RIYADH, 21 February 2006 — A national committee for joint stock companies has been set up at the Council of Saudi Chambers of Commerce and Industry (CSCCI). The committee will safeguard the interests of 77 listed companies which together represent a market capitalization of over SR2.8 trillion — the biggest in the Middle East.
Some 50 senior executives of the joint stock companies in the Kingdom as well as those intending to go public attended the preliminary meeting of the committee, which will also lobby on their behalf with various ministries and government agencies.
“The setting up of the committee is a major development vis-à-vis the national economy, which has a GDP of $307 billion. It will play an important role in the context of the economic reforms and in enabling the joint stock companies to face regional and international competition arising out of the Kingdom’s accession to the World Trade Organization (WTO),” Dr. Fahd Al-Sultan, secretary general of CSCCI, told Arab News.
At yesterday’s meeting, Abdullah Al-Zaid, chairman of Taiba Investment Co. (Medina), was elected president of the national committee, with Mohammed Al-Ammari, chairman, National Food Products Co., and Abdullah M. Al-Fayez, chief executive officer, Saudi Public Transport Co. (SAPTCO), declared vice-presidents of the 16-member committee.
The constitution of the national committee for joint stock companies assumes significance in the context of the stock market boom, especially as 56 family-owned enterprises have applied to the Ministry of Commerce and Industry for conversion into joint stock companies. The availability of huge liquidity in the market, coupled with limited investment outlets, created a situation recently in which 50,000 Saudi shareholders flocked to Qatar for Al-Rayyan Bank’s $1.1 billion IPO.
Speaking to Arab News after the meeting, Al-Fayez said the national committee seeks to protect the interests of both joint stock and private limited companies planning to float IPO (initial public offering). It will also work with them closely in facing the challenges stemming from the WTO accession.