JEDDAH, 13 May 2006 — Saudi Arabia yesterday appointed Abdul Rahman Al-Tuwaijeri, secretary-general of the Supreme Economic Council (SEC), as acting chief of the Capital Market Authority (CMA), replacing Jammaz Al-Suhaimi.
“Jammaz Al-Suhaimi, head of the CMA, has been removed from his post. Abdul Rahman ibn Abdul Aziz Al-Tuwaijeri, secretary-general of SEC, has been given the charge to carry out the duties of CMA chief,” said a decree issued by Custodian of the Two Holy Mosques King Abdullah.
Suhaimi’s sacking follows the crash of Saudi stock market, which lost 39.88 percent this year after closing at 16,712.64 on Dec. 31, 2005. The Tadawul All-Share Index (TASI) shed 21.21 percent or 2,704.56 points last week, the highest weekly decline in the stock exchange’s history, closing on Thursday at 10,046.83 points. TASI reached an all-time high of 20,634.86 points on Feb. 25, 2006.
Financial analysts and stock dealers were expecting a leadership change to boost the market. Speaking to Arab News, Faisal H. Alsayrafi, president and CEO of Financial Transaction House, said: “Changing the leadership of the CMA could be due to many factors. This is a good step in order to bring trust into the market especially for small investors. The fluctuation of shares in the stock market recently has created a lack of trust among investors.”
Alsayrafi added: “Although, there is no direct link between the stock market and the CMA, hopefully this change will restore confidence in the market and eventually the market will correct itself in the medium to long term.”
Al-Tuwaijeri, a seasoned economist, has proved his expertise in his capacity as secretary-general of the SEC, an apex decision-making body headed by King Abdullah. He said he would work to rejuvenate the market by infusing confidence among investors. He emphasized the strength of the Saudi economy.
The SEC had previously taken a series of steps to boost the Saudi bourse, the largest in the Arab world in terms of capitalization. It allowed expatriate workers in the Kingdom to invest directly in the stock market and joint stock companies to split their shares five for one. The decision to change the CMA chief comes after calls by financial experts for intervention by higher authorities to save the market.
