2026-02-25 07:20:34
JPMorgan excludes UAE from EMBI Index: phased exit by 2026, 4.1% weight faces passive fund reallocation
On February 25, JPMorgan Chase announced that it will remove the United Arab Emirates from its core emerging market bond index system, with several benchmarks including the EMBI Global Diversified Index being adjusted accordingly. Currently, the UAE accounts for approximately 4.1% of the relevant indices. This adjustment will be implemented starting March 31, 2026, and will gradually reduce the weight in four phases, with full removal expected by June 30, 2026.
The main reason for this adjustment is that the UAE has exceeded the emerging market income threshold for three consecutive years, qualifying for the "income graduation" mechanism. Benefiting from high oil and gas revenues, tourism growth, and economic diversification efforts, the UAE's macroeconomic fundamentals continue to improve. At the same time, its sovereign credit rating has reached the AA range, gradually aligning with developed economies. Previously, Qatar and Kuwait also experienced similar index adjustment paths due to their economic maturity.