Achieving Saudi Arabia's Delivery Plan 2020, as part of itswider Saudi Vision 2030 Realisation Program, requires consolidation of theKingdom's regulatory laws, investment listing rules, and corporate governance.This was the view during ICAEW's Corporate Finance Faculty (CFF)roundtable on corporate fundraising and its challenges and opportunities in theKingdom.
Panellists and invited guests discussed the outlook forventure capital under the current economic conditions in Saudi Arabia. Thespeakers also highlighted the limited accessibility to corporate finance in theKingdom, and how it varies between small, medium and large organisations.
Speakers advised private companies in the Kingdom to hireboth legal and financial advisors, before going public – to fulfil the requirementsof the Capital Market Authority. Once public, speakers mentioned thatinvestment bankers play a crucial role in marketing the company to theinvestment community, both regionally and globally. Such marketing strategiesare often done through various initiatives, such as roadshows and conferences,to generate interest.
Panellists included Hani Enaya, Partner, Saudi TechnologyVentures; Omar Jahidi, Director, Investment Banking Advisory, HSBC SaudiArabia; Khlood Aldukhail, Managing Director, Aldukheil Financial Group; and AmrSager, Founder, Sager Investor Relations. The event was moderated by AdnanZakariya, Managing Director, Protiviti.
Panellists applauded the steps that the Kingdom's capitalmarket has taken in recent years, to approve the listing rules of foreigncompanies and to elevate corporate governance in Saudi Arabia.
Michael Armstrong, FCA and ICAEW Regional Director for theMiddle East, Africa and South Asia (MEASA), said: "Vision 2030 sets out ablueprint for the future of Saudi Arabia. We are pleased to see the necessaryreforms and the progress the Kingdom has made in improving its financialbusiness landscape; such as the implementation of its 2020 privatisationDelivery Plan. The program aims to strengthen competition, raise the quality ofservices and economic development, improve the business environment, and removeobstacles that prevent the private sector from playing a more significant rolein the Kingdom's development.
Through such game-changing initiatives supporting privatecompanies, we will see an increase in Foreign Direct Investment (FDI) whichwill lead to greater economic sustainability and long-term benefits for theeconomy."
Speakers mentioned that although more startups are being setup in the Kingdom, there is limited accessibility to corporate finance forcompanies in the investment community. They also mentioned that there are a lotof early-stage investors in the region – but not enough "series b" investorsand beyond.
