RIYADH: The Saudi Capital Market Authority has shifted its focus from dual listings to domestic ones, Chairman Mohammed El-Kuwaiz told Al-Eqtisadiah, citing surging interest from national companies seeking to list on the stock exchange.
Speaking on the sidelines of the Funding Week, organised by the Small and Medium Enterprises General Authority in Riyadh, he added that listing on the market allows a firm to obtain financing, whereas listing foreign companies on the Saudi market leads to the outflow of financing funds abroad.
Therefore, El-Kuwaiz added, the authority has prioritized local companies and entrepreneurs seeking to list on the stock market.
At the same time, he confirmed that the authority continues to allow foreign businesses to list on the Saudi market, provided they comply with CMA’s listing conditions, including relocating their headquarters or ensuring funds do not leave the country after the listing.
The chairman pointed out that the authority has managed to attract foreign investments in the main stock market and the parallel market, amounting to SR600 billion ($159.9 billion) so far.
Foreign trading on Nomu reached 20 percent, with its market value currently standing at SR40 billion, and 150 companies listed. El-Kuwaiz explained that since its launch in 2017, Nomu has enabled SR8 billion in financing for SMEs through capital increases or owner exits, in addition to the transfer of 20 companies to the main market.
He also noted that crowdfunding platforms in Saudi Arabia have provided SR8 billion annually in financing to SMEs. Additionally, the debt and bond market has become larger than the stock market in Saudi Arabia over the past three years.
