POWERING THROUGH

One facet of Tadawul’s efforts towards the economic aspect of sustainability, targets increasing awareness of investment possibilities and financial literacy. A key programme that is ongoing, Invest Wisely, provides a platform designed to educate participants on investing. This programme has much potential, and is likely to be continued for several years. The programme is tailored to be beneficial to users of varying levels of knowledge and experience. They are taken through a learning experience where they can learn, engage, and practice in a realistic situation through simulation exercises. The participants trade in virtual money, but based on actual market prices.

The programme completed its fourth year, during which a number of workshops in subjects such as financial statements analysis, savings, investment and speculation were conducted. In line with Tadawul’s policy of engaging with users at its events, the Invest Wisely platform was showcased at the Financial Sector Conference which was held in April 2019 in Riyadh. The main objective of the conference is to increase the Saudi financial sector’s contribution to Gross Domestic Product (GDP).

Another aspect of our contribution to the economy is our role in assisting the small and medium enterprises (SMEs), through the Nomu – Parallel Market which is dedicated for this sector. SMEs play a major role in the economy and in job creation in emerging economies. However they face many constraints including impediments to accessing finance. This has brought demands on capital markets and stock exchanges to help overcome this barrier.

Nomu – Parallel Market has lighter listing requirements than the Main Market, which facilitates listing by smaller companies. By listing on Nomu, SMEs can raise finance for expansion and gradually make the transition to the Main Market. Our efforts to assist the smaller companies dovetail well with our commitment to the SSE’s SME Growth and sustainable development initiative.

Our activities in this focus area are aligned with SSE’s Reporting on environmental, social and governance initiative.

Tadawul has a commitment towards reducing its footprint on the natural environment by better utilization of resources leading to a higher level of efficiency and sustainability. One initiative in this direction is the recycling of paper and plastic waste.

We also conduct advocacy activities to encourage companies, large corporates in particular, to adopt sustainability practices and include sustainability criteria in their reporting cycle. Tadawul intends to provide documented guidelines on ESG to listed companies in 2020. Workshops were also held in collaboration with MSCI and FTSE Russell on ESG practices to disseminate knowledge on the subject.

Looking ahead, one of the SSE initiatives we have to address is climate action and green finance. Green finance products and services are becoming important in the global economic and financial scenario. The underlying concept is to increase the financial flows to sustainable development initiatives. We see much potential for the Exchange in this area and look forward to making a major contribution in the future.

Tadawul opened its first trading floor at the College of Business, Princess Noura University. The trading floor was inaugurated in the presence of the Chairperson of Tadawul, Mrs. Sarah Al-Suhaimi and under the patronage of the University Rector, Professor Einas Al Eisa. The Exchange also pays frequent visits to the University to educate students on Tadawul’s role and strategy.

To educate market participants and potential investors, Tadawul conducted sessions at universities, which are ongoing, to disseminate awareness of the Exchange’s role. In the course of the year, more than 400 students were hosted at eight universities across the Kingdom.

To demonstrate its commitment to protecting investors’ interests, Tadawul joined the World Federation of Exchanges (WFE) during the World Investor Week 2019 to raise awareness about the importance of investor education and protection.

The Exchange also addresses community needs by conducting social events in which employees actively participate. During Eid, Tadawul’s employees conducted a major CSR event by celebrating the occasion at hospitals with child cancer patients and injured soldiers. Tadawul also sponsored an International Children’s Day celebration for children of the Disabled Children’s Association.

Tadawul also collaborated with the GCC Board Directors Institute (GCC BDI) in organizing an event which was attended by the Chairperson and the Chief Executive Officer (CEO), Khalid Al-Hussan. We also sponsored some events of the Saudi Organization for Certified Public Accountants (SOCPA). Our support for the two professional institutions highlights our commitment to the uplifting of professional and management standards in the Kingdom.

Tadawul also demonstrated its interest in upgrading its employees’ skills by conducting a training programme for some of its staff, such as security staff, to learn basic computer skills and Microsoft Office.

Tadawul was the first Saudi company to sign the Women’s Empowerment Principles. This affirms our dedication to enhancing the position of women in the financial sector, the business community and the society in general.

Gender equality is an issue that is today at the forefront of the global sustainability agenda. Advancing the position of women in business can lead to utilization of a wider talent base, higher productivity, and more purchasing power among customers. Stock exchanges are in a strong position to promote gender equality in the corporate community.

Tadawul has included empowering women in our community-oriented activities, and it is one to which we give a great deal of importance. Our activities in this domain highlight our alignment with the SSE’s Board room diversity and gender equality initiative.

Tadawul promotes gender equality, by encouraging diversity in the Boards and Management teams of listed companies, as well as advancing gender equality in the workforce.

On International Women’s Day 2019, Tadawul hosted the “Ring the Bell for Gender Equality” event. Tadawul’s Chairperson, CEO, and employees attended the event which drew wide participation from leading women in the financial, government and private sectors. The event featured success stories which demonstrated the tremendous potential that women have. On the occasion, Tadawul’s CEO signed the Women’s Empowerment Principles, the first Saudi company to do so. The principles are directed towards strengthening the role of women in the capital market sector as well as in listed companies.

Tadawul also participates in many networking activities with other stock exchanges to promote sustainability issues in tandem with its pledge to support SDGs – in this case aligning with the SSE’s initiative of partnership for sustainable and transparent capital market.

Some of the activities are:

• Tadawul participating in dialogues conducted by the SSE through quarterly conference calls with member exchanges and other partners.
• Participating in the global dialogue led by SSE, conducted every two years, designed to bring together market leaders to analyse, communicate, and foster communication on stock exchange sustainability initiatives.