Chairman of the Board of Directors 

Greetings,

With reference to the subject above, and pursuant to Circular No. (11) regarding General Assemblies for Licensed Persons and Circular No. (12) of 2017 on General Assemblies of Listed Companies issued on 26/11/2017, within the framework of CMA on regulating securities activities and ensure compliance with the laws and regulations, including regulating the work of licensed persons and listed companies.

CMA draws the attention of all licensed persons and listed companies that it is not necessary to obtain the approval of CMA in respect to the increase of the authorized capital in the event of applying to the Ministry of Commerce and Industry a request for the convening of an Extraordinary General Assembly, because the increase of the authorized capital does not require issuing or offering of securities either directly or indirectly.

CMA notes in this regard the need to obtain the approval of the Authority on the increase of a paid up capital and issuer.

Based on the memorandum of understanding on coordination of cooperation between the Ministry of Commerce and Industry and the Capital Markets Authority signed on 21/11/2017, the Ministry shall undertake the procedures followed for the holding of Ordinary and Extraordinary General Assemblies, taking into account any comments that may be made by the Authority on the agenda.

The Authority also affirms the necessity of complying with the provisions of the Executive Bylaws of Law No. 7 of 2010 regarding the establishment of the Capital Markets Authority and regulating securities activities and their amendments, as well as compliance with all the requirements stipulated in the regulations regarding issuing or offering securities.

Prof. Ahmad A. Al-Melhem
Issued on: 17/7/2019