Talal Al-Ajlan, CEO of NCFB
Many family businesses are expected to go public on the Saudi Stock Exchange (Tadawul) and Nomu Parallel Market under various sectors in the next three years, especially after facilitating direct listing on Nomu, Talal Al-Ajlan, chief executive officer of National Center for Family Businesses (NCFB), told Argaam in an exclusive.
NCFB deems flotations as an option for family businesses’ growth and sustainability, Al-Ajlan explained, affirming that the Capital Market Authority (CMA) has shown great flexibility to support family businesses, especially with respect to the waiting period for a planned share sale.
The Kingdom is home to more than 530,000 family businesses, representing over 70% of the private sector companies and employing the majority of individuals in that sector.
According to a study conducted by NCFB by the end of 2017 and in early 2018, family businesses contribute nearly SAR 800 billion to the national economy, Al-Ajlan noted.
Moreover, NCFB played a key role in coordinating with the Ministry of Commerce officials to share the views of family businesses and their board members, who account for many of these entities, on the new Companies Law.
The new Companies Law supports the sustainability and growth of family businesses through governance and the family charter, currently used in dispute settlements. This charter is also deemed as part of Companies Law and allows partners to refer to it and add it to the family business agreements, Al-Ajlan said.
These changes will reflect positively on the growth and sustainability of family businesses, he stated.
Comments
{{DisplayName}}
{{ElapsedTime}}