The official launch of the parallel market (Nomw) in February

​

    A meeting of (Tadawul) and the financial  Committee of the market for small and medium projects yesterday
   
    The approval of the inclusion of five companies out of 77 companies submitted for inclusion

            The Inclusions manager of the financial market company " Tadawul " Naif Al Athel has revealed the intention to attract more Gulf and international companies in the parallel market, as well as the local companies, he pointed that the work is going on to create a big parallel market in the Gulf, in a move to become one of the  biggest platforms regionally and internationally.
    He explained in the meeting titled (Nomw- the parallel market) which was organized by Asharqia Chamber in cooperation with the Stock Exchange (Tadawul) and the Capital Market Committee and the General Authority for small and medium institutions in the Chamber on Monday, January 23, 2017, to talk about the institutions of the (parallel market), "the official launch of the market will be 26 next February, he said that ( Tadawul) has carried out several awareness initiatives for the definition of the market and its  goals, including visiting 315 companies and 94 financial adviser, representing 75% of the number of financial advisers in the Kingdom, and more than 20 workshop attended by 1,500 people.
    He  explained that the parallel market has so far received about 77  letter for listing, and approved the inclusion of only five companies, stressing that the chance is still open to companies willing to be listed.
    Unit Director for the Financial Market  committee Talal Al Shimaisi said that the Saudi market will be divided into the main market which is the current stock market, added to it the parallel market (Nomw), a market characterized by the requirements of the inclusion of the least requirements, it is considered an alternative investment platform to companies wishing to be listed, noting that it is only for qualified investors.
    Regarding the most important differences between the main and parallel market said that the minimum market value in the main market is of 100 million riyals, while in the parallel market is of 10 million riyals, and the number of participants in the company main market must be 200 participant, while that does not require more than 50 contributor to the parallel market if the expected market value of all  participants no more than 40 million riyals, and less than 35 million if the market value is less than that,
    He said the governance requirements will be consulting for companies listed in the parallel market similar to the companies not included in the market, so as not to compel it to apply to the list of governance applicable to listed companies  in the main market.
    He explained that the process of classifying the qualified to work in the  investing market of the tasks of the financial advisor, and trading in the market in this market will be the investment account in the main market.
    For his part, Director of the Department of Information Technology  in the General committee for small and medium  projects Ahmed Al Abaishi, that the approved small property definition depends on the standards of (employment and revenues), as the micro institution is that with a number of labor between (1 5 workers, or an annual income of not more than three million SR), while the small, which includes among (6 -49), or be more than 3 annual income of 40 million riyals, while the medium company that its number ranging between 5 and 249 workers, or revenues more than 40 SR 200 million, and more than all that they are big organizations. In the absence of one standard the other standard is approved, he pointed that the institution,  with employment of 250 full time employees is big, while the medium with a number of employees of 249 employees. He pointed that small and medium institutions is more than 99% of the total establishments in the private sector, and  big institutions   do not exceed 0.3% and we are seeking to that the micro institutions grow to medium and   big institutions standard.
    He explained that the ratio of the contribution of small and medium institutions sector still at 21%, while the  international average of about 46%, and this percentage to reach 25% with an increase in  gross production by $ 1.1 trillion riyals, also these institutions will  include employment  platform and an attraction for the national workforce, noting that the main  goal of the Committee  at the present time is to rise from 20% to 35% in the total  gross production according to the 2030 vision.