Research On Related Issues To Capital Market In Saudi Arabia

Saudi Arabia's economy dominated by a majority as high as 95%family-owned private sector entities which belong to families rather than other corporate structures,in addition,a higher than average state-owned enterprise that dominate the top biggest markets:energy and utility market,public services and petrochemicals which together represent 39%of the total market capitalization,is the situation.This study hypothesizes that Saudi Arabia's capital market must be directly affected by the high family percentage of the family entity companies and the wide state-owned slice combination.This study uses the case study method of research in examining the influence of this combination of socioeconomic reality and how it would impact the Kingdom's capital market.The study reaches to several findings on how the capital market is influenced by the family-owned/state-owned combination that can be correlated as external aspect of SMEs corporate to do with the oil-GDP combined with the state enterprise in the energy and utility markets,and from the internal aspect corporate behaviors according to this situation with the top decision-makers who interfere in the financial decision-making leaving little space for corporate fund hedge professionals.