The Council of Saudi Chambers, along with government and private-sector entities, is leading intensive efforts to encourage private-sector companies to list on the Saudi stock market, thereby helping to increase transparency, and enhance government effectiveness, thereby supporting the sustainability and profitability of companies, cementing the Saudi capital market’s position as an advanced, technologically sophisticated, and leading market among emerging markets, and strengthening its contribution to the national economy.
In this context, an economic forum revealed the formation of a government committee comprising “the Capital Market Authority, the Ministry of Commerce, the Small and Medium Enterprises Authority, and Tadawul” with the aim of creating incentives for companies to list on the Saudi market and facilitating the listing process. The “committee” has launched about 12 incentives, ranging from basic to supplementary, most notably giving additional weight to listed companies in the government procurement and projects system, promoting local content, and raising the borrowing ceiling with the Industrial and Real Estate Development Fund.
This announcement came during the workshop “Listing on the Tadawul Financial Market,” which was held “today” at the headquarters of the Council of Saudi Chambers of Commerce in Riyadh, attended by the Council’s Chairman, Mr. Ajlan Al-Ajlan; the CEO of Tadawul Group, Eng. Khalid Al-Hussan; heads of national committees; and business leaders, in a move aimed at supporting the government’s efforts to encourage national companies to list on the financial market.
Ajlan Al-Ajlan, President of the Council of Saudi Chambers of Commerce, emphasized the importance of the private sector’s role in the national economy and in creating initiatives and programs to ensure the sustainability of national companies, so that they may play a leading role in the economic development our country is undergoing, in cooperation with all relevant entities, including “Tadawul.”
Al-Ajlan said, ”We have been working over the past period on a number of initiatives and programs that have been formalized through a memorandum of understanding signed today between the Federation of Chambers and Tadawul, aimed at increasing integration and coordination in the exchange of information about the capital market, build the capacity of national companies to enter the financial market, enable them to list, and achieve other objectives.”
Al-Ajlan praised the development of the Saudi financial market and the relevant regulations and legislation, which have contributed to the Kingdom’s high international rankings, as well as the inclusion of the Saudi financial market in global indices and the rise in foreign ownership in the market, expressing his hope that the workshop would help increase national companies” understanding of listing requirements, procedures, and related specific conditions.
For his part, Engineer Khalid Al-Hussan, CEO of the Tadawul Group, explained that ”Tadawul“ is working to develop existing incentives or introduce new ones, emphasizing that there are ”non-financial“ incentives offered by government agencies—namely legislative incentives—and that Tadawul and the Capital Market Authority are working to establish a flexible approach to developing legislative frameworks, whether those pertaining to Tadawul and the Authority or to other sectors, which helps overcome challenges.
In addition, a memorandum of understanding was signed between the Council of Saudi Chambers and the Tadawul Group, aimed at fostering coordination and cooperation between the two parties to fulfill their respective roles regarding information exchange and capacity building within their respective areas of expertise, and fostering integration between them in a manner that serves the public interest in accordance with each party’s areas of expertise, as well as working to establish an effective mechanism for educating and raising awareness among companies affiliated with the Federation of Saudi Chambers of Commerce regarding the process and benefits of listing on the Saudi capital market and enabling them to do so, highlighting shared success stories and promoting the importance of listing on the Saudi financial markets for companies operating in various sectors, as well as the impact of such listings on individual businesses and the national economy.
Government committee offers 12 incentives for companies to list on the Saudi capital market
