FTSE Russell also said New Zealand will enter the FTSE World Inflation-Linked Securities index and will comprise 0.45% of the index on a market value-weighted basis.
At the same time, the index provider kept India on its FTSE fixed-income watchlist for an upgrade to the FTSE Emerging Markets Government Bond index, acknowledging India's progress towards reforms that will help foreign investors access the market.
Switzerland was also placed on a watchlist for a potential inclusion to the World Government Bond index.
"FTSE Russell is pleased to see Saudi Arabia and Kazakhstan receive fixed income country classification promotions and is encouraged by India's progress towards inclusion in mainstream local currency emerging markets indices such as the FTSE EMGBI," David Sol, managing director, index policy at FTSE Russell, said in a news release Friday.
Mohammed Al-Rumaih, CEO of the Saudi Stock Exchange, added in a separate news release: "The Saudi capital market continues to grow at pace and the inclusion of Saudi Arabia in the FTSE Emerging Markets Government Bond index highlights the importance of the enhancements made by the Saudi Exchange, which is a landmark achievement that will pave the way for its recognition globally."
Separately, with regards to its equity country classification, FTSE Russell said Russia will remain on the watchlist.
The index provider will conduct a review in March 2022 for possible reclassification to an advanced emerging market from a secondary emerging market during the review in March 2022. FTSE Russell added Russia to its equity watchlist in September 2020 and indicated that it seek improvements to the registration process for new accounts.
Vietnam was also kept on the equity watchlist as a frontier market and will be reviewed next March for possible reclassification as secondary emerging market. FTSE Russell said Vietnam has yet to demonstrate reforms to its post-trade settlement cycle and improve registration process of new accounts for international investors.
Also, Iceland and Mongolia were added to FTSE's equity watchlist for possible promotions to secondary emerging market from frontier markets and to frontier market from non-classified, respectively.