GLOBAL: Qatar and Kuwait have been reclassified as developed markets by JPMorgan and will no longer be eligible for the JPMorgan Emerging Market sovereign bond indices, Bashar Al-Natoor, the global head of Islamic finance at Fitch Ratings said. This change marks a shift in their debt capital markets, although both countries will continue to be tracked in the Middle East Composite Index and other indices such as CEMBI or Sukuk offerings will remain unaffected by the reclassification.
JPMorgan’s decision comes after Qatar and Kuwait exceeded the Emerging Market Index thresholds for three consecutive years, based on metrics such as gross national income per capita and cost of living. Both countries have also maintained a credit rating of at least ‘A-’ from Fitch during this period. As a result, they will exit the emerging market bond index family over a phased six-month transition.
