CMA Chairman Highlights That 30% Of Listed Companies In Saudi Arabia's Market Are SMEs

Mohammed ElKuwaiz, Chairman of the Capital Market Authority (CMA), highlighted significant efforts to promote public listings and expand financing for small and medium enterprises (SMEs) in Saudi Arabia. Speaking at the SME Support Council during "Finance Week," he noted that nine financing options are now available, most developed recently. The Nomu, Parallel Market, has been pivotal in enabling SMEs to enter the market.

ElKuwaiz revealed that SMEs constitute 30% of companies listed on the Saudi capital market. Fourteen companies have transitioned from Nomu to the main market after expanding operations, showcasing the CMA's effective investment environment. The Nomu Index grew tenfold by last year’s end, with market capitalization soaring 26 times to nearly SAR60 billion.

The liquidity in Nomu increased eightfold, with trading values reaching around SAR14 billion in 2024. The CMA has reviewed and improved listing requirements, aligning them with international standards. New tools like direct listings and reduced regulatory barriers have been introduced in collaboration with strategic partners to facilitate easier access for SMEs to capital markets.

More than 14 incentives have been introduced with various stakeholders to support company listings. These cover areas such as government procurement frameworks, credit ratings, and evaluation criteria for listed companies. ElKuwaiz also emphasized the growing role of financial technology (fintech) in the capital market, noting a 105% revenue increase compared to 2023.

The CMA chairman stressed the importance of credit ratings and evaluations in improving companies' access to financing through debt instruments. These are crucial for fostering growth and sustainability within the financial market. Such measures aim to enhance companies’ ability to secure funding effectively.

The initiatives undertaken by the CMA have significantly eased SMEs' entry into capital markets. By collaborating with strategic partners and introducing new tools, regulatory barriers have been minimized. This approach aligns with best international practices, ensuring a conducive environment for business growth.

With inputs from SPA