Stimulating foreign and local companies to list in the Saudi market

The Capital Market Authority confirmed that its strategic plan (2021-2023) aims to stimulate the private sector to list in the financial market, develop the parallel market (Nomu), prepare regulatory concepts to encourage foreign companies to offer their shares in the Saudi market, and raise the market’s attractiveness to foreign investors. The Authority explained that the updated strategic plan focuses on several priorities, the most prominent of which is for the Saudi financial market to become the main one in the Middle East, and one of the most important markets in the world, and to be advanced and attractive to local and foreign investment, enabling it to play a pivotal role in developing the economy and diversifying the economy. Sources of income. It also works to raise the market’s attractiveness to foreign investors, whether in issuance or direct trading, and to increase the proportion of foreign investment from the market capitalization. It also aspires to increase the depth of the market and attract more developing companies through a parallel market full of companies, and a major market that continues with the series of listings. The number of companies listed in the main and parallel market exceeds 270 companies, raising liquidity rates to achieve the goals of participants in the financial market, and benefiting from the flowing capital as a result of the inclusion of the Saudi market in the emerging international indicators, thus contributing to achieving the goals of the Kingdom’s Vision 2030. The authority also aspires to double the amount of funds invested through managed channels to exceed 800 billion riyals. The Saudi market joined 3 international indices recently, and witnessed in-depth reforms over 6 years in order to attract foreign investments and support institutional investment. The market index has risen more than 20% since the beginning of this year, in light of the improved performance and the relative recovery of oil prices.

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