Overview
The Capital Market in Saudi Arabia unofficially started in the early fifties, and continued to operate successfully, until the government set its basic regulations in the eighties. The current Capital Market Law is promulgated and pursuant to Royal Decree No. (M/30) dated 2/6/1424H, which formally brought the Capital Market Authority (CMA) into existence. The CMA is a government organization applying full financial, legal, and administrative independence, and has direct links with the Prime Minister.
CMA Mandate
The Capital Market Authority oversees the regulation and development of the capital market, and issues the necessary regulations, rules, and instructions for the implementation of the Capital Market Law. This is aimed at creating a favorable investment environment, enhancing confidence in the market, ensuring adequate disclosure and transparency by listed companies, and protecting investors and securities traders from unlawful practices in the market.
Vision
For the Saudi capital market to become a primary source of financing and investment for the growth of the national economy, and one of the most prominent capital markets in the world.
Mission
To regulate and develop the capital market in order to protect investors, enhance market stability, and create an investment environment that supports the growth of the national economy.
Values
- We Continuously Develop | The Authority works to continuously develop and improve the policies, procedures, systems, and programs used in conducting its business, which in turn leads to the enhancement of services provided to capital market participants and the growth of the national economy.
- We Care for Our Employees and Community | The Authority believes that its staff are its most valuable asset, and that fostering their loyalty through genuine care benefits both society and the nation. Therefore, the Authority strives to create a supportive and motivating work environment, and offers diverse programs serving the community in the areas of development, training, and financial awareness.
- We Strive for Excellence | The Authority is distinguished by the competence of its staff and is committed to developing their skills and expertise to achieve the highest standards of quality, with professionalism, adherence to codes of conduct, and delivery of the best possible services to capital market participants.
- We Take Responsibility | This value reflects the Authority's sense of responsibility and duty toward its community and employees, as well as employees' sense of accountability toward their roles, and their commitment to working with integrity, dedication, and sincerity to achieve the Authority's vision and mission.
- We Communicate and Collaborate | The Authority promotes cooperation, consultation, and communication with professionalism and integrity as a collaborative team characterized by mutual respect, both within the Authority and externally with capital market participants and stakeholders.
Functions
The CMA’s functions are to regulate and develop the Saudi Arabian Capital Market by issuing required rules and regulations for implementing the provisions of Capital Market Law. The basic objectives are to create an appropriate investment environment, boost confidence, and reinforce transparency and disclosure standards in all listed companies, and moreover to protect the investors and dealers from illegal acts in the market.
Duties and Authorities
The CMA is entrusted with the following duties:
- Regulate and develop the capital market and promote appropriate standards and techniques for all sections and entities involved in Securities Trade Operations.
- Protect investors and the public from unfair and unsound practices involving fraud, deceit, cheating, manipulation, and inside information trading.
- Maintain fairness, efficiency, and transparency in transactions of securities.
- Develop appropriate measures to reduce risks pertaining to transactions of securities.
- Develop, regulate, and monitor the issuance of securities and under-trading transactions.
- Regulate and monitor the activities of entities working under CMA.
- Regulate and monitor full disclosure of information related to securities and issuers.
CMA’s Board
The CMA is governed by a Board of five (5) full-time Commissioners appointed by the Royal Decree:
Executive Management
- Mr. Bader Mohammed Balghonaim, CMA Deputy of Legal Affairs & Enforcement.
- Mr. Abdullah Mohammed Binghannam, CMA Deputy of Financing & Investment.
- Mr. Sulaiman Abdulmohsen Alsulaiman , CMA Deputy of Technology & Digitalization.
- Mr. Marwan Abdulaziz Alsudais , CMA Deputy of Corporate Resources.
- Mr. Sami Mohammad Alshorafa, CMA Deputy of Supervision.
- Mr. Raed Ibrahim Alhumaid, CMA Deputy of Market Institutions.
- Mr. Abdulaziz Mohammed Almojel, CMA Deputy of Strategy, Research & International Relations.
- Mr. Ali Sulaiman Aldakheel, General Director of Communication & Investor Protection Division.
- Mr. Abdulkreem Yousef Alsanie, General Director of Internal Audit Division.
- Mr. Fahad Suliman Alissa, General Director of Risk Management.
- Mr. Abdullah Ahmad Al-Shabanah, Secretary General of Secretariat & Internal Governance.
- Mr. Omar Ali Al-Abdulkarim, CMA Assistant Deputy of Investigation & Enforcement.
- Mr. Fahad Mohammed Hamdan, CMA Assistant Deputy of Investment.
- Mr. Ahmad Atallah Alenizi, CMA Assistant Deputy of Strategy, Research & International Relations.
- Mr. Sulaiman Sulaiman Alhaidri, CMA Assistant Deputy of Technology & Digitalization.
- Mr. Abdulrahman Sulaiman Al-Akeel, CMA Assistant Deputy of Supervision.
- Mr. Mohammed Ibrahim Almuammar, CMA Assistant Deputy of Market Institutions Supervision & Authorization.
- Mr. Mohammad Abdulaziz AlFaadhel, CMA Assistant Deputy of Financing.
- Mr. Nasser Salem AlGhamdi, CMA Assistant Deputy of Legal Affairs.
- Mr. Fahad Abdulaziz Alrumaih, CMA Assistant Deputy of Corporate Resources.
Stock Exchange
The Saudi Capital Market Law provides for the establishment of the “Saudi Stock Exchange” as a Joint Stock Company that operates as the only authorized entity to carry out the trading of securities in the Kingdom of Saudi Arabia .
The exchange operations are currently conducted through Saudi Stock Exchange (Tadawul), purporting to continuously develop a full-fledged security market that provides comprehensive and diverse financial services to compete internationally. Consistent with its mission to produce top quality and highly efficient securities exchange market products and services, the exchange constitutes to be an added advantage for all beneficiaries and participants in the market.
Securities Depository Center
The Capital Market Law provides for the establishment of the Securities Depository Center solely entrusted to execute the transactions of deposit, transfer, settlement, clearing and registering ownership of securities traded on the Exchange.
The functions of the Securities Depository Center are currently operated by The Saudi Stock Exchange (Tadawul).
