Riyadh- In a remarkable step, the Capital Market Authority (CMA) announced on Sunday extending Zain Saudi Arabia’s license in the kingdom for 15 years, saying it would also take five percent of the firm’s annual net income.
This is a notable step in the telecommunications’ sector on the level of competency and motivation to Zain to improve in the field of telecommunication services, especially that the company has around 12 million subscribers and thousands of qualified Saudi employees.
In the same context, CMA suspended on Sunday evening trade in the shares of the kingdom’s listed telecommunications operators: Zain, Mobily, Etihad Atheeb Telecom Co., Saudi Telecom Company and Tadawul.
Furthermore, CMA has started to prepare a program to accomplish the Saudi Vision 2030 based on its 2015-2019 strategic plan. It announced during a news conference on Sunday that “this comes as part of CMA’s belief in its role in the national economy and the part it plays to develop the capital market to be one of the important contributors to the investment power in the Saudi Vision 2030.”
Mohammed Abdullah Aljadaan, chairman of the Capital Market Authority, said that the Council of Economic and Development Affairs instructed CMA to prepare and build a separate program to achieve the Saudi Vision 2030 which would emphasize the importance of the capital market in contributing to the growth of the national economy and becoming a leading investment power, in addition to the responsibility to all related legislative and follow-up entities in the upcoming period.
“CMA’s program to achieve Saudi Vision 2030 aims to attract national and foreign investment to the Saudi Capital Market so it would be an integral part in developing the economy and diversifying its sources,” said CMA.
These updates might also reduce the number of companies vulnerable to liquidation.