Many family businesses are expected to go public on the Saudi Stock Exchange (Tadawul) and Nomu Parallel Market under various sectors in the next three years, especially after facilitating direct listing on Nomu, Talal Al-Ajlan, CEO of National Center for Family Businesses (NCFB), told Argaam in an exclusive.
NCFB deems flotations as an option for family businesses’ growth and sustainability, Al-Ajlan said, affirming that the Capital Market Authority (CMA) has shown great flexibility to support family businesses, especially with respect to the waiting period for a planned share sale.
The Kingdom is home to more than 530,000 family businesses, representing over 70 percent of the private sector companies and employing most of individuals in that sector.
According to a study conducted by NCFB by the end of 2017 and in early 2018, family businesses contribute nearly SR800 billion ($213 billion) to the national economy, Al-Ajlan noted.
NCFB played a key role in coordinating with the Ministry of Commerce officials to share the views of family businesses and their board members on the new Companies Law.
The new Companies Law supports the sustainability and growth of family businesses through governance and the family charter, currently used in dispute settlements. This charter is also deemed as part of Companies Law and allows partners to refer to it and add it to the family business agreements, Al-Ajlan said.
These changes will reflect positively on the growth and sustainability of family businesses, he added