen to 30% of the total, with the support of banks and Aramco.

Aramco issued a $6 billion sukuk in June 2021.

Standard & Poor’s said that global market conditions are supportive of sukuk issuance in the second half of 2021, amid low interest rates and ample liquidity.


Saudi Sukuk joins FTSE Russells index

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