It led 8 comprehensive and radical reforms in the stock market to join the iBoxx Global Government Bonds Index yesterday, and it is expected that 27 government debt instruments listed on the Saudi stock market will join the index, which will constitute 0.19% of its weight. 2.20% of the iBooks index of government bonds for emerging countries with its official accession on January 31, 2022. The reforms included the inclusion and circulation of government debt instruments for all categories of investors in the local market in 2018, and allowing foreign investors to directly invest in debt instruments during the year 2020. During the same year, issuers wishing to publicly offer debt instruments were exempted from paying the financial consideration collected to the Authority upon submitting the application for registration, studying the application, and upon registration, until the end of 2025. An additional channel for foreign investors to invest in the local sukuk and debt instruments market. The nominal value of government debt instruments was also reduced to 1,000 riyals in 2019, and the consideration was restructured. The financial services related to registration, listing and trading in the sukuk and debt instruments market by Tadawul, and during the year 2020, a new special index was created in the local sukuk and debt instruments market, and the new index was launched on the Tadawul website, and the global provider of indices was IHC Market (IHS Markit). Yesterday, it was announced that the Saudi Stock Exchange has joined the iBoxx Global Government Bonds Index, and the iBoxx Global Government Bonds Index has been joined as a result of the tangible developments in the development of the sukuk and debt instruments market. The Saudi financial market’s fulfillment of the requirements to join the index, which includes many criteria, such as the openness of the financial market and the market value of government debt instruments.
Joining the Saudi market allows it to be part of the sukuk and debt instruments market indices followed by global investors. The iBooks Index measures government bonds denominated in the local currency of more than 30 countries, and it is expected that 27 government debt instruments listed on the Saudi stock market will join the index, which will constitute what 0.19% of its weight, and it will constitute 2.20% of the iBooks Index of government bonds for emerging countries to which it belongs, and joining the index will be activated on January 31, 2022 AD, it is noteworthy that FTSE Russel had announced last October Regarding the Saudi stock market joining the FTSE Russell Emerging Markets Index for government bonds, it is worth noting that the CMA’s strategic plan includes developing the sukuk and debt instruments market, and creating an attractive environment for all categories of local and international investors alike, which contributed to raising foreign investors’ ownership of sukuk and debt instruments by 455 percent. % from the third quarter of 2020 AD to the third quarter of 2021.
Major reforms in the stock market
930 billion riyals government debt
75 billion riyals in government bonds this year
At least 550 billion riyals total government bonds
Listing and trading of government debt instruments for all categories of investors
Exempting exporters from paying the financial consideration
Allow foreign investors to directly invest in debt instruments
Reducing the nominal value of debt instruments to 1000 riyals
Restructuring the fee for services
Establishing a special index in the local sukuk and debt instruments market