A look back at the Saudi market's main events in 2017

The Saudi market has seen several significant local and international events this year, including a royal decree appointing Prince Mohammed bin Salman as Crown Prince, as well as the Kingdom’s recent anti-corruption purge.

Argaam lists the major events affecting the market in 2017, ranked in order of date.

1) In January, Tadawul reclassified its equity market sectors according to the Global Industry Classification Standard (GICS) to consist of 20 sectors instead of 15.

2) In February, Sarah Al-Suhaimi was named the new chairperson of the Saudi Stock Exchange (Tadawul), becoming the Kingdom’s first woman to fill the position.

3) By the end of February, Tadawul launched the Nomu Parallel Market, with seven companies listed on the index. The number of Nomu-listed companies later rose to to nine firms.

4) The Kingdom’s Sakani Housing Program was also launched in February. The program has allocated 282,700 housing and financing products since the beginning of this year.

5) In April, the Saudi Capital Market Authority (CMA) decided to extend the period for companies to post financial statements for each quarter to 30 working days from 15 working days, starting Q1 2017.

6) The CMA on April 22 started to implement new rules for firms with accumulated losses of 20 percent of capital.

7) Tadawul on April 23 adopted a T+2 settlement cycle for listed securities, allowing a two-day settlement period for transactions.

8) The CMA in April delisted the shares of four companies with accumulated losses exceeding 50 percent of capital: Al Mojil Group, Weqaya Insurance, Bishah Agriculture Development Co. and Sanad Cooperative Insurance Company.

9) Saudi Arabia this year started to reveal quarterly reports on the state budget, in order to boost performance and ensure transparency.

10) In May, Tadawul approved amending the securities tick sizes (price change units) effective June 4. The change applies to all securities listed on Tadawul and Nomu, as well as Real Estate Investment Traded Funds (REITs) and tradable rights.

11) The CMA imposed a four-year trading ban on AlBaha Investment & Development Co. (AlBaha) as of June 4.

12) On June 5, Saudi Arabia cut diplomatic ties with Qatar, and closed all land, sea, and air travel to and from the country.

13) The Kingdom imposed a 100 percent selective tax on tobacco and energy drinks, and a 50 percent selective tax on soft drinks, starting June 11.

14) Also in June, King Salman issued a royal decree appointing Prince Mohammed bin Salman as Crown Prince.

15) King Salman also issued directives the same month to retroactively reinstate all allowances and bonuses that were canceled or suspended to civil servants and military personnel.

16) Global index compiler MSCI in June added Saudi Arabia to a watch list for a potential upgrade to emerging market status.

17) On July 1, the Kingdom started imposing a new fee on the dependents of expatriate workers, which was approved by the cabinet as part of the Fiscal Balance Program in 2016.

18) Saudi Arabia canceled all export duties on steel for two years and slashed cement export tariffs by 50 percent to encourage local industries and producers, and enhance competition.

19) Also in July, a royal decree was issued naming Mohammed Abdullah El-Kuwaiz as chairman of the CMA.

20) Saudi Arabia in September lifted the ban placed on voice and video call applications that fulfill regulatory requirements.

21) A historic royal decree was issued the same month allowing women to drive and obtain a driving license starting in June 2018.

22) FTSE Russell Index in September denied Saudi Arabia entry to its index of emerging market countries. The index provider will reevaluate the Kingdom’s inclusion again in March 2018.

23) The Public Investment fund (PIF) launched several projects this year including NEOM, the Red Sea tourism project, and Rou’a Al Haram and Rou’a Al Madinah, in addition to setting up a number of local firms under the Vision 2030 reform plan.

24) In October, the CMA canceled Arabian Waterproofing Industries’ (Awazel) IPO upon the firm’s request.

25) The regulator approved allowing direct investment of non-resident foreigners in the Nomu Parallel Market, effective from Jan. 1, 2018.

26) In November, Saudi Arabia launched an anti-corruption purge led by Prince Mohammed, in which several princes, top officials, and businessmen were arrested. The government estimates that at least $100 billion has been misused through systematic corruption and embezzlement over past decades.

27) The same month, the CMA exempted Saudi companies from revealing their financial statements for Q4 this year.

28) On Nov. 30, OPEC and allied non-members led by Russia agreed to extend their ongoing agreement to cut production until the end of 2018. The group last year decided to reduce output by a combined 1.8 million barrels per day to tackle the global supply glut and boost prices.

29) The Saudi Arabian Monetary Authority (SAMA) in December raised its reverse repo rate by 25 basis points to 1.50 percent, after the US Federal Reserve’s decision to increase the federal funds rate. SAMA left the repo rate unchanged at 200 basis points (2 percent). The Fed has raised the benchmark interest rate three times in 2017 to a range of 1.25 percent to 1.50 percent.

30) A total of six real estate traded (REIT) funds were listed in 2017, while another nine funds were approved.

31) King Salman on Dec. 14 issued a royal decree approving a SAR 72 billion stimulus plan for the private sector.

32) The Saudi Cabinet this month approved the gradual increase of electricity tariffs as of Jan. 1, 2018.

33) King Salman announced extending the Fiscal Balance Program until 2023.

34) Saudi Arabia on Dec. 19 announced its state budget for 2018, the biggest ever in the Kingdom’s history despite cheaper oil prices. The new budget set 2018 revenue at SAR 783 billion and public spending at SAR 978 billion, with a projected deficit of SAR 195 billion.

35) On Dec. 21, the Saudi government released the first installment of the Citizen’s Account Program at SAR 2 billion for 82 percent, or 10.6 million, of the registered beneficiaries. Following installments will be disbursed on the tenth day of each month.