National Transformation Plan to boost investor confidence

01/05/2016 05:11 AST

Saudi Arabia will become the region’s most active market for IPOs and private equity investment if government plans to boost the economy are successful, according to experts set to speak at Euromoney Saudi Arabia Conference 2016 in May.

Recent projections by the Capital Market Authority (CMA) suggest that the Tadawul All Share Index will grow to 250 listed companies over the next seven years, up from its current total of 170.

An increase in the volume of IPOs — and particularly offerings such as the mooted listing of a stake in oil major Saudi Aramco — is likely to drive significant growth, in addition to the launch of a secondary market for SMEs.

Delegates will be able to learn more about the development strategy from an exclusive on-stage interview with Mohammed Al-Jadaan, chairman of the CMA, during the first day of the Euromoney Saudi Arabia Conference.

In addition, a special panel discussion will examine national and international perspectives on the rise of private equity in the Kingdom.

Senior executives from Derayah Financial, Almarai, QNB Capital LLC, NCB Capital and Albilad Capital will take part, reviewing the progress made during the first year since the passing of new laws enabling qualified foreign investors (QFIs) to invest in listed shares.

As part of the efforts to boost the exchange, Saudi Arabia is also looking to increase transparency and improve communication with investors, recently announcing plans to ask all companies trading on the exchange to submit ownership disclosures for senior executives. Tariq Al-Sudairy, MD and CEO of Jadwa Investment, who will speak on the Saudi Financial Roundtable at the conference, said: “Despite some challenging recent quarters, we see positive signs ahead for the stock market.”

The announcement of the National Transformation Plan will reassure investors of the government’s commitment toward structural economic reform, helping the private sector to make more informed and confident investment decisions, said the CEO.

“We view this year’s Euromoney Saudi Arabia Conference as an important opportunity to discuss the transformative changes that are happening in the Kingdom,” he said. The 2016 Euromoney Saudi Arabia Conference is co-hosted with the Ministry of Finance and takes place at the Al Faisaliah Hotel in Riyadh on May 3-4.

Other major speakers from the Kingdom include Finance Minister Ibrahim Al-Assaf, Economy and Planning Minister Adel M. Fakeih, Commerce and Industry Minister Tawfiq Al-Rabiah and Labor Minister Mufarrej Al-Haqbani.

Arab News