CMA Chairman: 30% of Listed Companies in Saudi Market SMEs

Chairman of the Capital Market Authority (CMA) 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 “Finance Week,” organized by the Small and Medium Enterprises General Authority (Monsha’at), ElKuwaiz stated that nine financing options 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 SMEs.
 According to a press release issued by the CMA, ElKuwaiz revealed that 30% of listed companies in the Saudi capital market are SMEs. After expanding their operations, 14 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 the market capitalization rising 26 times to nearly SAR60 billion. Liquidity has also increased eightfold, with trading values in Nomu reaching approximately SAR14 billion in 2024, pointing out that the CMA has reviewed and enhanced 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 strategic partners. These initiatives have made it easier for SMEs to access capital markets.
 ElKuwaiz further noted that more than 14 incentives have been introduced in collaboration with various stakeholders to support listings, covering areas such as government procurement frameworks, credit ratings, and evaluation criteria for listed companies.
 He also highlighted the growing role of financial technology (fintech) in the capital market, noting that the sector’s revenue doubled, registering a 105% increase compared to 2023. The CMA chairman 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 financial market.