iBoxx Tadawul SAR Government Sukuk Index
The iBoxx Tadawul SAR Government Sukuk Index total return level declined over the course of 2022, in line with other bond markets, which all were under pressure throughout the year. The index touched its low point at the end of October, falling under 99 for two days. Toward the end of the year, the levels recovered, but annual yields have stayed elevated even at the end of 2022, as countries’ interest rates rose, following increases by the U.S. Federal Reserve. Meanwhile, index duration plunged (see Exhibit 4), with subdued new debt issuance.
