RIYADH: Companies who list on the Saudi Stock Exchange (Tadawul) will automatically receive the qualification certificate of the Real Estate Developer Program, meaning they will be licensed to sell off-plan properties, as part of an agreement signed between the Saudi Tadawul Group and the Off-plan Sales or Rent Program (Wafi).
The move is the second incentive program to be launched in recent weeks as part of a bid to expand the number of listed firms on the Tadawul, after the Saudi Authority for Industrial Cities and Technology Zones (MODON) launched an incentive package to encourage companies to list shares in June.
Economists in the Kingdom predict a wave of initial public listings (IPOs) could be lined up for the Tadawul later this year.
One financial consultant who asked not to be named told Arab News that, from September onwards, IPOs will be “coming thick and fast,” estimating that around 30 companies are currently talking to the Capital Markets Authority, the Kingdom’s stock market regulator, with a view to getting a slot for an IPO later this year.
