Listing Incentives
Listing incentives and obstacles that have been overcome
In line with Vision 2030 of the Kingdom of Saudi Arabia and the Financial Sector Development Program, one of the pillars is the development of an advanced capital market. Through a series of initiatives, the FSDP aims to boost and encourage private sector companies to list on Tadawul in cooperation with the Capital Market Authority and the relevant governmental entities.
Special incentives have been launched for listed companies on the Saudi Stock Exchange (Tadawul), and overcoming several obstacles facing companies in some sectors, which prevents, directly or indirectly, the listing of these companies in the Saudi stock market, under "Incentivize and encourage private companies to offer and list their shares on the stock market initiative". One of the Financial Sector Development Program (FSDP) initiatives.
These incentives are part of a series of several incentives will be announced in the future by various government authorities and ministries. The role of Tadawul is to provide the necessary support through continuous awareness of these incentives and the appropriate means in accessing them. In the table below is a full list of governmental entities with their listing incentives that have been launched so far for listed companies:
| Provider | Incentive |
|---|---|
| Saudi Industrial Development Fund | Increased loan limits granted to listed companies. For more information press here |
| Ministry of Investment | Facilitated approval process for listed companies to register foreign partners (joint ventures) For more information press here |
| Saudi Food & Drug Authority | Fast Track services at the Authority’s Business Support Center and advisory services including training courses on the electronic systems of the Authority. For more information press here |
| Ministry of Health |
For more information press here |
| Agricultural Development Fund |
Increased funding percentage, and increased credit services limits for each customer. For more information press here |
| General Authority of Zakat and Tax (GAZT) |
For more information press here |
| Saudi Customs |
Providing the listed companies the priority of applying to the Authorized Economic Operator Program. For more information press here |
| Ministry of Finance |
Preference in business and government procurement (under competition and government procurement rule) for listed companies in the Capital Market. For more information on the competition and government procurement rule press here For more information on the preference regulation press here |
| Projects Priority Office (PPO) |
A fast track to overcome the government challenges that might face the listed companies.
The Projects Priority Office which is one of The Private Sector Stimulation Office, dedicates a fast track to overcome the government challenges that might face the listed companies on the Capital Market by finding quick and exceptional solutions by communicating with an approved liaison officer in each governmental entity.
Office contact information:
E: mcisupport@sagia.gov.sa T: 0112035138 |
| Ministry of Human Resources and Social Development |
Inclusion of all listed companies on SAFWAH program For more information press here |
| Projects Support Fund |
Raising the funding limits for listed companies projects in the targeted sectors (health, education and real estate development "Mega Projects") For more information and to apply for the incentive please press here |
In cooperation with the competent government agencies, several obstacles faced by companies in some sectors which prevents directly or indirectly from listing these companies in the Saudi Stock Market have been overcome. In the table below the obstacles that have been overcome:
| Obstacle | Description of the obstacle that has been overcome |
|---|---|
| Limited ownership in pharmacies |
The Ministry of Health has removed the restriction from its regulation that prevents pharmacies from expanding, by allowing unlimited ownership of pharmacies and partnership in an unlimited number in accordance with the conditions and provisions stipulated in the Executive Regulations of Pharmaceutical Products and Facilities Law. For more information press here Beneficiary sectors: Pharmaceutical companies |
| Transforming a professional corporation into another form |
According to Article (17) in the Executive regulation of New Professional Corporations Law: now it is allowed for a professional company to transform into a joint stock company or any other company form mentioned in the third article of the New Professional Corporations Law according to the corporation’s law provisions except for their registration in the commercial register, and that after fulfilling the conditions and provisions stipulated in the regulations and law. For more information press here Beneficiary Sectors: Professional corporations |
For any inquiries or suggestions regarding listing incentives or obstacles, please fill out the contact form below and our team will contact you.