Governmental committee provides 12 incentives to list companies on Tadawul

Workshop meeting

An economic gathering revealed the formation of a government committee, that includes the Capital Market Authority (CMA), Ministry of Commerce, Small and Medium Enterprises General Authority (Monshaat), and Saudi Tadawul Group, with the aim of creating incentives for companies to list in the mainmarket and contribute to the listing operations.

According to a press statement, the committee launched 12 basic and complementary incentives, most notably adding additional weight to listed companies in the governmental procurement and projects law, local content, and increasing the borrowing ceiling at the Industrial and Real Estate Development Fund.

This came during a workshop, titled "Listing on Saudi Stock Market", which was held today, Sept. 6, at the headquarters of the Federation of Saudi Chambers of Commerce in Riyadh.

Chairperson of Council of Saudi Chambers, Ajlan bin Abdulaziz Al Ajlan, said: "We have worked during the past period on a number of initiatives and programs, which aims to increase integration and coordination in exchanging information about the financial market, and building the capabilities of companies to enter the market.”

Khaled Alhussan, CEO of Saudi Tadawul Group, said that Tadawul is working on developing the current incentives or adding new values, stressing that there are “non-material” incentives provided by government agencies, which are the legislative incentives.

In a related context, the Federation of Saudi Chambers of Commerce signed a memorandum of understanding (MoU) with Saudi Tadawul Group, which aims at coordination and cooperation between the two parties to carry out their respective roles in terms of exchanging information, building the capacities of each party, and educating companies affiliated to the Federation of Saudi Chambers about the mechanism and benefits of listing on the Saudi stock market.