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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
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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.

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Saudi Arabia Makes History with Adoption of Riyadh Treaty on Design Law

Photo of the Riyadh Diplomatic Conference on the Design Law Treaty (Asharq Al-Awsat)
Photo of the Riyadh Diplomatic Conference on the Design Law Treaty (Asharq Al-Awsat)
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Saudi Arabia Makes History with Adoption of Riyadh Treaty on Design Law

Photo of the Riyadh Diplomatic Conference on the Design Law Treaty (Asharq Al-Awsat)
Photo of the Riyadh Diplomatic Conference on the Design Law Treaty (Asharq Al-Awsat)

Saudi Arabia has made history by uniting the 193 member states of the World Intellectual Property Organization (WIPO) to adopt the Riyadh Treaty on Design Law. This landmark achievement, realized after two decades of deliberation, underscores the Kingdom’s leadership in enhancing the global intellectual property system.

The announcement came at the conclusion of the Riyadh Diplomatic Conference on the Design Law Treaty, a rare event for WIPO, which has not held a diplomatic conference outside Geneva for more than a decade. It was also the first such event hosted in Saudi Arabia and the Middle East, representing the final stage of negotiations to establish an agreement aimed at simplifying and standardizing design protection procedures across member states.

Over the past two weeks, intensive discussions and negotiations among member states culminated in the adoption of the Riyadh Treaty, which commits signatory nations to a unified set of requirements for registering designs, ensuring consistent and streamlined procedures worldwide. The agreement is expected to have a significant positive impact on designers, enabling them to protect their creations more effectively and uniformly across international markets.

At a press conference held on Friday to mark the event’s conclusion, CEO of the Saudi Authority for Intellectual Property Abdulaziz Al-Suwailem highlighted the economic potential of the new protocol.

Responding to a question from Asharq Al-Awsat, Al-Suwailem noted the substantial contributions of young Saudi men and women in creative design. He explained that the agreement will enable their designs to be formally protected, allowing them to enter markets as valuable, tradable assets.

He also emphasized the symbolic importance of naming the convention the Riyadh Treaty, stating that it reflects Saudi Arabia’s growing influence as a bridge between cultures and a global center for innovative initiatives.

The treaty lays critical legal foundations to support designers and drive innovation worldwide, aligning with Saudi Arabia’s vision of promoting international collaboration in the creative industries and underscoring its leadership in building a sustainable future for innovators.

The agreement also advances global efforts to enhance creativity, protect intellectual property, and stimulate innovation on a broader scale.

This achievement further strengthens Saudi Arabia’s position as a global hub for groundbreaking initiatives, demonstrating its commitment to nurturing creativity, safeguarding designers’ rights, and driving the development of creative industries on an international scale.

The Riyadh Diplomatic Conference, held from November 11 to 22, was hosted by the Saudi Authority for Intellectual Property and attracted high-ranking officials and decision-makers from WIPO member states.