The Saudi Market Authority is studying applications for the listing of 45 companies

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Abdullah bin Ghannam, Undersecretary of the Saudi Capital Market Authority for listed companies and investment products, said that the authority aims to increase the pace of listings in the financial market as part of efforts to support the economy, develop new and promising sectors and provide financing channels for them. Where the authority approved the offering and listing of 10 companies during 2021, in addition to 45 files for offering and listing companies under review as at the end of the first half of this year.

He added that the number of listings in the financial market rose to 11 companies and closed investment funds traded during this year, bringing the total number of companies and investment funds listed in the financial market to 217.

Bin Ghannam explained that the Authority’s efforts are continuing to deepen the market for sukuk and debt instruments, as it approved this year reducing the period for reviewing requests for public offering of debt instruments from 45 days to 20 days to facilitate requests for offering sukuk and debt instruments, as well as obligating issuers to disclose deals of sukuk and debt instruments offered privately on the website. Tadawul Saudi to increase the level of transparency in the market.

The Authority’s representative indicated that the Authority has added additional channels for non-resident foreign investors to participate in the market by allowing them to directly invest in listed and unlisted debt instruments, and to approve the instructions for international securities depository centers to develop the debt instruments market by aligning its regulatory requirements with best practices. International.

He explained that this would contribute to a more effective participation of the foreign investor in the local bond market, which would contribute to higher stability in the market by diversifying the investor base without relying on a specific category of them, and adding additional financiers to issuers wishing to issue sukuk or bonds to finance their business, in addition to increasing liquidity. and trading in the listed debt instruments market.

He continued: “This contributed to the doubling of foreign investors’ investments in the sukuk and debt instruments market by 223% in the second quarter of this year compared to the second quarter of 2020, and the increase in the volume of private sector offerings to the sukuk and debt instruments market during the second quarter of 2021 to reach 12.5 billion riyals, compared to 2.1 billion riyals during the second quarter of 2020, an increase of nearly fivefold.

He explained that the size of the sukuk and debt instruments market increased as a percentage of GDP during the second quarter of 2021 to reach 27%, compared to 18.6% during the second quarter of 2020, an increase of 45%.

The authority also worked to increase the weighted average maturity date of money market funds investments from 120 days to 180 days, and to include government sukuk exchange-traded funds in 2020 AD in order to support the most important channel for investing small investors in this market.

Bin Ghannam indicated that the Authority will continue to raise the market’s attractiveness to foreign investors during this year, by obliging issuers of securities listed on the main market to make any public disclosure in both Arabic and English, in order to enhance transparency and facilitate the flow of important information to investors and the public, and reduce risks in securities transactions. . This disclosure also contributes to raising the level of research, studies and evaluations that are conducted on the Saudi financial market. Which provides all dealers with information that helps them in making their investment decisions.

He also stressed that the Authority’s obligation for listed companies to allow automatic voting for shareholders in the general assemblies of listed joint stock companies contributed to a significant increase in the number of automatic voters, reaching 99% of the total voters in 2020.





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