2021 Q1 Report En · Page 8

 
8  | 
Tadawul and EDAA Announce the Approval of the 
Amendments to the Short Selling Regulations, the 
Securities Borrowing and Lending Regulations, and the 
Exchange and Centre Procedures 
The Saudi Stock Exchange (Tadawul) and the Securities 
Depository Centre Company (Edaa) announce the 
issuance of the Capital Market Authority’s Board 
resolution 
number 
(1-21-2021) 
Dated 
10/7/1442H 
corresponding to 22/2/2021G and the Saudi Stock 
Exchange (Tadawul) Board resolution number (03-2021) 
Dated 
13/06/1442H 
corresponding 
to 
26/1/2021G 
approving the following: 
• 
The amended Short Selling Regulations  
• 
The amended Securities Borrowing and Lending 
Regulations  
• 
The amended Exchange and Centre Procedures  
• 
The amended Glossary of Defined Terms Used in 
the Exchange Rules  
The Short Selling Regulations and Securities Borrowing 
and Lending Regulations include amendments which 
allow all types of investors to conduct short selling and 
Securities Borrowing and Lending activities with specific 
conditions, addition to amendments related to the 
criteria and requirements to such activities. Through 
these changes, the Exchange and the Edaa aims to 
develop consistent regulatory environment with the 
international best practices and that’s to provide 
motivating and competitive atmosphere with high 
reliability, thus achieving the goals and directions of 
Tadawul and Edaa and its visions. 
It should be noted that these Rules, procedures, and the 
Glossary shall be effective on 12/8/1442H corresponding 
to 25/3/2021G. 
“Kafalah” Financings Increased by 156% during 2020 to 
a total of SAR 12.3billion  
During the year 2020, 5720 companies have benefited 
from the Small and Medium Enterprises (SME) Financing 
Guarantee Program “Kafalah", with a total financing 
value of 12.3 billion riyals compared to 4.8 billion riyals 
during 2019, which denotes an increase of 156%. 
The program explained that this increase in supporting 
the enterprises during last year 2020 is due to a number 
of initiatives; the Small and Medium Enterprises Financing 
Guarantee Program “Kafalah", with a contribution from 
the National Development Fund, has launched a number 
of initiatives worth 450 million riyals to guarantee the 
SME loans which total value is of more than 2.2 billion 
riyals, and supported by the “Kafalah" guarantee 
coverage reaching up to 90% of the loans value. It is 
thanks to the government's continuous efforts to confront 
the financial and economic impacts of the Corona crisis, 
and as one of the urgent and supportive measures for the 
sustainability of the SME sector. 
The Capital Market Authority Continues to Work on
Developing Regulations and Rules 
As part of the Capital Market Authority's ("CMA") strategic 
objectives to develop the capital market and enhance the 
confidence of the participants in the capital market. 
• 
Approval of Amendments to the Market Conduct 
Regulations 
• 
Approval of Amendments to the Rules on the 
Offer of Securities and Continuing Obligations 
• 
Approval of Amendments to the Rules for 
Special Purposes Entities 
• 
Approval of Amendments to the Investment 
Funds Regulations and Real Estate Investment Funds 
Regulations and Glossary of Defined Terms Used in 
the Regulations and Rules of the Capital Market 
Authority 
These amendments, which were approved by the 
authority to regulate and develop the financial market, 
provide additional sources of financing and refinancing in 
the economy, and r