JEDDAH, 17 June 2003 — The Council of Ministers yesterday endorsed the capital market law, opened up the Kingdom’s domestic skyways for national aviation companies and approved the announcement of government contracts.
The capital market law, a milestone for economic liberalization in the Kingdom, will provide a legal and regulatory framework for all capital-related activity, such as trading in securities, and increase transparency and accountability as well as attract foreign investment.
The Cabinet meeting, chaired by Custodian of the Two Holy Mosques King Fahd, took these major decisions on recommendation of the Supreme Economic Council, the Kingdom’s highest economic decision-making body.
Addressing the Cabinet, King Fahd commended the messages sent by people from various parts of the Kingdom condemning the Riyadh bombings and expressing their solidarity and support for the Saudi leadership.
The Cabinet highlighted the importance of the national forum for intellectual dialogue, which opened its sessions in Riyadh on Sunday.
In his message to the forum, Crown Prince Abdullah, deputy premier and commander of the National Guard, urged the intellectuals to confront the challenges facing the country’s security and unity.
“The main emphasis should be on removing differences by good counsel and wisdom, and making efforts to keep differences from turning into discords and dissensions,” the crown prince said in his message.
Prince Abdullah urged the citizens to shun disunity, dissension and prejudice, whether emanating from tribalism, regionalism, and ideological differences or from any form of extremism.
“The mischief that has occurred in the Kingdom is a war which must be confronted by all means. These criminals have dared to carry out their plans in the holy cities of Makkah and Madinah,” Prince Abdullah said and commended the security forces for foiling the terrorists’ bid to carry out a major attack.
Culture and Information Minister Dr. Fouad Al-Farsy said the king briefed the ministers on the outcome of his talks with Pakistani President Pervez Musharraf, saying the talks focused on the latest developments in the Indian subcontinent and the Arab and Islamic world as well as bilateral ties.
The Cabinet denounced Israel’s aggressive practices, terrorist attacks and assassinations against Palestinians, adding that these Israeli aggressions would obstruct implementation of the Middle East road map. “The meeting called upon the international community to put an end to Israeli terror and inhumanity,” Al-Farsy said.
The Cabinet authorized the second deputy premier and minister of defense and aviation to sign a memorandum of understanding with South Africa for military cooperation.
Referring to the capital market law, the minister said all rights and assets of the current stock exchange and the Saudi Company for Stock Registration would be transferred to the new capital market authority and capital market.
The Cabinet also announced that the board of the new capital market authority, which will be directly linked to the prime minister, would be set up within three months after the publication of the law in the official gazette.
A new stock market named the Saudi Capital Market will be established in the form of a joint-stock company to manage and facilitate stock exchange activities and set out and execute the criteria for middlemen and agents.
The Saudi bourse, the most capitalized in the Arab world at more than $128 billion, reacted positively by reaching a record high. At close yesterday, the Tadawul All-Shares Index surged to 3,644.29 points, up 0.8 percent on Sunday’s closing. Despite the Kingdom’s huge economic base, the stock market has so far been limited to a small number of dealers as the overwhelming majority of stocks are concentrated in the hands of the government and business families.
