THE NEW SAUDI PARALLEL MARKET LISTING RULES DR. ZAID MAHAYNI

Pursuant to Resolution number 3-151-2016 dated 21 December 2016, the Saudi Arabian Capital Market Authority issued the Parallel Market Listing Rules (the “Rules”). The Rules entered into force as from their issuance. The Rules provide accommodation and a listing opportunity to joint stock companies that do not meet the requirements of the main market. The below table summarizes the main requirements for listing in the parallel market. It also offers a comparison with the requirements relating to the main market. PARALLEL MARKET MAIN MARKET

EXPECTED AGGREGATE MARKET VALUE (AS AT THE DATE OF LISTING) OF ALL

SHARES TO BE LISTED

At least SAR 10 million At least SAR 100 million

MINIMUM PUBLIC OWNERSHIP WITHIN THE

REQUESTED CLASS OF SHARE Not less than (20%) Not less than (30%)

MINIMUM NUMBER OF PUBLIC SHAREHOLDERS

Not less than (50) shareholders if the total market value of all shares to be listed is more than SAR 40 million

Not less than (200) shareholders Not less than (35) shareholders if the total market value of all shares to be listed is less than SAR 40 million

TRACK RECORD

Must have been carrying out, by itself or through one or more of its subsidiaries, a main activity for at least one financial year

Must have been carrying on, either by itself or through one or more of its subsidiaries, a main activity for at least three financial years under substantially the same management

The Rules confine the trading of shares listed in the parallel market to qualified investors.