His Excellency the Chairman of the Capital Market Authority (CMA), Mr. Mohammed Elkuwaiz, affirmed that recent years have witnessed substantial efforts to encourage companies to go public and list on the Saudi capital market, while also expanding financing options for small and medium enterprises (SMEs).
Speaking at the SME Support Council during Funding Week, organized by the Small and Medium Enterprises General Authority “Monsha’at” to highlight the available financing tools and their role in empowering entrepreneurs and SME owners, Elkuwaiz stated that nine financing sources are currently available to companies in the Saudi market, most of which have been developed in recent years. He emphasized that the launch of the Nomu Parallel Market was one of the most impactful enablers in facilitating market entry for a growing number of companies.
Elkuwaiz revealed that 30% of listed companies in the Saudi capital market are SMEs. After expanding their operations, 14 such companies successfully transitioned from Nomu to the main market, reflecting the effectiveness of the investment environment developed by the CMA.
He noted that the Nomu index has grown tenfold since its inception through the end of last year, with market capitalization rising 26 times to nearly SAR 60 billion. Liquidity has also increased eightfold, with trading values in Nomu reaching approximately SAR 14 billion in 2024. He pointed out that the CMA has reviewed all listing requirements, aligning them with the best international practices, while introducing new tools such as direct listings and reducing regulatory barriers in cooperation with partner entities. These initiatives have made it easier for SMEs to access the capital market.
His Excellency further noted that the CMA has worked with several entities to introduce more than 14 incentives to support listings, covering areas such as government procurement systems, credit ratings, and the evaluation of listed companies.
He also highlighted the growing role of financial technology (fintech) in the capital market, noting that the sector’s revenues doubled, registering a 105% increase in one year compared to 2023. He underscored the importance of credit rating and evaluation in enhancing companies’ ability to access financing, especially through debt instruments, which are essential for fostering growth and sustainability in the capital market.