Foreign investment helps stabilise Tadawul - Saudi CMA chariman
The Saudi CMA is the largest across the Middle East and makes up 70% of its market capitalisation
A man walks at the Saudi Stock Exchange (Tadawul) following the debut of Saudi Aramco's initial public offering (IPO) on the Riyadh's stock market, in Riyadh, Saudi Arabia, December 11, 2019. Image used for illustrative purpose.
By Staff Writer, Mubasher
Riyadh - The Saudi Stock Exchange (Tadawul) still enjoys high liquidity levels even after the COVID-19 crisis and remains one of the top 20 markets worldwide in terms of liquidity, Chairman of the Capital Market Authority (CMA), Mohammed ElKuwaiz, affirmed on Wednesday.
The Saudi CMA is the largest across the Middle East and makes up 70% of its market capitalisation, he added during the Saudi General Authority for Small and Medium Enterprises (Monshaat) session.
Over the past six months, the CMA faced the first crisis after foreign cash inflows were allowed. This has, however, reflected positively and was a stabilising factor for Tadawul.
He further noted that diversifying the kingdom’s investor base has achieved various of the CMA goals.
Meanwhile, the CEO of Tadawul, Khalid Abdullah Al Hussan, said that the stock market is a platform that promotes small and medium-sized enterprises (SMEs), expecting this year to be a good one when it comes to listings.
Even though COVID-19 crisis posed challenges to some entities, it has created opportunities for others operating in sectors such as technology and food sectors.
The Nomu-Parallel Market Capped Index (NomuC) supports firms and institutions that are unqualified to join the main market, Al Hussan remarked, adding that direct listing on it is one of the means firms seek to reach Tadawul.
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