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Saudi Market Witnesses 7% Boom in 2019

An investor monitors a screen displaying stock information at the Saudi Stock Exchange in Riyadh, Saudi Arabia. (Reuters)
An investor monitors a screen displaying stock information at the Saudi Stock Exchange in Riyadh, Saudi Arabia. (Reuters)
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Saudi Market Witnesses 7% Boom in 2019

An investor monitors a screen displaying stock information at the Saudi Stock Exchange in Riyadh, Saudi Arabia. (Reuters)
An investor monitors a screen displaying stock information at the Saudi Stock Exchange in Riyadh, Saudi Arabia. (Reuters)

The Saudi stock exchange total gains in 2019 amounted to 7 percent, especially with the Aramco IPO and traders rushing to buy its shares.

The Saudi stock index closed at levels nearing 8,400 points at the end of 2019 trading, and managed during recent transactions to establish important technical support points, which is required for a positive performance of most of the shares of traded companies.

Aramco stock closed at $9.38, the level which the company's share managed to maintain since the listing was first completed. It also represents a 10 percent increase in the value of the stock since the listing.

The Saudi stock index ended its last session in 2019, with a 0.5 percent increase, to close at 8,389 points, amid trades totaling about $1.06 billion, bringing the gains of the Saudi market since the beginning of 2019 to about 563 points, or 7.19 percent, compared to the end of 2018.

Meanwhile, the Saudi Capital Market Authority (CMA) announced its board’s decision to force listed companies to continue to use the cost model to measure property and investment property in the financial statements prepared for financial periods within fiscal years, which start before 2022.

The Authority added in a statement Tuesday that the listed companies were allowed to use the fair value or revaluation model to measure property and investment properties for the financial periods of FY beginning in 2022 or after it.

The statement explained that any listed company that chooses to use the fair value model or the revaluation model to measure property, and investment property must comply receive the board of directors’ approval for the accounting policy to adopt the fair value model or the revaluation model based on the audit committee’s recommendation.

It also indicated that each property, or investment property shall be valued by at least two valuers when preparing the annual financial statements and when using the fair value model or the revaluation model for the first time.

CMA asserted that valuers must be appointed by a resolution from the board of directors based on the audit committee’s recommendation, adding that the appointed valuer must hold a fellowship designation with the Saudi Authority for Accredited Valuers.

“The audit committee shall monitor and oversee the valuation process and its results, and shall report to the board of directors any findings or issues,” read the statement.

In addition, the Authority stressed that any material gains or losses arising from a change in the fair value of investment properties shall be disclosed within the announcement of the interim and the annual financial results.

CMA noted that its decision is based on its role in regulating and monitoring the works and activities of parties subject to its monitoring, supervision, and role in regulating and monitoring the full disclosures of information regarding financial securities and their issuers.

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FAO Aims for Key Outcomes at COP16 in Saudi Arabia

Preparations in the Saudi capital ahead of hosting the COP16 conference on combating desertification (from the “COP16” page on the X platform)
Preparations in the Saudi capital ahead of hosting the COP16 conference on combating desertification (from the “COP16” page on the X platform)
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FAO Aims for Key Outcomes at COP16 in Saudi Arabia

Preparations in the Saudi capital ahead of hosting the COP16 conference on combating desertification (from the “COP16” page on the X platform)
Preparations in the Saudi capital ahead of hosting the COP16 conference on combating desertification (from the “COP16” page on the X platform)

Dr. Abdul Hakim Elwaer, Assistant Director-General of the Food and Agriculture Organization (FAO), stated that the organization will take an active role at COP16, the UN conference on combating desertification, scheduled to take place in Saudi Arabia in early December.

In remarks to Asharq Al-Awsat, he expressed confidence that the conference—the first of its kind in the Middle East—would produce significant outcomes.

Elwaer’s comments came during a roundtable organized by FAO’s regional office in Cairo, attended by a select group of media representatives. The session focused on FAO’s participation in the upcoming conference and the importance of the Rio Trio —the integrated framework of the three major UN conventions addressing climate change, biodiversity conservation, and desertification.

Fida Haddad, FAO’s Program Officer for Land Rehabilitation and Climate Change, highlighted the interconnectedness of the three conventions and noted that COP16 would place a strong emphasis on land and water rehabilitation and their sustainable management.

Haddad pointed out that approximately 90% of the Middle East is affected by arid conditions. Despite this, local communities and Arab governments have made notable progress in addressing desertification and drought. She also announced that, for the first time, FAO has successfully placed food systems on the COP16 agenda, enabling discussions on how land rehabilitation can enhance food supply chains and systems.

Elwaer underscored FAO’s central role in achieving the second Sustainable Development Goal (SDG): eradicating hunger. He emphasized that FAO actively engages in the UN conventions on climate change, biodiversity, and desertification, which collectively contribute to this mission.

FAO’s focus, according to Elwaer, is on transforming food and agricultural systems to become more inclusive, efficient, and sustainable, aiming for better production, nutrition, and livelihoods. He highlighted the organization’s success in integrating these priorities into the agendas of the three conventions and collaborating with host countries on joint initiatives.

He further noted that Saudi Arabia’s hosting of COP16 is particularly significant for the region, which faces pressing challenges such as water scarcity, desertification, and food insecurity. The conference presents an opportunity for Middle Eastern nations to highlight these issues, explore solutions, and ensure their inclusion in global environmental discussions, not only at this event but in future COP sessions, he underlined.

Elwaer emphasized the growing global attention on desertification, as it is now impacting regions previously unaffected, such as southern Europe and parts of Latin America. These areas are witnessing alarming declines in arable land and forests, prompting them to seek lessons from the Arab world, which has developed resilience strategies to combat desertification over centuries.

FAO will have a strong presence at COP16, with two dedicated pavilions—one in the Blue Zone for official delegations and another in the Green Zone to engage civil society and conference participants, he said.

He added that in collaboration with Saudi Arabia and the UN, FAO will lead coordination on Food Day and Governance Day, scheduled for December 5 and 6, respectively. The organization will also participate in other specialized sessions throughout the conference.