DUBAI, Sept 17 (Reuters) - Saudi Arabia has been added

to a JPMorgan ( JPM ) bond index, the country's stock exchange said on

Wednesday, in a move that is expected to attract around $5

billion in initial foreign inflows into the kingdom's sukuk and

debt capital market.

JPMorgan's ( JPM ) Government Bond Index for Emerging

Markets is a benchmark tracking local currency-denominated bonds

and sukuk issued by governments in emerging markets.

The inclusion will "significantly" strengthen liquidity and

reinforce its appeal to international investors, the Saudi

Exchange said in a statement, as the kingdom is resorting to

debt markets amid huge investments to overhaul its economy and

lower oil prices.

Saudi Arabia has pushed forward with spending on a massive

economic transformation programme known as Vision 2030 that aims

to diversify its revenue sources to wean the economy off

dependence on hydrocarbon income.

The kingdom, which enjoys a low debt-to-GDP ratio and

confidence from lenders, was among the largest emerging market

debt issuers last year and in the first six months of 2025.

It regularly tapped debt markets to plug a growing budget

deficit and is projected to post a fiscal deficit of around $27

billion this year.

This month, it raised $5.50 billion from the sale of

dual-tranche dollar-denominated Islamic bonds.

Companies in the country, including state oil giant Aramco

and sovereign wealth fund PIF, have also been tapping the debt

markets, with both attracting strong demand with issuances this

month.

($1 = 3.7515 riyals)