Eight Saudi Sukuk Worth $79 Billion to Enter JPMorgan Index in 2027
Key Facts
JPMorgan plans to include Saudi riyal-denominated sovereign sukuk and Philippine peso-denominated government bonds in its GBI-EM index series, in phases beginning on January 29, 2027 and spanning ten months, Reuters reported. The addition includes 8 Saudi sukuk worth $79 billion, alongside 9 Philippine issues with a total nominal value of $50 billion. The decision adds local debt instruments from both countries to an emerging-market bond index, according to details of the announcement. In Saudi Arabia, Finance Minister Mohammed Al-Jadaan said the inclusion reflects investor confidence in the Kingdom’s economic transformation. He added that the move will help broaden the investor base and attract long-term capital flows to the Saudi debt market.
The Saudi and Philippine issues will begin entering the index on the same date, but the expected Saudi weight upon completion differs between the estimate in the April announcement and the latest details. Saudi Arabia’s Ministry of Finance said in April that the sukuk were expected to account for 2.52% of the index, with phased inclusion beginning on January 29, 2027. The current announcement’s details give the number and nominal value of the issues, but no updated figure for Saudi Arabia’s weight after the phases are completed. Al-Jadaan said the inclusion of government sukuk denominated in riyals would begin in phases. The available information does not include an updated estimate of the Saudi weight in the current announcement.
The inclusion of instruments from both countries coincides with a change to the country-weight cap in the diversified version of the index, as JPMorgan plans to lower the maximum from 10% to 9%. China, India, Mexico, Malaysia and Indonesia are among the countries whose weights will be reduced to the new cap, Reuters reported. The change alters the permitted representation of any single country in the index, alongside the addition of new Saudi and Philippine issues. The nominal values of the two additions differ: $79 billion for the Saudi sukuk and $50 billion for the Philippine bonds. These values are not estimates of investment flows resulting from the inclusion.
Philippine peso-denominated government bonds were placed on a positive watch list on September 15, 2025, for potential inclusion in the GBI-EM series, according to the Philippine Treasury. The office said non-resident ownership of the bonds rose from 1.8% in 2021 to 6.03% in August 2025, equivalent to $12.78 billion. It attributed the market’s progress to reforms that included making the bonds available through Euroclear, improving secondary-market liquidity by standardizing benchmark maturities, and developing the primary dealer system. It also cited the expansion of the repurchase market and the launch of a peso interest-rate swaps market. Philippine central bank Governor Eli Remolona said greater bond liquidity helps the central bank transmit monetary policy in a way that benefits borrowers and investors.
JPMorgan shares closed at $337.34 in the November 5, 2026 session, according to EL7 data. The close came on the day of the announcement covering the inclusion of Saudi and Philippine debt instruments, while the index addition process is due to begin in January 2027. The announced timetable remains a start date of January 29 and a duration of ten months. In April, Saudi Arabia’s Ministry of Finance said the sukuk would be added gradually and estimated their weight at 2.52% at the time. No final weights after the phased inclusion are specified in the current announcement’s details.