Business & Money | Saturday 28 July, 2018 1:11 am |

The Saudi Stock Exchange (Tadawul)today launched a comprehensive toolkit based on global best practice approaches to investor relations to promote greater transparency and assist companies listed on the Saudi Stock Exchange in enhancing the quality of their investor relations. 

As the first guide of its kind to be published by a stock exchange in the region,it confirms Tadawul’s unequivocal focus on aligning its regulatory framework and market standards with those of the most progressive exchanges around the globe.

The Investor Relations Toolkit provides information, advice and support to all companies either listed, or considering listing, on Tadawul. In addition to laying out the basics, it contains practical tips on how to develop a world-class investor relations program, along with a summary of the most important regulatory principles and an analysis of how to measure the value of investor relations. 

The toolkit is a reference guide for companies of all sizes regardless of the sector in which they operate and it is expected to have a positive impact on the quality of investor relations strategies and tactics, which will result in boosting local and foreign investor confidence. 

Mohammed Sulaiman Al Rumaih, Chief of Markets atTadawul, said: “The launch of the toolkit is another step towards fostering good investor relations practices in the Saudi market while enhancing governance and transparency among companies in the Kingdom, hence building an advanced and open market for the world.”

"Boosting corporate governance will raise investor confidence in the Saudi market and strengthen its position among international financial markets, particularly following its inclusion in two of the world's most important indices."

In 2017, Tadawul signed a Memorandum of Understanding (MOU) with the Middle East Investor Relations Association (MEIRA) to promote best practices in investor relations and raise the level of transparency at Saudi companies.

Commenting on the launch of the toolkit, Rayan Ibrahim Al Karawi, Chairman of the Saudi Chapter of MEIRA, commented: “As an association that is dedicated to promoting investor relations in the region, we are extremely pleased to see Tadawul take this significant step. Enabling listed companies to go beyond the regulatory requirements and raise the bar in their respective market or sector is an important driving factor in the development of our capital markets. 

“Saudi Arabia’s recent inclusion in the MSCI Emerging Markets and the FTSE Russell Indices, the leading global benchmarks, indicates growing investor confidence and interest in the Saudi market. We believe this toolkit lays the ground for a monumental change through encouraging higher-quality investor relations. We at MEIRA are committed to supporting this process in every way we can.”

Home to 195 Saudi companies across a diversified portfolio of sectors with a combined market capitalization of more than $523 billion, the Saudi Stock Exchange currently ranks 7thamong the largest emerging market stock market worldwide. 

The toolkit, which will be updated on a regular basis, is available for download here