Saudi Gazette report

RIYADH — The chairman of the Capital Market Authority (CMA) Mohammed Al-Quwaiz highlighted the growing role of Saudi Arabia’s financial market in supporting small and medium-sized enterprises (SMEs), citing significant efforts in recent years to expand listing opportunities and diversify financing tools.

Speaking during the Enterprise Support Council held as part of the “Finance Week” organized by the General Authority for Small and Medium Enterprises (Monsha’at), Al-Quwaiz emphasized the impact of recent initiatives to empower entrepreneurs and business owners.

Al-Quwaiz stated that the Saudi market now provides nine financing channels for companies, most of which were developed in recent years. Among the most notable developments, he said, was the launch of the parallel market “Nomu,” which has facilitated wider market access for SMEs.

Currently, 30 of the companies listed in the Saudi financial market are SMEs, 14 of which have graduated from the parallel market to the main market after achieving business growth. This, he noted, reflects the success of the investment climate cultivated by the CMA.

“The general market index for growth has increased tenfold since launch, and the market value has surged to approximately SR60 billion — a 26-fold increase. Liquidity in the parallel market has grown eightfold, with trading values in 2024 reaching SR14 billion,” said Al-Quwaiz.

He added that the CMA has updated listing and offering requirements to align with international best practices. New tools, such as direct listings, have been introduced, while regulatory barriers have been reduced in collaboration with other government entities to ease the listing process for SMEs.

The CMA has also worked with partner institutions to implement over 14 incentives supporting listing and offering, including advantages related to government procurement, credit rating, and company evaluation.

Al-Quwaiz also noted the growing role of financial technology in the market, with sector revenues rising by 105% year-on-year in 2024.

He underscored the importance of credit rating and evaluation in enabling companies to secure financing, particularly through debt instruments, calling them vital components for long-term growth and market sustainability.