JP Morgan said on Thursday that Saudi Arabia and the Philippines will be added to its closely followed local-currency emerging market debt index over a 10-month period starting from January 29, 2027.
The inclusion, which was first sketched out in April, will bring Saudi riyal-denominated sovereign sukuk and Philippine peso-denominated government bonds into the US investment bank's widely tracked GBI-EM index series
Their weights will be introduced gradually, with Saudi Arabia's weight expected to reach 2.71% once fully phased in, slightly higher than originally flagged, and the Philippines' weight reaching 1.64%, marginally lower than indicated
The index will add nine Philippine bonds with a total notional value of $50 billion plus eight Saudi sukuk instruments worth $79 billion
JP Morgan's update is part of a broader index adjustment, which will lower the "Country Cap" - the maximum weight, or share, any single country can hold in the "diversified" index - to 9% from 10%
As a result, major markets including China, India, Mexico, Malaysia, and Indonesia will have their weight reduced to the new limit
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JP Morgan to add Philippines and Saudi Arabia to key EM bond index over 10 months
JP Morgan has announced plans to include Saudi Arabia and the Philippines in its emerging market debt index starting in 2027. The Saudi riyal-denominated sukuk and Philippine peso-denominated government bonds will be integrated over a ten-month period. The index is expected to adjust the maximum country weight limit from 10% to 9%. Saudi Arabia's weight will reach 2.71%, while the Philippines…
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- The Economic Times
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This story was first published by The Economic Times on 5 Nov 2026. HUE Legacy Ventures did not write it.
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