Saudi Arabia Prioritizes Domestic Listings to Limit Capital Outflows, Says CMA Chief
The Saudi Capital Market Authority has shifted its focus from dual listings to domestic ones, according to Chairman Mohammed El-Kuwaiz.
Riyadh: The Saudi Capital Market Authority (CMA) has changed its strategy, prioritizing local listings in an effort to curb capital outflows, said CMA's chairman, Mohammed El-Kuwaiz.
He highlighted the increasing interest from national companies aiming to list on the stock exchange during a conference organized by the Small and Medium Enterprises General Authority in Riyadh.
According to El-Kuwaiz, listing on the market allows firms to access financing while foreign company listings in Saudi Arabia may lead to capital being redirected abroad.
Therefore, the authority has focused on supporting local businesses seeking domestic listings.
El-Kuwaiz also confirmed that foreign companies are still permitted to list on the Saudi market as long as they adhere to CMA's listing requirements, such as relocating their headquarters or ensuring funds remain within the country post-listing.
He emphasized that the authority has successfully attracted foreign investments in both the primary and secondary markets, reaching a total of SR600 billion ($159.9 billion) so far.
The chairman noted that foreign trading on the Nomu market, which represents 20% of its market value currently standing at SR40 billion with 150 listed companies, has significantly grown since its inception in 2017.
Nomu has facilitated over SR8 billion in financing for SMEs through capital increases or owner exits and enabled the transfer of 20 companies to the main market.
Furthermore, El-Kuwaiz mentioned that crowdfunding platforms have been providing an average of SR8 billion annually to support SMEs in Saudi Arabia.
Additionally, he stated that the debt and bond market has grown larger than the stock market over the past three years.
He highlighted the increasing interest from national companies aiming to list on the stock exchange during a conference organized by the Small and Medium Enterprises General Authority in Riyadh.
According to El-Kuwaiz, listing on the market allows firms to access financing while foreign company listings in Saudi Arabia may lead to capital being redirected abroad.
Therefore, the authority has focused on supporting local businesses seeking domestic listings.
El-Kuwaiz also confirmed that foreign companies are still permitted to list on the Saudi market as long as they adhere to CMA's listing requirements, such as relocating their headquarters or ensuring funds remain within the country post-listing.
He emphasized that the authority has successfully attracted foreign investments in both the primary and secondary markets, reaching a total of SR600 billion ($159.9 billion) so far.
The chairman noted that foreign trading on the Nomu market, which represents 20% of its market value currently standing at SR40 billion with 150 listed companies, has significantly grown since its inception in 2017.
Nomu has facilitated over SR8 billion in financing for SMEs through capital increases or owner exits and enabled the transfer of 20 companies to the main market.
Furthermore, El-Kuwaiz mentioned that crowdfunding platforms have been providing an average of SR8 billion annually to support SMEs in Saudi Arabia.
Additionally, he stated that the debt and bond market has grown larger than the stock market over the past three years.
