2020 Q2 Report En · Page 6

 
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The Capital Market Authority (CMA) Permits the Fintech 
Experiment Applications 
Based upon the Capital Market Law and reference to the Financial 
Technology Experimental Permit Instructions which aims to 
provide a regulatory framework that is conducive for the 
innovation of Financial Technology (FinTech) in the capital 
market within the Kingdom, the CMA Board of Commissioners 
issued its resolution to grant Mudaraba Capital Company a 
Financial Technology Experimental Permit (ExPermit) to establish 
a platform for offering and investment in debt instruments. Based 
on this permit, Mudaraba Capital Company will enable SMEs to 
obtain the required funding by arranging the offering of Sukuk to 
finance projects, and offering them to the collective investors 
registered in the platform.  
Also, the CMA Board of Commissioners issued its resolution to 
grant Wethaq Capital Markets Platform Company a Financial 
Technology Experimental Permit (ExPermit) to use Distributed 
Ledger Technology (DLT) to arrange the offering of securities and 
custody services. Based on this permit, Wethaq Capital Markets 
Platform Company will utilize Distributed Ledger Technology to 
arrange the offering of securities (Sukuk as a preliminary stage) to 
investors, in coordination with the Issuer and the Authorized 
person (AP) assigned by the Issuer as an Offering Advisor. 
The Completion of the Saudi Market's Inclusion in FTSE 
Russell Secondary Emerging Markets (EM) Index 
The second and final tranche of the fifth phase of Saudi Arabia's 
inclusion in FTSE Russell Secondary Emerging Markets (EM) 
Index started Monday 22/06/2020, based on closing prices as of 
June 18. The "FTSE Russell" has decided to divide the fifth and 
final phase of joining Saudi stocks to its indicator into two 
tranches – the first with an inclusion factor of 25% was 
implemented in March 2020 and the second with an inclusion 
factor of 75% has been completed in June 2020.  
The Capital Market Authority Exempts Listed Companies 
from Paying the Fees Required by the CMA for a Period of 
One Year and for Debt Issuers Until the End of 2025 
The CMA Board of Commissioners has issued its resolution to 
exempt listed companies for a period of one year starting from the 
end of June 2020 from paying the fees of submitting an 
application to register shares, reviewing the application related to 
the registration of shares, and the registration of shares for 
requests to register and offer new shares of a class already listed 
by raising capital either by way of rights issue or debt conversion. 
In addition, the CMA Board of Commissioners has issued its 
resolution to extend the exemption to debt instruments issuers 
intending to publicly offer debt instruments from paying the fees 
payable to the CMA upon submitting an application to register 
debt instruments, reviewing the application related to the 
registration of debt instruments and registration of debt 
instruments until the end of 2025. This initiative is part of CMA’s 
efforts to alleviate the economic impacts resulted by the 
Coronavirus pandemic (COVID-19) and in line with the 
precautionary measures announced by the CMA to assist the 
participants in the capital market during these exceptional 
circumstances. 
Tadawul Announces the Listing of AlBilad Gold ETF (by Al 
Bilad Capital) 
The Saudi Stock Exchange (Tadawul) announces the listing and 
trading units of “AlBilad Gold ETF” as an Exchange Traded Fund 
on Tuesday 02/06/