JPMorgan to remove UAE from emerging market bond indexes as wealth thresholds exceeded
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JPMorgan Chase & Co. will remove the United Arab Emirates from its emerging market bond indexes after the country surpassed the bank’s wealth criteria for three consecutive years.
The UAE currently accounts for 4.1 per cent of JPMorgan’s flagship emerging market bond index. Its removal will take place in four equal phases beginning March 31, a move expected to prompt portfolio adjustments among investors who closely track JPMorgan’s benchmark indexes.
The decision reflects the UAE’s sustained economic growth and rising income levels, which have pushed it beyond the threshold typically used to classify emerging markets. While the shift could reduce passive inflows from funds tied strictly to emerging market indexes, it may simultaneously attract greater interest from investors focused on developed market assets.
The change follows similar moves involving other Gulf economies, including Kuwait and Qatar, underscoring a broader regional trend of economic maturation.
Analysts say the reclassification highlights how Gulf nations are increasingly outgrowing their emerging market status, supported by strong fiscal positions, diversified economic strategies, and expanding sovereign wealth assets. Over time, the transition could reshape capital flows into the region, with a gradual pivot from emerging market funds toward developed market allocations.
