iBoxx Tadawul SAR Government Sukuk Index
The iBoxx Tadawul SAR Government Sukuk Index total return level rose in the first quarter of 2023, recovering from sharp declines seen in the last quarter of 2022. The index’s overall duration rose quarter-over-quarter, even as it came down between January and March 2023. Annual yield for the index fell in sympathy with the wider bond market, which has been seeing a declining trend, especially on the longer end of the curve (see Exhibits 5 and 11 for the sukuk and bond index). No new bonds were added to the index, but one departed, leading to a slight dip in the total number of constituents, to 52 instruments. The sukuk and bond index saw constituents fall by three, to 59 instruments, at the March month-end rebalance.
