On Monday, JPMorgan announced its decision to exclude UAE bonds from its sovereign emerging markets indices, which the bank closely monitors, due to the rise in the country’s income levels.
JPMorgan clarified that the economic advancements in the UAE over recent years have resulted in surpassing the three main criteria for exclusion from its influential emerging market indices: gross national income per capita, cost of living, and a credit rating sustained over three consecutive years.
The bank stated that UAE bonds will be phased out of its emerging market bond indices through equal reductions over a four-month period, starting from March 31 and concluding on June 30.
According to Bloomberg, these indices are widely tracked by investors, and this shift could potentially alter the investor landscape in the long term.