Tadawul launches investor relation best practice toolkit

The Saudi Stock Exchange (Tadawul) launched today the investor relation best practice toolkit to support the listed firms in enhancing their practices with the investors and promoting transparency to the highest levels.

This guide is a step to develop the Saudi Stock Exchange to be equal to its more advanced counterparts around the world.

It provides information, advice and support to all companies either listed on or about to list on Tadawul. It outlines the key principles of international best practice and provides an explanation of the benefits of following these standards.

One of the guide's key objectives is to improve the quality of investor relations strategies and tactics, and consequently boosting the local and foreign investors' confidence.

Mohammed Sulaiman Al Rumaih, Chief of Markets at Tadawul, commented on launching the toolkit, saying that enhancing the corporate governance strengthens the investors' confidence in Tadawul and entrenches its position among the global financial markets, especially after being included in the most important global indices.

In 2017, Tadawul signed a Memorandum of Understanding (MOU) with the Middle East Investor Relations Association (MEIRA) to promote best practices in investor relations and raise the level of transparency at Saudi companies.

Moreover, Rayan Ibrahim Al Karawi, Chairman of the Saudi Chapter of MEIRA, highlighted that the inclusion of Saudi Arabia in the MSCI Emerging Markets and the FTSE Russell Indices reflects the growing investor confidence in the Saudi market.

Tadawul includes 195 Saudi companies across a diversified portfolio of sectors with a combined market capitalization of more than $523 billion, which make it ranks the 7th among the largest emerging market stock market worldwide.