26/08/2013
With the participation of experts and officials
In September the Chamber and ' Tadawel ' signing an agreement to organize the Forum (family business turned into joint stock companies)
The East Chamber and the Saudi stock exchange (Tadawul) signed a memorandum of understanding to organize joint efforts for a junction (family business turned into joint stock companies) held on 11 September 2013 in the Chamber Headquarters on Dammam Khobar highway under the auspices of the Chairman of the capital market authority his Excellency Mohammed bin Abdul Malik Al-Sheikh. The agreement signed by Monday (26 January 2013) identified functions of each party in the regulatory process, the Secretary General of the Chamber Abdul Rahman bin Abdullah alwabel, and Director General of the monetary circulation on the Saudi stock exchange (Tadawul) Waleed Al bawardi, the parties have agreed on all the details of the scientific and technical aspects and proceedingfromboth sidesofallthe issues that concernthenationaleconomyingeneral,including the issue ofthe transition fromindividualorfamilycompaniestopublicjointstockcompanies.
Commenting on the agreement, said Secretary General of the Chamber Abdul Rahman bin Abdullah Alwabel the forum undertaken in collaboration between the Chamber and the Saudi stock exchange (Tadawul) review the highlighted positive results of the ' family business turned into joint stock companies ' role in maintaining the continuity of the family company, and the continuing success ,growth and development, so the forum within its three sessions highlights the experiences of a number of family businesses and stories of transformation into joint stock companies, and stands on some of the challenges that have been overtaken by these companies In the process of transformation, and the resulting effects on performance, expansion, profitability and creativity.
Alwabel said that participants will view the restrictions for the transition from family business to public, and mechanisms for implementation, and the expected economic impacts and implications of this transformation. It will address the topic of governance in family business, through which positive corporate performance, qualify for conversion into joint stock companies, owned by a large number of shareholders, rather than limited to the ownership of one family. He concluded that this forum brought awareness message to all businessmen, owners of family businesses, and all those concerned to respect the importance of economic transformation in these companies, and the technical and legal aspects, through knowledge, ways and means of transformation, the local laws and prior experiences of the family companies listed on the Saudi stock market, as well as to make them aware of the challenges that might face them in this way, despite the many positives, not least because of the expansion of businesses and increase the area of its activity.
Alwabel described the cooperation between the Chamber and the CMA as a positive and continuous cooperation, expressing his hope for more programs and events, serving the economic sectors in various fields. In the same context, the Director-General of the Department of monetary circulation on the Saudi stock exchange (Tadawul) Waleed Al bawardi stressed that' trading ' priority is to increase awareness of all stakeholders of the role and services provided by the financial market for all companies, and highlight the extensive positive dimensions, variety and quality of these services. Noting that the insertions in the financial market contributes to the strengthening of economic activity, by providing an opportunity for companies, which have difficulty in financing from partners with traditional ways of providing liquidity requirements to obtain financing through the capital market, which contributes significantly to strengthening local and international expansion of companies itself by broadening participation in the ownership of these companies and through what is known as ' IPO ' and through the subscription process.
Al bawardi said that there are a number of benefits that accrue to companies from becoming public, one of them is the increased media interest in the company, enhance its ability to attract investors and new clients, creating an expansive investment opportunities and new markets coverage, continuity and giving a fair value for the company through stock investors to the stock price. Finally Al bawardi, thanked the Chamber for its commitment to cooperate with financial market awareness projects designed to achieve the desired objectives.
