Riyadh – Mubasher: The Saudi Stock Exchange (Tadawul) has developed, in collaboration with IHS Markit, a broader local currency-denominated benchmark index, iBoxx Tadawul SAR Government Sukuk & Bond Index, and iBoxx Tadawul SAR Government Sukuk Index Series, which is divided into maturity sub-indices.
The indices provide transparency to the Saudi local currency and Saudi Government Sukuk and Bond market performance, Tadawul said in a recent statement.
As part of the primary tools of active and passive investment managers, these indices can be used by dealer banks, ETF issuers, buy-side investment firms, and third-party vendors to benchmark portfolio performance and risk.
“ETFs and Mutual Funds linked to these indices can provide a transparent, cost-effective way to gain exposure to local currency Saudi Government Sukuk and Bond market. Instead of purchasing multiple Sukuks and Bonds, investors can purchase a single ETF unit, which trades actively on an exchange,” the statement said.
