Saudi Stock Exchange to Stimulate Sustainability for Family Businesses

Family companies are invited to take advantage of the Saudi financial markets for their sustainability, Asharq Al-Awsat
Family companies are invited to take advantage of the Saudi financial markets for their sustainability, Asharq Al-Awsat
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Saudi Stock Exchange to Stimulate Sustainability for Family Businesses

Family companies are invited to take advantage of the Saudi financial markets for their sustainability, Asharq Al-Awsat
Family companies are invited to take advantage of the Saudi financial markets for their sustainability, Asharq Al-Awsat

The Capital Market Authority of Saudi Arabia (CMA) and Tadawul are mobilizing to increase the momentum of stimulating the Saudi private sector towards the transformation into joint-stock companies and to benefit from the financial markets in the country, especially the parallel market, Nomu.

This is coupled with indicators of economic recovery in the aftermath of the coronavirus lockdown and its lifting.

The past few days have witnessed active mobility from the CMA and Tadawul to raise awareness in the private sector.

They set out to encourage small and medium-sized companies and invited entrepreneurs to take advantage of financial market financing.

They invited family companies to seize the opportunity of the financial market to gain sustainability through the Tadawul market and Nomu, especially with the incentives and procedural facilities that are being provided.

CMA Chairman Mohammed El-Kuwaiz, in a meeting held a few days ago, said that family companies are invited to gain sustainability through the Saudi financial market which has recorded tangible progress that contributes in practical terms to adding an effective financing channel to develop businesses for companies.

El- Kuwaiz pointed out that 30% of family businesses avoid public offering due to a fear of losing control of the company.

But studies prove that more firmness and steadfastness are acquired after the offering in front of challenges. El- Kuwaiz pointed out that the dominant percentage of shares remains for the original owners.

He also underlined the relationship between disclosure and corporate governance, risk reduction related to family business management and the low cost of financing after listing, explaining that CMA regulations place clear considerations for the relationship between shareholders and founders of family businesses.



Lebanon Bonds Rally to Fresh Two-year High on Ceasefire Hopes

A man counts Lebanese pounds at a currency exchange shop in Beirut, Lebanon October 1, 2020. REUTERS/Mohamed Azakir
A man counts Lebanese pounds at a currency exchange shop in Beirut, Lebanon October 1, 2020. REUTERS/Mohamed Azakir
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Lebanon Bonds Rally to Fresh Two-year High on Ceasefire Hopes

A man counts Lebanese pounds at a currency exchange shop in Beirut, Lebanon October 1, 2020. REUTERS/Mohamed Azakir
A man counts Lebanese pounds at a currency exchange shop in Beirut, Lebanon October 1, 2020. REUTERS/Mohamed Azakir

Lebanon's deeply distressed sovereign dollar bonds hit a fresh two-year high on Tuesday as investors bet that a potential ceasefire with Israel could improve the country's prospects.

The bonds, which are still trading below 10 cents on the dollar, have gained more than 3% this week. The 2031 maturity was biding at 9.3 cents on the dollar, its highest since May 2022, according to Reuters.

"Some investors are mulling if it is a right time to buy, since a ceasefire is the first step needed to at some point in time restructure bonds," said Bruno Gennari, emerging markets strategist with KNG Securities International.

Israel's cabinet is expected to convene on Tuesday to discuss, and likely approve, a US plan for a ceasefire with the Iran-backed Hezbollah, a senior Israeli official said.

Israeli airstrikes, which continued on Tuesday, have decimated Lebanon's infrastructure and killed thousands.

But the counterintuitive rally, the second since Israel began bombing the country in September, was driven by bets that the deal could jolt Lebanon's fractured political system and revive efforts to pull the country out of default.