The Saudi Parallel Market .. from an upcoming experience to a billionaire platform in search of liquidity

Seven years ago, the Saudi Parallelle Mark ‘Grow’ was a shy experience, similar to an economic laboratory that includes only nine companies, with a market value of no more than 2.3 billion Riyals. The idea was clear: Create a parallel market that gives small and medium businesses the opportunity to obtain financing, without the complications imposed by the main market. However, many people did not expect to turn to what it is today: 106 businesses, with a market value of about 60 billion Riyals. But behind this rapid increase, the biggest question remains: “Growing” can exceed the biggest obstacle that impedes its way to become a more important investment platform: Poor liquidity? Is “growth” advanced with modest liquidity? Despite the enormous expansion of the number of listed companies, ‘growing’ still suffers from a major gap in liquidity compared to the main market (trade). The numbers show the image: The main market exceeds the parallel market in respect of the trading volume by 132. This paradox remains ‘growing’ in a difficult place, between an important platform for startups, and its limited attraction for investors looking for higher liquidity. Who leads change? Behind this big turnout is the name of Khaled Al -Hossan, CEO of the Tadawul group, which leads an ambitious strategy to increase the attractiveness of ‘growth’ and increase its openness to investors. In an interview with “Al -Sharq”, the horse revealed new organizational reviews aimed at expanding the basis of individual investors, emphasizing that the coming period will see the changes facilitating the access of this segment to the parallel market. Learn more: Khaled Al -hossan plans for the Saudi Market say Al -hossan: “We work to develop rehabilitation and listing mechanisms, and simplify the offering procedures, with the aim of making the market more mature and attracting investors and companies.” He also pointed out that “growth” will continue to open its doors to the double inclusion, after a successful experience with the Hong Kong market, in a step that reflects the ambition of “trading” to improve his regional and international presence. What is the priority of reviving ‘growth’: management or liquidity? Despite the remarkable expansion, the liquidity problem remains the most important challenge facing the parallel market. Here, Hisham Abu Jameeh, the founder of the “Financial Meki Technologies”, and Ibrahim al -Nuwaib, CEO of the “financial value” business, In the language of numbers, companies listed in ‘Growth’ form about 42% of total companies listed in the main market, but the volume of trade is still poor compared to the main market, as the latter’s trade value exceeds their peers in a ‘growth’ in enormous sizes. Abu Jameeh and Al -NewEBT believe that one of the main reasons for this difference is the flexibility of management regulations in the parallel market. Although these regulations give small businesses the opportunity to include lighter requirements, it may allow some investors to hesitate to pump their money into a market that still does not have the level of management and disclosure in the main market. Facts about the “Growth” Base: February 2017 Market Value: 60 Billion Riyals trading volume in “Growth” in 2024: 14 billion Riyals trading volume in the main market in 2024: 1.86 trillion Riyals (132 times greater than “growth”) The number of companies that are listed in ” Liquidity crisis is addressed? Hisham Abu Jameeh, the founder of the ‘Financial Manufacturing Techniques’, replies:’ If we ‘grow’ more attractive, we must expand the basis of the companies that qualify for inclusion, so that only public joint stock companies are not limited, but also include the closed stock companies, “to consider that this expansion will open the way for more businesses. Make ‘Grow’ more attractive Hisham Abu Jameeh Ased Ibrahim al -Nuwaibt, CEO of the “financial value” business, and sees that the solution is not just the number of listed businesses, but to improve the disclosure level, which can make investors more confidence in the market. accompanied by the increased level of disclosure and the procedures for the transfer of successful enterprises to facilitate the main market. “Maybe you are interested in: the platform” Connect Deposit “.. Direct Trade in Investment Funds without the complications of its managers, and the NOBBit acknowledges that the parallel market holds several advantages, the Businesses, even if the regulations are more flexible compared to the main market. The opening of the market for individuals is positive, provided the disclosure of Ibrahim al -Nuwaibt is improved, and it also contributes to separating the owners of direct management by forming management boards and public associations, which increases independence in decision making. In addition, the market provides the opportunity for investors to discover new businesses that have not been known before, and to help companies grow by attracting qualified human cadres. Where are you going to “grow”? As the development plans and the opening of the market continue to a larger part of investors, ‘Growth’ has great opportunities to continue growing. But the biggest question remains: Can the market find effective solutions to the liquidity dilemma? If the regulators can improve the disclosure level and provide incentives that can pump more investments, we can see the transformation of ‘growth’ into a more vibrant and sustainable platform. If the problem of poor trade continues, you can find the market yourself before a real challenge that limits the future pursuit. In any case, the parallel market appears in Saudi Arabia in front of a crossroads: either it becomes an important investment platform parallel to the most important markets, or to stay in the shade, as a secondary destination limits to a limited part of investors and businesses.