Trilateral Memorandum of Understanding signed during the Saudi Capital Market Forum 2023
Riyadh, 13 February 2023: The Ministry of Economy and Planning, the Capital Market Authority, and the Saudi Exchange Company have signed a Memorandum of Understanding (MoU) at the second annual Saudi Capital Market Forum, held under the patronage of H.E. Mohammed El-Kuwaiz, the Chairman of the Capital Market Authority.
The agreement brings together shared objectives among the three entities to drive the sustainable development and long-term success of Saudi Arabia’s capital market, as well as advance ESG industry standards. As part of the MoU, a dedicated coordination team will be established to meet regularly and collaborate across three main areas:
1. The development of a Saudi ESG taxonomy
2. The development of a national ESG disclosure framework for listed companies, infrastructure companies, and capital market institutions in Saudi Arabia
3. Promoting awareness of ESG among investors and companies in Saudi Arabia
Commenting on the signing of the Memorandum of Understanding, His Excellency the Minister of Economy and Planning Faisal bin Fadhil Alibrahim said: “This new partnership will catalyze sustainable development in the Kingdom by promoting Saudi corporate sustainability at all levels. All listed companies will be encouraged to adopt corporate sustainability practices supported by the issuance of periodic and rigorous reports.”
His Excellency added: “The development of a comprehensive ESG ecosystem will further stimulate growth of the private sector in Saudi Arabia, contributing to our target of 65% of GDP and meeting Net zero emissions by 2060, and helping to secure the Kingdom’s place among sustainable development leaders in line with the National Transformation Program objectives under Saudi Vision 2030.”
The Capital Market Authority’s (CMA’s) Chairman, H.E. Mohammed El-Kuwaiz expressed his happiness for signing this agreement which supports the financial sector to achieve the utmost standards of sustainability.
Our capabilities to globally compete and attract investors depend on the sustainability of the companies, the matter that requires us to support and boost sustainable growth policies as one of the requirements needed for creating strong economy that shall achieve the Kingdom’s targets, the Chairman added.
H.E. El-Kuwaiz stated that in the previous years, the practices of environmental and social governance and corporate governance of Tadawul-listed companies witnessed a significant development. The Chairman added that the agreement signed with the “Ministry of Economy and Planning” and “Tadawul” shall support the sector companies to adopt and apply the best international practices in this field.
Eng. Khalid Al-Hussan, Chairman of the Saudi Exchange Company, commented: “With today’s MoU, we will move forward towards achieving our shared objectives of promoting sustainable business practices among listed companies and potential issuers in the Kingdom. Fostering collaboration is key to building the future of the Saudi capital market as we establish our position as an investment destination between the East and West, on par with some of the most developed markets in the world. This MoU will contribute to the long-term growth of the Saudi capital market in line with the Financial Sector Development Program under Vision 2030.”
The Saudi Capital Market Forum, now in its second year, brings together issuers, investors, and key government entities for two days of dialogue dedicated to advancing regional capital markets. Held under the theme “Building the future of capital markets today”, the event features over 50 speakers.
