FTSE Russell launches Saudi government bond index

Global index provider FTSE Russell announced on Thursday launching a bond index for Saudi Arabia to measure the performance of fixed-rate, local currency government bonds, Reuters reported.

The FTSE Saudi Arabian Government Bond Index will cover sukuk and non-sukuk government bonds with at least one year to maturity and a minimum amount outstanding of SAR 1 billion.

Riyadh’s government bond market will be reviewed by FTSE Russell in its Fixed Income Country Classification review next month, which could lead to an inclusion of Saudi domestic bonds in the FTSE Emerging Markets Government Bond Index (EMGBI).

As of July 31, 2020, 45 Saudi securities with a total market value of 273.2 billion riyals ($72.9 billion) were eligible for inclusion in the index, the global index provider added.