Minister of Commerce and Industry Dr Hashim Yamani has approved the establishment of the first company for financial mediation as a limited stock venture with a capital of SR 400 million. The shares of the company are split into 40 million shares and the nominal value of each share is SR 10. The founders have subscribed for the entire shares and paid 25 percent of the total capital (SR 100 million). The Riyadh-based company will be concerned with security in line with the system of the Capital Market Authority (CMA) and it will not be allowed to introduce any amendment in the activities of the company without the approval of the CMA. The company will be managed by an eight-member board of directors who will be appointed by the company's general assembly for three years tenure. The establishment of the company comes in line with the state's policy which aims at broadening the economic base and enabling the private sector to positively contribute to the process of the economic development in the country.
