Saudi Arabia's stock market regulator on Thursday issued draft rules for a new secondary market, part of efforts to boost the role of small and medium enterprises in the economy. Only Saudi joint stock companies are eligible and must have been operating for one year, said the proposed rules issued by the Capital Market Authority.
There must also be at least 50 public shareholders, say the rules, which are open for public comment until November 14. Under the kingdom's wide-ranging Vision 2030 plan to diversify the oil-dependent economy, small and medium sized firms are to contribute 35 percent of gross domestic product, up from 20 percent.
The kingdom's main market, the Tadawul All-Shares Index (TASI), has a capitalisation of about $400 billion. Last year the TASI for the first time became open to direct investment by qualified foreigners. Under Vision 2030, the kingdom plans to float at least five percent of state oil company Saudi Aramco on the TASI, in the world's largest initial public offering.
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