Press Releases

​The International Swaps and Derivatives Association (ISDA) endorsed the Close-out Netting and related Collateral Arrangements Regulation adopted by the Capital Market Authority (CMA), which came into effect in July 2025, confirming its alignment with international standards.

According to a statement published by ISDA's official website, the Regulation adopted by the CMA has been included within the scope of ISDA's legal opinions consistent with international derivatives agreements. This signifies that the Kingdom of Saudi Arabia has become a jurisdiction supporting international netting legislation, thereby strengthening the enforceability of such contracts at the international level.

Mr. Raed Ibrahim Alhumaid, CMA Deputy of Market Institutions, explained that the Regulation approved by the CMA about four months ago was designed to regulate netting agreements and related financial collateral arrangements in which one of the parties is a Capital Market Institution. The Regulation aims to enhance the stability of the financial system and protect investors, thereby contributing to the growth of investments in the capital market, including the derivatives market.

Alhumaid noted that the Regulation was approved and implemented to ensure the enforceability of eligible financial contracts and their protection from any subsequent changes to the circumstances under which they were executed, including the initiation of bankruptcy proceedings. It also guarantees the enforcement of the terms and provisions contained in such contracts in the event of default by either party, thereby safeguarding the rights of all parties involved. This comes in light of ISDA's issuance of various guidelines and templates aimed at strengthening netting practices and legislation across different jurisdictions.

The Deputy of Market Institutions affirmed that the CMA continuously reviews and develops the rules and regulations governing the capital market to enhance its attractiveness. He noted that ISDA's endorsement of the alignment of the Close-out Netting and related Collateral Arrangements Regulation with global practices is a positive step toward strengthening confidence in the Saudi market and reflects the Regulation's alignment with international standards in this regard.

Scott O'Malia, ISDA's Chief Executive, stated that the adoption of the Regulation by CMA has enabled ISDA's netting opinions to clearly confirm that netting is enforceable for trades with any Saudi financial counterparty, whether an investment manager supervised by the CMA or a bank regulated by SAMA. He described this is as a big step in the further development of Saudi Arabia's financial markets, and expressed his appreciation to the CMA for its constructive engagement with ISDA and the industry throughout the development and consultation process.

On July 3, 2025, the CMA approved the Close-out Netting and related Collateral Arrangements Regulation, which outline measures for handling the default of a party to a netting agreement or other specific cases outlined in the regulation, provided that one of the parties involved is a capital market institution. The Regulation includes a set of provisions governing close-out netting and associated collateral arrangements, defines its scope of application and the entities subject to it, and defines qualified financial contracts and transactions that would be exempt from the provisions of the Bankruptcy Law. This step is expected to contribute to enhancing the stability and sustainability of the Kingdom's financial sector and the overall capital market framework.​

The Capital Market Authority (CMA) announced the opening of registration for the 16th batch of its Graduate Development Program, which aims to support and develop young national talent by equipping them with the skills and knowledge necessary to enter the labor market and contribute to the development of the Kingdom's financial sector.

The program, open for registration from Sunday, October 19 until November 15, targets graduates from local and international universities. It offers participants a 12-month practical training opportunity across various CMA departments in several professional tracks, including finance, law, accounting, management, technology, and capital markets.

The program focuses on developing participants' personal and professional skills, providing them with the opportunity to work alongside distinguished professionals in the capital market, benefit from their practical expertise, and gain specialized experience in the Capital Market Law and its implementing regulations. It also enables trainees to integrate into different work teams, enhancing their analytical and decision-making skills, while supporting them in obtaining recognized professional certifications.

Following the registration period, the CMA will review and verify all applications. Personal interviews will be conducted between December 14, 2025, and January 8, 2026, with the list of accepted candidates to be announced on January 12, 2026. The program is set to commence on February 1, 2026.

For his part, Mr. Marwan Abdulaziz Alsudais, Deputy of Corporate Resources at the Capital Market Authority, stated that the program serves as an important initiative for developing national talent and advancing the capital market by providing specialized professionals in various market fields. He emphasized that since its establishment, the CMA has taken on this responsibility out of its strong belief in the importance of preparing outstanding national talents, viewing them as a sustainable investment that will significantly contribute to the future of the financial sector and support the objectives of Saudi Vision 2030.

The program offers participants a competitive monthly allowance based on their academic degree, in addition to medical insurance coverage for the trainees and their families, and 21 days of paid annual leave. Participants will also have the opportunity to join training programs within and outside the CMA, as well as attend various events and forums aimed at enhancing their skills, deepening their understanding of the capital market, refine their skills, and enhance their readiness for the labor market.

Deputy of Corporate Resources at the CMA, invited outstanding graduates from local and international universities to take advantage of this opportunity to join the program, which provides an integrated training environment combining practical learning and professional development through the CMA's official website.

For more information, conditions, and application requirements, please visit the program page:
Capital Market Authority's Graduate Development Program (16th Batch)​

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The Capital Market Authority (CMA) has issued its 2024 Annual Report, reflecting sustained momentum in the growth and development of the Saudi capital market. The report highlights exceptional achievements and record-breaking figures across various regulatory, legislative, and developmental areas, reinforcing the Kingdom's position as an attractive destination for both local and international investment and demonstrating the rapid progress toward the goals of Saudi Vision 2030.

According to CMA's 2024 Annual Report, the value of assets under management in the Saudi capital market exceeded one trillion SAR for the first time by the end of 2024, recording a growth rate of 20.9% compared to the previous year. The number of investment funds rose to 1,549, while the number of subscribers in public and private funds exceeded 1.72 million, an increase of 47% compared to 2023.

In terms of regulatory, legislative, and developmental aspects of the market, the CMA in 2024, approved the Instructions on the Offering of Real Estate Contributions Certificates, aimed at regulating the registration and offering of such certificates. It also approved several amendments to a set of regulations, including the Capital Market Institutions Regulations, the Investment Account Instructions, and the Implementing Regulation of the Companies Law for Listed Joint Stock Companies, in addition to amendments to the Rules on the Offer of Securities and Continuing Obligations.

The CMA has also prioritized the development of the sukuk and debt instruments market, which positively impacted the market through the approval of the largest set of regulatory enhancements since the market's inception. These included easing regulatory requirements and expanding the category of qualified investors.

According to the report, the total value of listed sukuk and debt instruments in the Saudi capital market reached SAR 663.5 billion by the end of 2024, compared to SAR 549.8 billion at the end of 2023, reflecting a growth rate of 20.6% over the year.

The year 2024 also witnessed growth in public offerings and equity registrations, with the CMA approving 60 applications, an increase of 36.4% compared to 2023, including 40 applications in the Parallel Market and 16 in the Main Market. A total of 44 listings were completed in both markets during the year, marking continued strong activity in IPOs.

In terms of foreign investment, the Saudi capital market continued to achieve record levels, with net foreign investments reaching SAR 218 billion by the end of 2024, compared to SAR 198 billion the previous year, an increase of 10.1%. The value of foreign ownership also rose to SAR 423 billion, representing 11% of the total free float shares in the Main Market.

In relation to the licensing and supervision of capital market institutions, the number of licensed institutions rose to 186 by the end of 2024. Revenues of capital market institutions increased by 29.6% compared to the previous year, reaching SAR 17 billion, while their profits grew by 39.3% to reach SAR 8.8 billion.

The report also highlighted Saudi Arabia's leading position among G20 countries in several international financial market indicators, according to the 2024 World Competitiveness Yearbook issued by the International Institute for Management Development (IMD). The Kingdom ranked first in the Capital Market Index, Stock Market Capitalization Index, Shareholders' Rights Index, and Venture Capital Index. Overall, Saudi Arabia saw improvements in 8 out of the 12 capital market related indicators included in the report.

The report also confirmed the CMA's continued efforts to enhance investor protection tools. In 2024, the CMA completed the handling of 121 cases, while compensation awarded to affected investors exceeded SAR 389 million, distributed among 921 beneficiaries. The average litigation period decreased to 4.4 months compared to 5.5 months in 2023. Additionally, the CMA issued enforceable decisions against 171 violators of the laws and regulations under its jurisdiction, and followed up on 45 enforcement requests.

His Excellency Mr. Mohammed bin Abdullah Elkuwaiz, Chairman of CMA, stated in his remarks on the CMA's 2024 Annual Report, that the CMA approved its strategic plan for the years 2024–2026, in line with emerging economic developments. The plan includes nine objectives distributed across three strategic pillars: the first focuses on activating the capital market's role in financing and investment; the second on empowering the capital market ecosystem; and the third on protecting investor rights. H.E. noted that the plan was developed based on a comprehensive analysis of the capital market sector and through alignment with stakeholders to identify key areas for improvement and development.

H.E. further explained that the annual report reflects the profound transformation taking place in the capital market, confirming that 2024 witnessed significant developments that contributed to enhancing the regional and global standing of the Saudi capital market. This was evident in the increase in assets under management, the value of fund of funds, and exchange-traded funds, all of which reached record levels compared to the previous year. These achievements, along with the CMA's efforts to deepen the market, introduce regulatory enhancements, expand the investor base, improve liquidity and market stability, and boost competitiveness, are driving sustainable growth. Additionally, enhancing the performance of the Saudi capital market, increase its contribution to GDP, and improve its attractiveness to both local and foreign investors, all in support of achieving the goals of Saudi Vision 2030.​

To view the CMA's 2024 Annual Report, please click here​

​The Capital Market Authority (CMA) announces the launch of the 15th batch of the Graduate Development Program (GDP) for 2025. The program serves as a gateway to attract high-achieving fresh graduates from Saudi universities and international scholarship programs through intensive practical and theoretical training in various specialties related to the capital market.

The program aims to develop young national talent by providing comprehensive training that equips participants with practical experience in fields such as finance, law, accounting, management, and technology. Over 12 months, trainees receive practical on-the-job training within the CMA, along with specialized theoretical courses that enhance their skills and understanding of the Saudi capital market environment. Additionally, the program supports trainees in obtaining specialized professional certifications, significantly enhancing their employment opportunities across financial and investment sectors.

The CMA will begin accepting applications today, Sunday, March 23, 2025, and will continue until April 15, 2025. Personal interviews for selected applicants will take place between May 7 and May 20, 2025, with results announced on May 26, 2025. The program is scheduled to start on June 17, 2025.

Mr. Marwan Abdulaziz Alsudais, CMA Deputy of Corporate Resources, highlighted the Authority's dedication to attracting distinguished fresh graduates holding bachelor's or master's degrees to provide them with essential on-the-job experience that complements their academic excellence. He stressed that this approach significantly contributes to preparing skilled, leadership-ready professionals for promising careers in the financial sector.

Alsudais highlighted the benefits provided by the program, including a monthly allowance of SAR 12,000 for bachelor's degree holders and SAR 14,500 for master's degree holders, medical insurance coverage for the trainee and their family (spouse and children), 21 days of paid annual leave, and participation in internal and external training programs. These benefits collectively contribute to the personal and professional development of trainees and support their future careers post-graduation.

The Deputy of Corporate Resources, urged all qualified graduates to apply and take advantage of this distinguished training opportunity through the official CMA website, which contains all necessary details regarding application requirements and admission criteria. He also underscored the program's positive outcomes observed in previous batches, reflecting the effectiveness and quality of the offered training, specifically tailored to match and respond to actual market needs.

For more information, conditions, and application requirements, please visit the program page:

Capital Market Authority's Graduate Development Program (15th Batch)

The Capital Market Authority (CMA) announces the launch of the fourth batch of the Research Agenda Program for 2025, in its new and comprehensive form, with the establishment of the scientific committee formed by the CMA's Board last July, and the amendment of the mechanism for receiving research proposals to be in 3 periods during the year, in addition to identifying a number of proposed research areas for the fourth edition.

Through the Research Agenda Program, CMA aims to enhance the presence of the Saudi capital market in scientific literature, promote knowledge exchange between researchers and academics on one hand and practitioners in the capital market sector on the other, improve the quality of research and studies, and support policy-making and decision-making based on scientific research. Additionally, the program contributes to raising financial literacy and awareness among participants in the capital market.

Starting with the current batch of the Research Agenda Program, researchers will have the opportunity not only to submit proposals within the approved research areas but also to propose topics and areas outside of the predefined categories that they believe are important to the capital market and the CMA's core functions.

The proposed research areas for the current batch, as approved by the Scientific Committee, include: Capital Market and Market Microstructure, Derivatives Securities and Other Investment Products, Policy Impact Assessment, Behavioral Finance, Capital Market Institutions, Institutional and Foreign Investment, in addition to other topics and research areas suggested by applicants.

It is worth noting that, as part of the CMA's continuous efforts to develop the research agenda program and starting from the current batch 2025, the opportunity will be available to receive research proposals all year round, provided that the CMA shall review the said proposals within three periods; mid of January 2025, mid of March 2025 and mid of June 2025.

The 2025 Research Agenda Program reflects the CMA's commitment to its societal responsibility towards the research community, participants in the capital market, and other stakeholders. The program is part of the CMA's ongoing efforts to achieve the desired level of high-quality research outputs related to the capital market at the national level. Through the program, the CMA provides both technical and financial support for the completion of selected research projects and works to offer the necessary information and data to facilitate scientific research. ​

Since its launch in 2021, the program has achieved a number of successes, most notably expanding the scope of research cooperation with a large number of researchers affiliated with local and international academic institutions and research centers, in addition to increasing the number of research and studies published on the CMA's official website as well as publishing in scientific journals, which was positively reflected in achieving the objectives of the Research Agenda Program.

During the previous three editions of the program, the CMA received approximately 130 research proposals involving about 132 researchers from Saudi universities, compared to 50 international researchers affiliated with foreign academic institutions. Additionally, 20 researchers from other entities, including research centers and specialized institutes, participated. Several accepted studies were published on the CMA's website, and some were used to support policy-making and decision-making within the CMA. 

Regarding the academic qualifications of applicants in previous editions, 170 researchers held doctoral degrees. The experience levels of the applicants varied, with most having between 10–20 years of experience. 

The CMA invites researchers locally and internationally to submit their research proposals in the suggested areas through the designated electronic form by: 

1. Visiting the official CMA website. 

2. Downloading, completing, and submitting the research proposal form via email: Research.agenda@cma.org.sa

For more details, please visit the following link: 

Research Agenda ​

​The Capital Market Authority (CMA) announced today the final date for considering FinTech ExPermit applications within the eighth review of the FinTech ExPermit. In a statement released today, the CMA stated that applications received by Tuesday, December 31 of this year would be included in the current round, indicating that it will evaluate applications received after this date within the next round.

The CMA invites all interested parties to submit applications for obtaining a FinTech Experimental Permit, provided that the submitted applications meet the necessary criteria for qualifying the FinTech product in accordance with the Financial Technology Experimental Permit Instructions. Among the key criteria is that the proposed product must fall under securities activities regulated by the CMA and be in an advanced stage of development that allows for its testing in the FinTech Lab.

The CMA's announcement of the eighth review round reflects its commitment to regulatory enablement for financial technology innovations and the promotion of this vital sector within the capital market. Since the launch of the FinTech Lab in 2018 until the end of the first half of 2024, 53 FinTech Experimental Permits have been granted. These permits have introduced several innovative models to the capital market, resulting in a diversification of investment tools available to various categories of investors and enhancing the attractiveness of financing through the capital market.

The authorized FinTech companies operating under the FinTech Lab have achieved remarkable results since commencing their activities under the permit until the first half of this year. The total funds raised through equity crowdfunding platforms and debt instrument offering platforms have exceeded SAR 3.8 billion, reflecting their active role in providing suitable financing solutions to support and expand economic entities at all stages. Additionally, investment fund and real estate investment fund distribution platforms have successfully attracted a wide range of investors to participate in CMA-licensed funds, with the total value of distributed units surpassing SAR 2.6 billion. The robo-advisor business model has also contributed to enabling investors to access innovative tools for managing their investments, with assets managed through robo-advisor platforms exceeding SAR 2.2 billion.

The FinTech Lab aims to attract a broader variety of innovative business models to the capital market. The CMA encourages innovators to leverage the Kingdom's highly attractive and rapidly evolving FinTech ecosystem, enabling companies to innovate in the financial market and provide suitable investment and financing services for all market participants. This initiative aligns with the collaborative efforts under the Financial Sector Development Program (FSDP).

For more information about the Financial Technology Experimental Permit Instructions, please visit the following link:

Financial Technology Experimental Permit Instructions

To obtain information about the FinTech Lab and Application, please visit the following link:

Fintech Lab

On Thursday, November 14, 2024, the Capital Market Authority (CMA) and the Real Estate General Authority (REGA) signed a Memorandum of Understanding to regulate real estate contribution activities in the Kingdom.
The cooperation agreement aims to regulate real estate contributions, enhance transparency and disclosure, protect the rights of all parties involved in real estate contributions, and establish governance, regulation, and automation of these contributions. As one of the investment financing channels for real estate developers, this initiative seeks to bolster investor confidence in the Kingdom’s real estate sector.
The memorandum, signed on the sidelines of the Cityscape Global Exhibition hosted in Riyadh from November 11 to 14, 2024, was attended by His Excellency the Minister of Municipal Rural Affairs and Housing, Mr. Majed bin Abdullah Al-Hogail, CMA Vice Chairman Mr. Youssef Hamad Al-Bilihid, and CEO of the Real Estate General Authority, Eng. Abdullah bin Saud Al-Hammad. The memorandum is part of joint efforts to enhance cooperation between the two entities and to establish arrangements aimed at governing joint activities in implementing the provisions of the Real Estate Contributions Law and its executive regulations. Representing the CMA in the signing was Deputy of Financing & Investment Mr. Abdullah Mohammed Binghannam, while the General Authority for Real Estate was represented by Mr. Abdullah bin Saud Al-Duhaim, the General Supervisor of the Real Estate Development Sector.
It is noteworthy that the Real Estate Contributions Law was issued by Royal Decree No. (M/203) dated 28/12/1444H, and based on Cabinet Resolution No. (881) dated 23/12/1444H. This Law is part of a broader legislative framework for real estate to achieve the objectives of the comprehensive real estate sector strategy. It aims to govern, empower, and sustain the sector, enhancing its efficiency and the professionalism of its workforce. The initiative also seeks to improve transparency and disclosure in real estate activities, protect the rights of all contractual parties, and create a secure and reliable real estate market for participants and investors.​​

The Capital Market Authority launches the 14th batch (2024-2025) of the Graduate Development Program (GDP) starting today, August 25, 2024. This comes as part of the CMA's social responsibility initiatives to raise the level of knowledge and skills of graduates in the financial and regulatory aspects of the securities field, enhancing their opportunities to obtain jobs in the capital market sector.

Applications for this program will be accepted until September 14, 2024. Personal interviews will be conducted from October 6 to October 31, 2024, with the program commencing on December 8, 2024.

The program spans 12 months of theoretical and practical training, providing participants with the necessary knowledge and experience regarding the relevant laws, regulations, and procedures in the capital market field. It also offers practical application of the CMA's legislative and supervisory roles and their collaboration with other regulatory bodies in the capital market. Additionally, the program allows trainees to enroll in preparatory programs for professional certificates and exams and develop their job skills. 

Mr. Marwan Abdulaziz Alsudais, CMA Deputy of Corporate Resources, emphasized that the GDP supports outstanding students in their academic achievements, enabling them to acquire essential skills for their careers. In addition, the program contributes to building highly qualified national cadres capable of developing the financial sector and enhancing the national economy.

Alsudais stated that the current batch includes five training tracks: finance, law, accounting, technology, and management. The program offers various benefits to participants, including a monthly allowance of SAR 12 thousand for bachelor's degree holders and SAR 14.5 thousand for master's degree holders, medical insurance for the trainee and their family (spouse and children), an annual paid leave of 21 days, and both internal and external training programs. These benefits enhance personal and professional development and provide a significant opportunity to gain valuable experience in the capital market field.

The Deputy noted that the past three batches trained more than 90 trainees, with ongoing training programs for the 12th and 13th batches, which include 71 trainees. He pointed out that one of the CMA's proud achievements is that 16% of its leadership positions are held by graduates of the program after they gained the necessary practical experience and demonstrated their competence and excellence. He also emphasized that the CMA places great importance on this program, alongside other training programs, as part of its belief that capacity building is one of its primary responsibilities towards the capital market sector.

For more information, conditions, and application requirements, please visit the program page:

CMA's Graduate Development Program (14^th Batch)​

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The Capital Market Authority Board has issued a decision to form the Scientific Committee for the Research Agenda Program, which is dedicated to building bridges of communication with researchers in academic institutions and research centers to provide rigorous applied research in fields related to capital markets and CMA's primary functions. The committee's first term includes five members who are academic and professional experts with experience and publications in peer-reviewed scientific journals.

The committee members for the first term are: Dr. Walid Alissa, a member of the Capital Market Authority Board, as the committee chairman; Dr. Asem Alhomaidi; Dr. Heba Gazzaz; Dr. Abdullah Alshwer; and Dr. Haitham Al-Zoubi as Independent Members.

The committee aims to formulate the general policy for the Research Agenda Program, contribute to increasing the number and quality of research that serves the capital market in the Kingdom of Saudi Arabia, participate in improving the data and information environment related to the capital market, and strengthen research partnerships between the capital market sector and its institutions with universities and research centers.

The Scientific Committee for the Research Agenda Program is responsible for several tasks and responsibilities, including proposing improvements for research partnerships with local and international universities and research centers. The committee also selects a list of research areas important to the capital market sector for the annual research agenda cycle, approves the frameworks for proposed research projects, conducts the final review of completed research drafts, approves them, recommends their publication, and provides proposals for enhancing the quality of data related to the capital market.

The formation of the Scientific Committee for the Research Agenda Program is an extension of the Capital Market Authority's efforts and commitment to enriching scientific research in capital market fields. The committee is formed by a decision from the Capital Market Authority Board and consists of no fewer than five and no more than seven members, with one board member serving as the committee chairman. At least two-thirds of the committee members must be independent.

The Capital Market Authority Board issued its decision on January 22, 2024, to approve the charter for the Scientific Committee for the Research Agenda Program. This decision is part of the Authority's efforts to support and develop research in the capital market field and to enhance research partnerships.

For more information and details about the Scientific Committee for the Research Agenda Program in its first term, please visit the Authority's website through the following link (here).

The Capital Market Authority (CMA) issued its 2023 annual report, highlighting significant leaps and record achievements in various regulatory and legislative aspects, as well as developmental and investment product areas. During the past year, CMA approved a new regulation and amended four other regulatory regulations, rules, and instructions. That year also saw the approval by the Council of Ministers of the Real Estate Contributions Law, all in the continuous effort to develop legislation and regulations governing the capital market, according to the annual report issued today.

According to the Annual Report, the Rules for Foreign Investment in Securities was approved. Additionally, amendments were made to regulations, rules, and instructions, including the Implementing Regulations of the Companies Law for Listed Joint Stock Companies, the Capital Market Institutions Regulations, the Instructions for Company Announcements, and the Investment Accounts Instructions. Additionally, the Real Estate Contributions Law, implemented in collaboration with the Real Estate General Authority (REGA), received approval from the Council of Ministers.

In the report, CMA revealed several positive developments in the sukuk and debt instruments market over the past year. Among these developments were the adoption of the Debt Market Development Strategy and the cancellation of the Authority's share of the trading commission on sukuk and bonds to stimulate secondary market activities for debt instruments and overall liquidity.

According to the report, the size of the sukuk and debt instruments market reached 18.3% of the GDP by the end of 2023. The number of sukuk and debt instruments listed on the capital market totalled 70, with the funds raised from sukuk and debt instrument offerings amounting to SAR 29.95 billion, including SAR 29.85 billion from private placements and SAR 100 million from public offerings.

Regarding foreign investment in the Saudi capital market, 2023 witnessed unprecedented record levels, with net foreign investments reaching SAR 198 billion, an increase of 7.7% compared to 2022. The ownership of foreign investors continued to rise, reaching SAR 401 billion by the end of 2023.

Additionally, the past year saw the number of offerings and listings in the Saudi capital market reach 43 listings during 2023, marking a 79% increase from the target listings for the same year. This included the public offering of shares of 7 companies in the main market, the listing of 29 companies in the parallel market, the direct listing of shares of 6 companies in the parallel market, and the listing of a traded real estate fund.

At the inspection level, in accordance with CMA responsibilities, 37 permits were inspected, including 23 routine inspections and 14 cause inspections. On the regulatory side, intensive investigations into suspicious trading activities increased from 859 cases in 2022 to 1019 cases, an 18.6% increase, resulting in 7 cases of suspected violations and 59 regulatory inquiries.

The Annual Report also stated that the total number of complaints received by the CMA in 2023 amounted to 7,025, of which 5,056 complaints were settled, and 1,047 complainants were directed to the Committee for the Resolution of Securities Disputes (CRSD), while 855 complaints are under study.

In fulfilling its role in investor protection, CMA concluded 146 cases and executed 179 sanction decisions against violators of the Capital Market Law (CML) and its implementing regulations. Additionally, 579 investors were compensated with amounts exceeding SAR 245 million by final decisions issued by the CRSD.

On the judicial level, the total amount of fines and financial penalties issued by CMA and CRSD against violators of the regulations under the Authority's jurisdiction amounted to SAR 1.395 billion, of which SAR 375.35 million were collected.

As a result of these efforts and achievements, the Kingdom positioned itself at the top of several global financial market indicators, ranking first among G20 countries in the Board of Directors Index, and second in the Ease of Access to Financial Markets Index, Stock Market Capitalization Index, Shareholder Rights Index, and Venture Capital Index. According to the IMD World Competitiveness Yearbook, the Kingdom improved its ranking in 6 out of 12 financial market indicators and maintained its ranking in 2 indicators compared to 2022.

His Excellency Mr. Mohammed Elkuwaiz, Chairman of the Capital Market Authority, praised the achievements of the Saudi capital market over the past year, noting that CMA continues its efforts to fulfill its role alongside its partners in the Financial Sector Development Program (FSDP).

The Chairman emphasized that CMA is on its path towards further development and advancement of the Saudi capital market to be at the forefront of global markets, noting that CMA has completed its strategic plan for the years 2021-2023 and is preparing to announce its new strategic plan upon approval by the Authority's Board. The new plan's objectives are designed to align with Saudi Vision 2030.

The Capital Market Authority achieved record numbers in 2023 within the performance indicators outlined in its strategic plan for 2021-2023, surpassing targets in 9 out of 13 strategic indicators, meeting targets in 2 indicators, and nearing targets in the remaining 2 indicators. ​

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The Sukuk and debt capital market in Saudi Arabia has achieved an annual growth rate of 7.9% since 2019, with this growth primarily concentrated in unlisted issuances, which have grown at an annual rate of 9.6%. Additionally, the number of issuers has increased alongside the market's growth. The unlisted sukuk and debt capital market has grown by approximately SAR 33 billion since 2019, reaching approximately SAR 105 billion in 2023, compared to SAR 72 billion in 2019.

The Capital Market Authority (CMA) continues its efforts to develop the sukuk and debt capital market as one of the important financing alternatives that the capital market provides to finance public and private sector projects. Given the significant importance of this market as a fundamental element in economic growth and activities, the Financial Sector Development Program (FSDP) formed the "Sukuk and Debt Instruments Market Development Committee", chaired by the Chairman of CMA, to serve as a sub-committee of the program. The aim is to unify efforts and set strategic directions to develop the sukuk and debt capital market, contributing to the goal of the Financial Sector Development Program to create an advanced capital market, particularly in relation to the sukuk and debt capital market.

Since its establishment, the Sukuk and Debt Instruments Market Development Committee has implemented several initiatives to deepen and enhance the liquidity of the sukuk and debt capital market. These initiatives have resulted in positive developments concerning the growth in the number of issuances and issuers, increased liquidity, and a more diverse investor base. The size of the corporate sukuk and debt capital market reached SAR 125 billion by the end of 2023, compared to SAR 95 billion by the end of 2019. Additionally, the number of companies issuing debt instruments has tripled by the end of 2023 compared to the end of 2019.

In ter​ms of liquidity, the market experienced rapid growth in the value of trades and the number of executed transactions, with a traded value of SAR 2.5 billion in 2023 compared to SAR 0.8 billion in 2019, marking a record number of executed transactions.

From his side, the CMA's Deputy Assistant of Financing and Investment, Fahad Mohammed bin Hamdan, stated that CMA aims to make the sukuk and debt capital market prosperous and encouraging for both governmental and non-governmental issuances. CMA seeks to develop its legislative and regulatory environment by providing modern investment mechanisms and products to attract and enable investments from both local and foreign investor groups.
Regarding the diversity of the investor base in the corporate sukuk and debt capital market, Fahad bin Hamdan noted that the share of individual investors rose from about 1% at the end of 2021 to approximately 12.5% by the end of 2023. This increase was due to the successful completion of a public offering of Sukuk in the fourth quarter (Q4) of 2022, which attracted over 125,000 individual investors, thereby supporting the diversification of the investor base in the domestic sukuk and debt capital market.

He added, "At the same time, the share of banks declined from roughly 60% at the end of 2021 to 48% at the end of 2023. The share of government entities also dropped by 7%, from 20% at the end of 2021 to 13% in 2023. Meanwhile, the share of investment funds increased from about 12% at the end of 2021 to 15% at the end of 2023. Regarding the number of executed transactions in the sukuk and debt capital market, both listed and unlisted, rose to 36,961 in 2023, compared to 3,722 in 2021, an increase of 893%.

Looking at the sectors issuing sukuk and debt instruments at the end of 2023, the financial sector emerged as the most active in using the sukuk and debt capital market as a financing channel, aligning with global market trends. It was followed by the energy sector and the public utilities sector.

Bin Hamdan emphasized that the Capital Market Authority will continue to develop the corporate sukuk and debt capital market in collaboration with the members of the Sukuk and Debt Instruments Market Development Committee and stakeholders. This will be achieved through the implementation of a portfolio of initiatives, including 16 strategic initiatives, aimed at enhancing the attractiveness and efficiency of the sukuk and debt capital market for issuers and investors and boosting its regional and international competitiveness. The focus will be on developing the legislative environment, incentives, and infrastructure to encourage issuers to issue sukuk and bonds locally. Additionally, efforts will be made to enhance trading in these capital and encourage investor participation. To measure the performance of the strategic initiatives, the CMA will monitor several strategic indicators, including the percentage of the volume of funds collected from the offering of Sukuk and debt instruments as a percentage of total public financing, the size of debt instruments as a percentage of GDP, debt instruments turnover, and the percentage of foreign ownership in debt instruments.  

Bin Hamdan concluded that various solutions will be pursued to overcome the challenges facing issuers, investors, and the infrastructure to fully benefit from the sukuk and debt instruments market opportunities for financing domestic companies. This will be achieved by launching several initiatives, such as easing regulatory frameworks for debt instrument offerings, listing, and registration; Introduce sustainable bonds regulatory framework and incentives; removing requirements for withholding tax on local companies' debt instrument issuances; organizing the sukuk and debt instruments market industry; and studying the feasibility of expanding the REPO framework to include DCM.
For more, you can view The Document for the Strategic Directions to Develop Sukuk and Debt Capital Market​

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The Capital Market Authority issued the book “The Market Story", which documents the journey and the history of the Saudi capital market through its three phases from 1926 to 2020. The book came in two editions: the comprehensive documentary edition covering the course of the capital market, and an illustrated documentary edition that displays photographs, official documents, and graphs.

This documentation effort adopted an academic methodology combining historical and descriptive approaches. It involved several steps, including collecting and reviewing hundreds of historical documents, conducting more than 80 interviews with personalities who contributed to and participated in the capital market journey, and many notable references.

Spanning a century, the Saudi capital market evolved through three phases. The first phase began with the founding of the Kingdom and highlighted the increasing role of the private sector in state development, the creation of Saudi joint-stock companies, and the proliferation of stock trading through unlicensed offices.

The second phase began with moves toward regulating the trading of stocks of Saudi joint-stock companies. This included the issuance of the Royal Decree in 1983, which restricted the trading of stocks of Saudi joint-stock companies to commercial banks, and the formation of a Ministerial Committee to regulate stock dealing activities.

This preparation set the stage for the third and final phase, marked by the issuance of the Capital Market Law in 2003 and the formation of the Capital Market Authority. The developments of 2004, and those that followed, positioned it strongly among regional and global markets.

It is worth mentioning that the Capital Market Authority has provided various channels and tools enabling readers to view the “Main Book" and the “Photographic Book". These are accessible through CMA's website.

For more information, please visit “The Market Story" page at the following link:

The Market Story

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Today, the Capital Market Authority (“CMA") issued the Quarterly Statistical Bulletin (QSB) for the fourth quarter (Q4) of 2023. This comes as part of the CMA's aim to provide statistical information and data about the Saudi capital market for participants, market analysts, and academic and student researchers. Additionally, the CMA aims to raise the level of transparency and disclosure, and to stimulate and develop investments in the capital market.

The QSB data showed that the number of Listed Companies on the main market (TASI) increased to 231 companies in Q4 of 2023, with an increase of 3.6% compared to 223 companies in the year-ago period. Meanwhile, the number of listed companies on the parallel market “Nomu" reached 79, an increase from 46 companies at the end of Q4 of 2022, marking a 71.74% year-on-year (Y-o-Y) increase.

The CMA approved the offering of four companies on the main market and eight companies on the parallel market during Q4 of 2023. Meanwhile, there are still 12 offering and listing requests for “TASI" and 43 requests for “Nomu" under study during the same period.

As for the value of ownership in the main market, foreign investments reached new historical highs, exceeding SAR 400.6 billion, an increase of 15.6% Y-o-Y in Q4 of 2023. This represents an approximately 5.6-fold increase since the Saudi capital market was directly opened to foreign investors in 2015, when it recorded SAR 72.15 billion.

The ownership percentage of qualified foreign investors (QFIs) represented 80% of foreign investments in 2023, totaling SAR 320.38 billion, an increase of 18.24%—i.e., about SAR 50 billion—compared to the same quarter in 2022.

Investment funds reached a new record high of 1,285 in Q4 of 2023, marking an increase of 36.55% Y-o-Y compared to 941 funds in the year-ago period. The number of public funds reached 291, while private funds reached 994, compared to 255 and 686, respectively, at the end of the year-ago period.

The number of subscribers in public and private investment funds exceeded 1.17 million,  a growth rate of 73.19%, setting a new record as the highest in history, compared to 677.2 thousand subscribers during the same period of the previous year.

The largest number of subscribers in both public and private funds was in the real estate sector; the subscribers of real estate investment traded funds (REITs) constituted 51% of the total in public investment funds, while subscribers to private real estate funds accounted for 66% of the total in private investment funds.

As for Corporate Governance, 94 General Assemblies, attended by more than 20,000 shareholders, were held in Q4 of 2023, discussing 1,248 items, of which only 23 items were rejected.

The number of Chairmen of the Boards of Directors of companies listed on the Saudi market reached 280, while the number of Non-Executive Vice-Chairmen reached 240, and the number of Executive Vice-Chairmen stood at 35. The number of Board Members of companies listed in the Saudi market reached 1,330 Non-Executive Members and 171 Executive Members.

Regarding the Financial Technology (FinTech) Companies, the number of investors in the Robo-advisory platforms amounted to 137,891 investors at a value of about SAR 724.40 million. A total of 99 institutional clients, 7,913 qualified clients, and about 211,800 retail clients benefited from the services of FinTech Companies.

The number of Sukuk offered through Debt Instruments Offering platforms amounted to 425 in Q4 of 2023, at a total value of SAR 543.8 million. The number increased by about 243% Y-o-Y, and the total value of the offered Sukuk increased by about 228% Y-o-Y.

The QSB provides a variety of data on the Saudi capital market, including Initial Public Offerings (IPOs), Equity, Debt Instruments, Investment Funds and data regarding Capital Market Institutions, Listed Companies and authorized Financial Technology (FinTech) Companies. In addition, a full chapter about Corporate Governance.

The QSB can be viewed via the following link:

Quarterly Statistical Bulletin Q4 2023​

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Today, the Capital Market Authority (“CMA") issued the Quarterly Statistical Bulletin (QSB) for the third quarter (Q3) of 2023. This comes as part of the CMA's aim to provide statistical information and data about the Saudi capital market for participants, market analysts, and academic and student researchers. Also, the CMA aims to raise the level of transparency and disclosure and stimulate and develop investments in the capital market.
The QSB data showed that the number of Listed Companies on the main market (TASI) reached 230 companies in Q3 of 2023, with an increase of 6%, compared to 217 companies in Q3 of 2022. Meanwhile, listed companies on the parallel market "Nomu" reached 67 companies in Q3 of 2023, with an increase of 76%, compared to 38 companies in Q3 of 2022.
The CMA approved the offering of four companies on the parallel market "Nomu" during Q3 of 2023. Meanwhile, there are still 5 requests in “TASI" and 41 requests in “Nomu" still under study during the same period.
As for the value of ownership in the main market, the value of the qualified foreign investors (QFIs) ownership reached SAR 290.07 billion in Q3 of 2023, with a hike of about SAR 10 billion or 3.5% year-on-year (Y-o-Y), when compared to SAR 280.24 billion in the year-ago period.
As for the investor's classification, according to the investment behavior; the percentage value of the institutional investors' ownership amounted to 96.5% in Q3 of 2023, compared to 96.27% in the year-ago period.
Investment funds recorded a new record high reaching 1,209 funds in Q3 of the current year, the highest in history, after an increase of 35.8% on an annual basis, when compared to 890 funds in the year-ago period.
The number of public funds reached 283 funds by the end of Q3 of 2023, while the number of private funds reached 926 funds, compared to 253 and 637 respectively by the end of the year-ago period.
The number of subscribers in public and private investment funds exceeded the one million mark for the first time in the history of the capital market, reaching more than 1.126 million subscribers at the end of the third quarter of 2023 compared to 677.4 thousand subscribers during the same period of the previous year, with a growth rate of 66%.
The largest number of subscribers in both public and private funds were in the real estate sector, as the subscribers of the real estate investment traded funds (REITs) represented 55% of the total subscribers in public investment funds, while the subscribers of the real estate funds represented 71% of the total subscribers in private investment funds.
As for Corporate Governance, 60 general assemblies, attended by more than 10,000 shareholders, were held in Q3 of 2023, discussing 561 items, of which only 6 items were rejected.
Regarding the Financial Technology (FinTech) Companies, the number of investors in the Robo-advisory platforms amounted to 119,215 investors at a value of about SAR 650.3 million. A total of 20 institutional clients, 5,057 qualified clients, and about 158,000 retail clients benefited from the services of FinTech Companies.
The number of Sukuk offered through Debt Instruments Offering platforms amounted to 311 in Q3 of 2023, at a total value of SAR 377.7 million. As per the number, they increased by about 500% (Y-o-Y), and as per the total value of offered Sukuk, they increased by about 325% (Y-o-Y).
The QSB provides a variety of data on the Saudi capital market, including Initial Public Offerings (IPOs), Equity, Debt Instruments, Investment Funds and data regarding Capital Market Institutions, Listed Companies and authorized Financial Technology (FinTech) Companies. In addition, a full chapter about Corporate Governance.
The QSB can be viewed via the following link:

Quarterly Statistical Bulletin Q3 2023

The Capital Market Authority (“CMA") and the General Commission for the Guardianship of Trust Funds for Minors and their Counterparts (“Wilayah") signed today a cooperation and coordination agreement today regarding the funds and securities in the capital market that fall under the jurisdiction of Wilayah authority as per Law of the General Commission for the Guardianship of Trust Funds for Minors and their Counterparts.

The signature ceremony, within the Capital Market Institutions Forum hosted by Riyadh, took place in the presence of His Excellency the Chairman of the Board of the Capital Market Authority, Mohammed bin Abdullah Elkuwaiz, and the Chairman of the General Commission for the Guardianship of Trust Funds for Minors and their Counterparts, Mr. Muhammad bin Abdullah Al-Aqla. The CMA was represented by the CMA Deputy for Market Institutions, Mr. Raed Ibrahim Al-Humaid, while Wilayah was represented by the Vice Chairman of Wilayah for Investment and Fund Development, Mr. Ahmed bin Abdulmohsen Al-Rumaih.

The Agreement aims to complete the procedures for counting all funds and securities owned by anonymous persons, and any new relevant securities provided that the same shall be followed by working on what concerns other classes within the duly competencies of Wilayah, by virtue of the Law of Wilayah and enabling Wilayah to practice its duly competencies towards the shares of the joint stock companies prepared for offering, whose owners have not been identified, located, or reached. The process will involve inventorying, categorizing, transferring, and managing the investment of funds and securities in several stages. Both authorities have agreed on the roles and responsibilities assigned to each party in the agreement

The Capital Market Authority stated, “This collaboration stems from the CMA's commitment to fulfilling its role in protecting the investments of all investor categories.", confirming that the CMA is continuously working on enhancing the investors' confidence by creating a fair and transparent investment environment based on procedures and rights that are clear for all capital market investors and participants.

While the General Commission for the Guardianship of Trust Funds for Minors and their Counterparts, emphasized that the agreement aligns with Wilayah powers stipulated in Article (2) of its Articles of Association (AOA) which set out Wilayah competences in managing the funds of those have no legitimate heirs, absentees, missing persons or anonymous persons. Also, the Agreement comes in line with Wilayah objectives to preserve, manage, and grow the assets under its guardianship, following an approved investment strategy.

The value of foreign investments in the Saudi capital market has increased by 300% over the past five years, specifically from 2018 to the end of 2022, reaching SAR 347.01 billion by the end of the period. This constitutes 14.2% of the total value of the free float in the main market, compared to SAR 86.86 billion in 2018, which represents 3.77% of the total value of free float shares in the main market for that year.

In this regard, the Capital Market Authority's (“CMA's") Deputy of Listed Companies and Investment Products, Abdullah Mohammed Binghannam reported that the CMA aims to position the Saudi capital market among the leading markets regionally and internationally. Diversifying the investor base is critical to reaching such a ranking. The CMA has made major efforts in recent years to increase the attractiveness of the Saudi capital market to foreign investors and to encourage their entry and participation in the trading and offerings, as well as in the general assemblies of firms. Since allowing foreign investors to directly invest in the capital market in 2015, the Saudi Capital Market has evolved from a local market to one where the foreign investor participates in daily trading at rates exceeding 17%, compared to less than 4% before. The foreign ownership value now exceeds SAR 347 billion.

Foreign investment in the main capital market has increased significantly, reaching unprecedented historic levels. From 2018 to 2022, net foreign investment in the main market exceeded SAR 180 billion. The contribution of foreign investors to company offerings has increased, and foreign investor ownership in the Saudi debt instruments market has increased more than tenfold since the debt instruments market was opened to all categories of foreign investors without restrictions by the end of 2020. Since the Saudi capital market joined the major emerging market indexes in 2019, the rate of increase in foreign investments throughout 2022 has been the highest. This development has contributed to QFI ownership increasing to 1877%, reaching SAR 271.23 billion by the end of 2022, up from SAR 13.7 and SAR 134.48 billion in 2018 and 2019, respectively. By the end of the preceding year, QFIs accounted for 78% of total foreign investment.

According to the CMA's Deputy of Listed Companies and Investment Products, the anticipated positive effects of raising foreign investors' share of the capital market and improving their cash flows go beyond that. They stimulate the local economy by attracting new foreign capital to finance the growth of listed firms, as well as offering knowledge and expertise to local companies by strengthening the foreign investor's position in them.

Binghannam added that the CMA exerted strenuous efforts during the previous period to increase foreign investors' participation in the Saudi capital market. Among the said prominent efforts are allowing foreign investors to directly invest in debt instruments and approving Instructions for International Central Securities Depositories, a step that contributes to facilitating procedures for attracting foreign investments to Sukuk and debt instruments domestic market. In addition, the recent approval of the Rules for Foreign Investment in Securities. These Rules were methodically and gradually facilitated to minimize the differences between QFIs and other investor categories in the Saudi market, facilitate procedures for foreign investors' entry to the Saudi capital market, and enable broader access to other investment types. The approved Rules can be reviewed through the following link: (Link)

The Deputy concluded that CMA's strategic plan, along with its main pillars, aim to raise the Saudi market's status and global classification in a way that shall contribute to raising the attractiveness and efficiency of the capital market and enhancing its competitiveness regionally and internationally. One of the strategic objectives of the CMA's plan is to raise the attractiveness of the market to foreign investors.​

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The Capital Market Authority's (CMA's) Board issued a resolution to recompose the Advisory Committee for its tenth term, which includes eleven part-time members, representing market participants, experts, specialists, and experienced academics.

In its tenth term, the Committee will work towards providing recommendations and suggestions for any topics presented by the CMA Board to be studied in addition to discussing the topics and suggestions of the market participants and monitoring their reactions to any new changes or policies to be adopted by the CMA. As well as expressing opinions and recommendations on anything that would contribute to market development and protection of securities investors.

The Committee will exercise its tasks as an advisory body for the CMA Board. It is comprised of a number of part-time members including the following: His Excellency Dr. Nabeel Koshak - CEO of Saudi Venture Capital Company (SVC), Dr. Waleed Abdullah Al-Mogbel - Managing Director and CEO of Al-Rajhi Bank, Dr. Abdulwahab AlGahtani - Associate Professor at the King Fahd University of Petroleum and Minerals and economic writer, Dr. SULTAN ALMASOUD - Partner, The Law Firm of Dr. Sultan Almasoud in association with Shearman & Sterling LLP, Eng. Omer Abdullah Alnomany - CEO of Arabian Internet and Communications Services Co., Mr. Adel Al-Ateeq - CEO of Awaed Financial Assets Company, Ms. Khlood Abdulaziz Aldukheil - CEO of Erteqa Financial Company, Mr. Rashed Ibrahim Sharif - CEO of SNB Capital, Mr. Abdulaziz Alomran - CEO of Impact, Mr. Basem Alsallom - Managing Director Sure Global Technology, and Mr. Saleh Abdullah Alyahya - Partner at Alluhaid & Alyahya Chartered Accountants (“LYCA").

The CMA's Board expressed its gratitude to the members of the Advisory Committee in its ninth term who ended their membership term for their distinguished efforts, tangible contributions, and their transparent and unbiased opinions and recommendations.

It is worth mentioning that the CMA's Board had previously issued a resolution on 2/11/1434H (corresponding to 8/9/2013) to approve the CMA's Advisory Committee Regulations pursuant to the Capital Market Law (CML). The main purpose of this resolution is to enable effective communication between the CMA and all different market participants and create a regulated mechanism for such interaction in order to support the CMA in fulfilling its functions and achieving its goals.

A brief overview of the members of the Advisory Committee in its tenth term can be viewed on the CMA's website via the following link: (Here).

The Capital Market Authority (CMA) announced today the deadline for considering FinTech ExPermit applications within the seventh review of the Fintech Experiment Permit. The applications received until Thursday, November 23 of this year will be included in the reviews of the current round, indicating that it will evaluate applications received after this date within the next round.

The CMA encouraged everyone who is interested to participate and apply for the FinTech ExPermit, provided that all criteria needed to qualify the FinTech product are met. Among the criteria needed is that the product is from the securities activities and that the product is at a sufficiently advanced stage of development to mount a FinTech experiment.

The above confirms the CMA's pivotal role in encouraging the FinTech sector in the capital market since the launch of the FinTech Lab in 2018, as the number of FinTech ExPermits granted by the CMA's Board amounted to 49 permits so far. Aiming to provide various innovative models in the capital market that yield several tangible economic benefits, including diversifying the available investment tools for various segments of investors and enhancing the attractiveness of financing through the capital market.

It is worth mentioning that the FinTech companies permitted in the FinTech Lab have contributed with significant results since their commencement of business until the first half of the year, as the funds invested through Equity Crowdfunding platforms and Debt Instruments Offering platforms exceeded SAR 1.4 billion, which reflects their effective role in providing appropriate financing solutions for building and expanding economic entities through all stages. The investment and real estate funds distribution platforms facilitated the attraction of a large segment of investors to invest in funds licensed by CMA, as the total value of the units distributed via platforms exceeded SAR 1.6 billion. The Robo-advisory model contributed to enabling investors' access to innovative instruments to manage their investments, where the value of the asset under management (AUM) via the Robo-advisory platforms exceeded half a billion Saudi Riyals.

The applications for FinTech ExPermit are received all around the year to be evaluated via batches and announced on the CMA's website. This comes as a result of the CMA's regulatory enablement efforts in the capital market aimed at positioning the Kingdom as a leader in the FinTech industry and achieving the objectives of the Financial Sector Development Program (FSDP) in line with the Saudi Arabian Kingdom's Vision 2030.

The FinTech Lab aims to attract more diversification of innovative business models in the capital market. The CMA encourages innovators to make the most of the Kingdom's FinTech ecosystem, which is distinguished by its high attractiveness and rapid development, allowing companies to innovate in the capital market and provide appropriate investment and financing services for all market participants, in light of the concerted efforts under the umbrella of the Financial Sector Development Program.

For more information about the Financial Technology Experimental Permit Instructions, please visit the following link:

Financial Technology Experimental Permit Instructions

To obtain information about the FinTech Lab and Application, please visit the following link:

FinTech Lab

Today, the Capital Market Authority ("CMA") issued the Quarterly Statistical Bulletin (QSB) for the second quarter (Q2) of 2023. This comes as part of the CMA's aim to provide statistical information and data about the Saudi capital market for participants, market analysts, and academic and student researchers. Also, the CMA aims to raise the level of transparency and disclosure and stimulate and develop investments in the capital market.

The QSB data showed that the number of Listed Companies on the main market (TASI) reached 228 companies at the end of Q2 of 2023, with an increase of 6%, compared to 215 companies in Q2 of 2022. Meanwhile, Listed Companies on the parallel market "Nomu" reached 62 companies at the end of Q2 of 2023, an increase of 100%, compared to 31 companies in Q2 of 2022.

The CMA approved the offering of two companies in the main market (TASI) and 18 companies in the parallel market “Nomu" during Q2 of 2023. There are 4 requests in “TASI" and 45 requests in “Nomu" still under study during the same period.

As for the value of ownership in the main market, the value of qualified foreign investors (QFIs) ownership reached SAR 298.45 billion at the end of Q2 of 2023, with a hike of SAR 14.43 billion or 5.1% year-on-year , compared to SAR 284.01 billion in the year-ago period.

As for the investor's classification, according to the investment behavior; the percentage value of the institutional investors' ownership amounted to 96.23% at the end of Q2 of 2023, compared to 96.66% in the year-ago period.

The number of Investment Funds hit a new record and increased to 1,130 funds at the end of Q2 of the current year, the highest in history, after an increase of 34.68% Y-o-Y, when compared to 839 funds in the year-ago period.

The number of public funds reached 276 at the end of Q2 of 2023, while the number of private funds reached 854 funds, compared to 254 and 585 respectively in the year-ago period.

The number of public and private investment funds' subscribers hiked by 33.5% to 901,896 in Q2 of 2023, compared to 675,465 in Q2 of 2022.

The biggest number of public and private investment funds' subscribers were in the real estate sector, as the subscribers of the real estate investment traded funds represented 56.90% of the total subscribers in public investment funds, while the subscribers of the real estate funds represented 71.02% of the total subscribers in private investment funds.

As for Corporate Governance, 262 general assemblies, attended by more than 75k shareholders, were held only in Q2 of 2023, discussing 5,535 items, of which only 76 were rejected.

The number of non-executive board chairmen in listed companies reached 268, with 239 non-executive vice chairmen and 28 executive vice chairmen. The number of board members in listed companies reached 1334 non-executive board members, and 161 executive board members.

Regarding the Financial Technology (FinTech) Companies, the number of authorized FinTech Companies in the Equity Crowd Funding platforms is 3 companies at the end of Q2 of 2023. The number of Robo Advisory portfolios reached 193,104 and their value amounted to SAR 541.80 million.  A total of 22 institutional clients, 3961 qualified clients, and about 235,000 retail clients benefited from the services of FinTech Companies.

Finally, QSB provides a variety of data on the Saudi capital market, including Initial Public Offerings (IPOs), Equity, Debt Instruments, Investment Funds and data regarding Capital Market Institutions, Listed Companies and authorized Financial Technology (FinTech) Companies. In addition, a full chapter about Corporate Governance.

The report can be viewed via the following link:

Statistical Bulletin Q2 2023

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The General Secretariat of the Committees for Resolution of Securities Disputes (GS-CRSD) announced the issuance of the CRSD's decision accepting a request to register a class action lawsuit filed by an investor against some members of the Board of Directors and employees in Mohammad Al Mojil Group, to claim compensation for the damages suffered as a result of the announcements issued by the company on 22/02/2012 and 21/04/2012, which created a false and misleading impression regarding the company's financial position during that period.

In this regard, the CMA would like to indicate to traders and investors in the Saudi capital market that any person who had purchased the company's share after announcing on 22/02/2012 its annual financial results for the financial period ending on 31/12/2011, and kept them until the suspension of trading the company's share in the Saudi Capital Market "Tadawul" on 22/07/2012, has the right to submit a request to the CRSD to join the said class action lawsuit provided that it is submitted within (90) days from the date of this announcement.

On April 27, 2020, CMA announced the issuance of the final decision of ACRSD in the class action filed by one investor against persons responsible for violations committed in Muhammad Al-Mojil Group (during the company's IPO phase), while announcing on May 31, 2021, the issuance of the ACRSD final decision in the class action lawsuit filed by an investor against persons responsible for violations committed in Mohammad Al Mojil Group (during the period after the company's IPO).

Furthermore, the CMA confirms that it is keen to enforce the Capital Market Law and its implementing regulations to assure an advanced and stable capital market that achieves just, sufficient and transparent security trading. The CMA also assure that the protection of investors in the capital market against unjust and inappropriate practices which include fraud, deceit, cheating and manipulation come within its top priorities. The CMA is constantly working to provide appropriate means and capabilities for investors to exercise their rights, and organize and develop procedures that assure limiting the risks connected to securities dealings, as well as facilitating litigation procedures for securities dealers and reduce litigation costs, all in a manner that ensures those affected receive their compensation as quickly and easily as possible, aiming to achieve investor protection and reduce risks of investment in the capital market, as well as to enhance its attractiveness.

Details of the announcement can be found published on the website of the GS-CRSD, via the following link:

Announcement of the General Secretariat of CRSD

It is worth mentioning that the CMA took the initiative to facilitate the procedures of requesting to join the class action lawsuit by creating an electronic link on the CMA's website, making it easier for the affected investors who meet the conditions to submit their requests without the need to personally come to the headquarters of the CMA or the GS-CRSD.

Submitting a request to join the class action can be done using the following link:

Request to Join the Class Action Lawsuit

CMA confirms that all investors outside the category mentioned in the GS-CRSD announcement have the right to file an individual claim, provided that this is preceded by filing a complaint with CMA via the link:

File a Complaint​

The Capital Market Authority (CMA) announced that the Committees for Resolution of Securities Disputes (CRSD) issued two final decisions convicting three individuals of violating the Capital Market Law as well as violating the Market Conduct Regulations. The convicted individuals were obligated to pay the total amount of illegal gains which reached more than (115) million Saudi Riyals, in addition to imposing financial sanctions upon them amounting to (2.45) million Saudi Riyals.

The CMA indicated that the Appeal Committee for Resolution of Securities Disputes (ACRSD) issued its first final decision convicting each of: Sultan bin Abdulaziz bin Abdullah Albanyan, Abdullah bin Abdulaziz bin Abdullah Albanyan and Fahad bin Abdulaziz bin Abdullah Albanyan, for violating Article (49/a) of the Capital Market Law, and obligating them to pay the total amount of illegal gains that reached to (60.74) million Saudi Riyals and imposing financial sanctions amounting to (300) thousand Saudi Riyals, due to performing a series of procedures and transactions represented in making financial and share transfers as well as special trades on the shares of Al Kathiri Holding Co., aiming to hide their ownership percentage in the Company, hence resulting in the creation of an untrue impression regarding the number of shares available to the public, during the period between 30/05/2019 and 10/10/2019, prior to moving the Company to the main exchange market on 03/11/2019. Such act led to affecting the share price on the next day of the Company's announcement that it had submitted to be moved to the main exchange market, as such acts and practices created a false and misleading impression regarding the security of the Company.  

On the other hand, the ACRSD convicted in its second final decision Fahad bin Abdulaziz bin Abdullah Albanyan of violating Article (49/a) of the Capital Market Law, as well as Article (2) of the Market Conduct Regulations, when trading in the shares of the following companies: Naseej International Trading Co., Saudi Cable Co., National Metal Manufacturing and Casting Co., Tihama Advertising and Public Relations Co., Red Sea International Co., Saudi Fisheries Co., Ash-Sharqiyah Development Co., Allianz Saudi Fransi Cooperative Insurance Co., Abdullah Saad Mohammed Abo Moati for Bookstores Co., Al-Omran Industrial Trading Co., Raydan Food Co. and Sumou Real Estate Co., and obligating him to pay the total amount of illegal gains that reached (55.04) million Saudi Riyals, and imposing a financial sanction upon him amounting to (2.15) million Saudi Riyals, during the period between 15/01/2019 and 25/11/2020. His violation is represented in his act through his portfolio of entering purchase orders aiming to affect the share price of the abovementioned companies, and entering purchase orders aiming to achieve high bid closing price. Such acts and practices represent fraud and manipulation, and created a false and misleading impression regarding the securities of the abovementioned companies.  

In addition to the financial sanctions, both decisions included the imposition of another sanction on Fahad bin Abdulaziz bin Abdullah Albanyan, that stipulate banning him from trading through purchase of shares in companies listed in the Saudi Exchange for himself or on behalf of others, excluding trading through investment funds with Authorized Persons, for a period of Three years, according to the first decision. Another ban was issued against him from trading through purchase of shares in companies listed in the Saudi Exchange for himself or on behalf of others for a period of One year, according to the second decision.

The CMA stated that the two ACRSD final decisions came as a result of joint coordination and cooperation between the CMA, the Public Prosecution and the relevant security authorities, and in light of the public penal case filed by the Public Prosecution which was referred to it by the CMA against a number of violators.

In this regard, the CMA stresses on the importance of what investors' confidence represents in the growth and prosperity of the financial market. The CMA works continuously to monitor any behavior that violates the Capital Market Law, its implementing regulations and any regulations that the CMA is charged to enforce, find the perpetrators, and complete the necessary procedures to impose deterrent penalties against them. It is within the CMA's efforts that aim at creating an investment environment that is attractive to all categories of investors and safe from unfair or improper practices that involve fraud, deception, misrepresentation, misleading or manipulation. The CMA also calls upon all market participants to consider illegal practices as a criminal offense, and perpetrators are subject to legal accountability and the imposition of penalties stipulated in the regulations that the CMA is competent to enforce.

The CMA also stresses that it will not hesitate to pursue financial market manipulators by monitoring their transactions based on its powers in accordance with the Capital Market Law, and using its advanced technical means that enable it to observe all transactions and monitor suspicious cases, and take the necessary legal measures in accordance with laws and regulations, in addition to coordinating with security authorities, each according to their powers, to track down anyone who attempts to manipulate or practice deception  in the exchange market. This comes to achieve the CMA's objectives towards enhancing the efficiency of the exchange market, protecting its dealers and ensuring that they are not deceived or manipulated.

Furthermore, any person affected by these violations in this case is entitled to file a compensation claim (as individual or class action) with the CRSD against the convicted individuals for the damage he/she suffered from due to these violations, provided that such claim is preceded by a complaint filed  with the  CMA on this regard, via the following link: (File Complaint). However, the General Secretariat of the Committees for Resolution of Securities Disputes (GS-CRSD) will announce to the public on its website in case of registering any class action in order to enable the rest of investors affected by such violations to apply to the CRSD to join the class action.

The CMA indicated that the GS-CRSD announced to the public on its website the identities of the violators after proving the violations and penalties, and after issuing the two final decisions of the ACRSD against who violates the laws of the capital market and its implementing regulations. The details of the two decisions can be viewed through the following links:

Announcement of the GS-CRSD – First Decision (click here)

Announcement of the GS-CRSD – Second Decision (click here)​​

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The CMA Deputy of Market Institutions, Bander Sulaiman Alayed, reported that the capital market institutions authorized by the Capital Market Authority (“CMA") achieved a net income of SAR 6.1 billion with a 29.8% increase by the end of 2022 (Highest in history), compared to SAR 4.7 billion in 2021. Such a leap was achieved at the time when the CMA was continuing its comprehensive development plan in full cooperation with the capital market system.

The CMA is laying down the bases and rules regulating the market institutions to ensure investors' protection and that the institutions are fully bearing their liabilities. The above is a clear indication of the effective role the capital market institutions play in the Saudi financial sector, which the Kingdom pose great importance within the framework of the Kingdom's Vision 2030, Alayed explained.​

The capital market institutions profits boomed due to the rise of revenues to 26% in 2022, reaching more than SAR 12 billion (Highest record in the capital market institutions' history), compared to 2021. Asset management revenues represented the biggest ratio of the capital market institutions' aggregate revenues at 33.64%, followed by dealing activity at 19.67%, investment at 16.45%, and investment banking at 9.71%. The remaining ratios were divided among other revenues, advice, and custody, Alayed reported.

The CMA Deputy of Market Institutions explained that the number of portfolios managed by the capital market institutions hit a record, reaching 37,021 portfolios by the end of 2022 (Highest record in the capital market institutions' history) with an increase of about 1204% compared to the end of 2021 (2839 portfolios). The said high record is due to the  increased portfolios of one of the capital market institutions that launched its business recently. 

In addition, Alayed reported that Local shares category acquired the biggest stake of asset values managed by the authorized capital market institutions in the Discretionary Portfolio Management (DPM) at 45.61% with SAR 120.97 billion by the end of 2022, followed by the investment funds category at 23.48%. The stake in international shares, debt instruments, and other investment categories reached 30.91%.

Regarding the CMA's role in regulating capital market institutions, Alayed stated that the CMA established the Capital Market Institutions Regulations to govern the legal form of the institutions. In which case, CMA stipulated that in order to engage in security business, applicant must be established in the Kingdom. Also, to engage in dealing, custody, and managing business, the applicant must be a subsidiary of a local bank; a joint stock company; a subsidiary of a Saudi joint stock company that is engaged in financial services business; or a subsidiary of a foreign financial institution that is licensed under the Banking Control Law.

The applicant may be established in the Kingdom by any legal form to apply for a license to conduct arranging or advising in securities business. The paid up capital of the applicant must not be less than SAR 50 million to have a license for conducting dealing and custody business, and SAR 20 million for managing investments and operating funds; and a capital that covers the expected expenses for a year for managing investments, Alayed concluded.

The Kingdom of Saudi Arabia has continued its progress in the competitiveness indicators related to the financial market to achieve the third position among the most competitive countries on the G20 nations' level, according to the IMD World Competitiveness Yearbook for 2023. The Kingdom advanced seven ranks, compared to its standing in 2022.

The Kingdom ranked first in the Corporate Boards index among G20 nations, ranked second in the capital markets index, stock market capitalization index (as a percentage of GDP), shareholders' rights index and venture capital index. The Kingdom also ranked third in the stock market index, and fifth in the index evaluating the ability of stock markets to provide adequate financing to companies.

Further, the Kingdom ranked third globally in the stock market capitalization index (as a percentage of gross domestic product), advancing over other countries like Japan, India, Germany, the United Kingdom, China, and the United States of America. The Kingdom ranked third as well in the venture capital index, exceeding countries like India, the United Kingdom, Germany, Japan, and China. As for the stock market index (% change on index), the Kingdom ranked fifth, advancing over countries like India, the United States of America, Japan, China, Germany, and the United Kingdom.

On Arab countries level, the rank of the Kingdom showed upward strides this year in six indicators, while maintaining its positions in two others. At the same time, the Kingdom achieved first place in nine of the twelve indices among Arab countries participating in the report, and ranked second in one index, while ranked third and fourth, respectively, in the remaining indices.

The Kingdom's progress in the said indices and the achievement of advancing stands exemplifies the CMA's continued efforts and steps during the previous period to improve and develop the capital market sector by implementing relevant global best practices. Among the said efforts and steps, the CMA Board's approval of the Securities Exchanges and Depository Centers Regulations, Capital Market Institutions Regulations and the Instructions for Shariah Governance in Capital Market Institutions, as well as CMA Board's review of the Implementing Regulations of the Companies Law for Listed Joint Stock Companies to promote the regulatory environment of the companies, to facilitate the legal procedures and requirements to instigate the business environment and support investment, to achieve balance between stakeholders, and to provide an efficient and fair framework for corporate governance, in addition, to dedicate the institutional work and to participate in economic entities' sustainability.

The Capital Market Authority (“CMA") reported that the value of compensation for those affected by errors and violations in securities disputes leapt 4275% to reach SAR 2.2 billion during the last 4 years, as the value in 2022 reached SAR 1.75 billion, compared to SAR 40 million in 2019, before the value hiked to SAR 93 million in 2020, then to SAR 367 million in 2021. The total number of compensated persons reached 2,352 persons during the last 4 years, as the number reached 1,294 persons in 2022, an increase of 2057% more than the recorded total number in 2019 that reached only 60 persons, then increased to 445 persons in 2020 and reached 553 persons in 2021.

The size of compensation in the class action suits climbed to SAR 1.225 billion in 2022, representing 70% of total compensations awarded finally (resolution and appeal). Also, the compensation against violators of the Market Conduct Regulations and Article (49) of the Capital Market Law surged to reach SAR 323.5 million in 2022, an increase of 18% compared to 2021, which recorded SAR 274.4 million. Further, the value of compensation against persons carrying out securities business without authorization hiked 202% to reach SAR 53.2 million in 2022, compared to SAR 17.6 million in 2021. The value of compensation against listed companies increased to SAR 52.9 million in 2022, an increase of 300%, compared to 2021. Also, the value of compensation against market institutions amounted to SAR 37.5 million in 2022, while other compensations recorded SAR 59.7 million by the end of 2022.

In this regard, the Communication & Investor Protection Division General Director, Ali Bin Sulaiman Aldakheel, reported that the increase in the pace of compensation of those affected by errors and violations in securities disputes comes in line with the collaboration efforts of the concerned parties, enabling public and private rights, and the coordination efforts between CMA's board and the General Secretariat of the Committees for Resolution of Securities Disputes (GS-CRSD), which resulted in reducing the litigation period from more than 2 years, before 2019, to less than 8 months today. Also, the class action projects, developed for the first time in the Kingdom at CRSDs, to be the main method to enable investors to collect their rights via the judiciary system in a more efficient way and with fewer costs and efforts. The record hike in the value of compensation and number of compensated persons comes in line with CMA's continuous devotion to achieve the principle of justice and to raise the confidence of investors in the capital market to attract more investments.

CMA has developed an updated technical system for investor protection via a website designated for this purpose to submit complaints, reports, requests for joining class actions or requests for financial compensation for affected investors who were awarded a compensation decision issued by CRSD.

​Today, the Capital Market Authority (“CMA") issued the Quarterly Statistical Bulletin (QSB) for the first quarter (Q1) of 2023. Through this bulletin, the CMA aims to provide statistical information and data about the Saudi capital market that is important for participants, market analysts, and academic and student researchers. Also, the CMA aims to raise the level of transparency and disclosure and stimulate and develop investments in the capital market.

The QSB provides a variety of data on the Saudi capital market, including Initial Public Offerings (IPOs), Equity, Debt Instruments, Investment Funds and data regarding Capital Market Institutions, Listed Companies and authorized Financial Technology (FinTech) companies. In addition, a full chapter about Corporate Governance.

The QSB data showed that the number of Listed Companies on the main market (TASI) reached  224 companies in Q1 of 2023, an increase of 4.2% compared to 215 companies in Q1 of 2022. Meanwhile, Listed Companies on the parallel market "Nomu" reached 54 companies in Q1 of 2023, an increase of 116% compared to 25 companies in Q1 of 2022. Furthermore, a surge of 8 companies equating to growth of 17.4% in the parallel market, compared to Q4 of 2022, when the number of companies was 46.

The CMA approved the offering of two companies in the main market and six companies in the parallel market “Nomu" during Q1 of 2023. There are 5 offers and listing requests in the main market, and 61 in “Nomu" still under study during the same period.

As for the value of ownership in the main market, the value of the qualified foreign investors' (QFIs) ownership reached SAR 273.54 billion in Q1 of 2023, with a hike of 1% from Q4 of 2022 that reached SAR 270.96 billion.

As for the investor's classification, according to the investment behavior; the percentage value of the institutional investors' ownership amounted to 96.18% in Q1 of 2023, compared to 96.30% in the year-ago period.

The number of Investment Funds hit a new record and increased to 1076 funds, the highest in history, after an increase of 35.3% in Q1 of 2023 when compared with the same period of 2022, including 260 public funds and 816 private funds, compared to 253 and 542 funds respectively in Q1 of 2022.

The number of public and private investment funds subscribers climbed to 53.2% to reach 792,824 subscribers in Q1 of 2023, compared to 517,346 subscribers in Q1 of 2022.

The biggest number of public and private investment funds subscribers were in the real estate sector, as the subscribers of the real estate investment traded funds represented 51.6% of the total subscribers in public investment funds, while the subscribers of the real estate funds represented 76.7% of the total subscribers in private investment funds.

As for Corporate Governance, 44 general assemblies, attended by 11,047 shareholders, were held in Q1 of 2023, discussing 305 items, of which only 8 items were rejected. The number of non-executive board chairmen in listed companies reached 252, with 219 non-executive vice chairmen and 30 executive vice chairmen, 1252 non-executive board members, and 156 executive board members.

Regarding the Financial Technology (FinTech) Companies, the number of authorized FinTech Companies in the Equity Crowd Funding platforms amounted to about 5 companies in Q1 of 2023, and the aggregated funds through Equity Crowd Funding platforms reached SAR 2.8 million. A total of 29 institutional clients, 2,917 qualified clients, and about 83,000 retail clients benefited from the services of FinTech companies.

The report can be viewed via the following link:

Statistical Bulletin Q1 2023

The Capital Market Authority (“CMA") has released its annual report for the financial year 2022, showcasing a range of strategic objectives achieved and unprecedented records hit across various regulatory, legislative, and developmental aspects.

The report shows that the Saudi capital market ranked first among G20 markets in the shareholder rights index and stock market capitalization index, as a percentage of gross domestic product, in 2022. Furthermore, the Kingdom rose in the IMD World Competitiveness Yearbook ranking from 32nd place by the end of 2021 to 24th place by the end of 2022, advancing 8 ranks. The yearbook also cited the Kingdom moving upward in 9 out of 12 indicators relevant to the capital markets and maintaining its position in 3 indicators, compared to the previous year.

According to the CMA annual report of 2022, the pace of public offerings in the Saudi capital market accelerated to hit a record, as a portion of 37 companies' shares were offered for public offering in the Main and Parallel markets valuing at SAR 40 billion. In the same context, shares of 13 companies were registered for the purpose of direct listing in the parallel market. The total number of listings during the year 2022 reached 49.

On the level of foreign ownership, 2022 saw record levels of net foreign investment in the Main Market, reaching about SAR 184 billion in the same year, while foreign investors' ownership value in the Main Market amounted to SAR 347 billion, representing 14% of the free float total value by the end of 2022. The foreign investment increasing rate during 2022 became the highest since the Saudi market joined MSCI Emerging Markets Index in 2019.

During the same year, CMA has approved three new implementing regulation i.e. Securities Exchanges and Depository Centers Regulations, in addition the Instructions on the Direct Financing Investment Funds and the Instructions for Shariah Governance in Capital Market Institutions. The CMA also amended seven relevant implementing regulations, rules, and instructions.

On the inspection level in accordance with CMA competencies; inspections conducted featured 91 licenses, divided into 53 cycle inspections, and 38 cause inspections. On the control level; the extensive search work of suspicion of violation of trading climbed 17.7% to reach 859 cases in 2022, compared to 730 cases in 2021, resulting in 11 suspected cases and 152 control inquiries.

The Annual Report also reported the increase of received reports to 1,653 in 2022, compared to 1,360 reports in 2021. Received complaints dipped 15.7% to reach 12,118 complaints, of which 11,354 were settled and 512 complainers were informed to head to the Committee for the Resolution of Securities Disputes (CRSD), while 252 are under study.

On the judicial level, the amounts of awarded compensation issued by final decisions by the CRSD amounted to SAR 1.75 billion, with an increase of 377.7% when compared to 2021.

The CMA has granted 17 permits for 4 financial technology (FinTech) experiment models, including 7 permits granted for models of investment and real estate funds distribution, 5 permits for Robo-advisory, 4 permits for offering and investment in debt instruments and one permit for equity crowd funding, bringing the total number of existing permits to 29 by the end of 2022.

From his side, His Excellency Mr. Mohammed bin Abdullah Elkuwaiz, Chairman of the Capital Market Authority praised the achievements of the Saudi capital market in the previous year. Elkuwaiz reported that the said records and milestones were achieved despite the economic challenges that shaded all global capital markets during 2022, the most important of which was interest rates raising globally and locally. Elkuwaiz stressed that such achievements are the reflect of strenuous efforts and dedication of all capital market system and employees aiming to place the Kingdom at its deserved position and achieve the CMA's strategic objectives to rank Saudi market as the leading market in the Middle East and place it among the top 10 capital markets globally, in line with the Kingdom's Vision 2030.

In the CMA's Annual Report for 2022, the Chairman of CMA commented, stating, “the CMA is creating the potential required to provide a suitable and encouraging environment for the capital market system to positively reflect on the Kingdom's economy". “CMA's sharing of data, information, and reports shall be reflected on the capital market by increasing transparency levels which shall, in turn, reflects on encouraging investment and promoting confidence of the Saudi capital market", Elkuwaiz added.

Today, the Capital Market Authority (“CMA”) issued the Quarterly Statistical Bulletin (QSB) for the fourth quarter (Q4) of 2022. Through this bulletin, the CMA aims to provide statistical information and data about the Saudi capital market that is important for investors, market analysts, and academic and student researchers. Also, the CMA aims to raise the level of transparency and disclosure and stimulates and develop investment in the capital market.

QSB provides a variety of data on the Saudi capital market including Initial Public Offerings (IPOs), Equity, Debt Instruments, and Investment Funds in addition to data regarding Capital Market Institutions, Listed Companies and authorized Financial Technology (FinTech) companies, and further, a full chapter about Corporate Governance.

QSB data showed that the number of Listed Companies on the main market (TASI) reached to 223 companies, with an increase of 6% in Q4 of 2022, compared to 210 companies in Q4 of 2021. While Listed Companies on the parallel market “Nomu” reached to 46 companies, with an increase of 229%, compared to 14 companies in the same period of 2021 or a surge of 8 companies at a rate of 21% of the parallel market listed-companies in Q3 of 2022, as the companies' number was then 38 only.

The CMA approved the offering of 7 companies in the main market and 20 companies in “Nomu” during Q4 of 2022. 4 offers and listing requests in the main market, in addition to the other 79 in “Nomu”, are still under study during the same period.

As for the value of ownership in the main market, the value of the qualified foreign investors' (QFIs) ownership surged to 10% at SAR 270.97 billion in Q4 of 2022, compared to SAR 245.9 billion in Q4 of 2021.

As for the investor's classification, according to the investment behavior; the value of the institutional investors' ownership amounted to 96.20% in Q4 of 2022, compared to 95.84% in Q4 of 2021.

The number of Investment Funds hit a new record and increased to 941 funds, the highest in history, after an increase of 25% in Q4 of 2022, when compared with the same period of 2021, including 255 public funds and 686 private funds, compared to 256 and 495 funds respectively in Q4 of 2021.

The number of the public and private investment funds subscribers amounted to 26% to reach 677,155 in Q4 of 2022, compared to 536,405 by the same period of 2021.

The biggest number of public and private investment funds subscribers were in the operating funds in the real estate sector, as the subscribers of the real estate investment traded funds represented 46% of the total subscribers in public investment funds while the subscribers of the real estate funds represented 73% of the total subscribers in private investment funds.

The asset value of Portfolios under Management raised at about 13% reaching to SAR 265.22 billion in Q4 of 2022, compared to SAR 234.78 billion in Q4 of 2021. The local Equity represented about 46% of the total assets of the Portfolios under Management reaching to SAR 120.97 billion in Q4 of 2022, as the local Equity in the portfolios decreased at about 10%, compared to SAR 135.03 billion in the same period of 2021. The Investment Funds stake represented 23% with an increase of 54% reaching to SAR 62.28 billion, compared to SAR 40.54 billion in Q4 of 2021.

The Capital Market Institutions licensed by the CMA hit a record rate (the highest in history) of about 61.5% to reach SAR 2.1 billion as net profit in Q4 of 2022, compared to SAR 1.3 billion in Q4 of 2021.

The Capital Market Institutions revenues climbed 30% reaching to SAR 3.82 billion in Q4 of 2022 (highest record in the history of Capital Market Institutions), when compared to Q4 of 2021. The asset management revenues represented the biggest ratio of the aggregate revenues of the Capital Market Institutions at 30.48%, followed by the investments activity at 26.15% and investment banking at 13.45%. The remaining ratio was divided on other activities, including other revenues, dealing and custody at 13.21%, 12.34% and 4.38% respectively.

As for the Corporate Governance, 51 general assemblies, attended by 10,176 shareholders, were held in Q4 of 2022, discussing 361 items of which only 4 items were rejected. The number of the non-executive board chairmen reached to 249, with their 214 non-executive vice chairmen and 28 executive vice chairmen, 1227 non-executive board members, and 152 executive board members.   

Concerning the Financial Technology (FinTech) Companies, the number of authorized FinTech in the Equity Crowd Funding platforms amounted to 5 companies in Q4 of 2022, and the aggregated funds through Equity Crowd Funding platforms reached to SAR 25.50 million. A number of 52 institutional clients, 2501 qualified clients, and about 68,000 individual clients benefited from the services of FinTech companies.

The report can be viewed via the following link:

​

The Capital Market Authority (“CMA") issued a detailed report on the fourth quarter (Q4) of 2022 on the Market Institutions under CMA supervision. The publication of the report aims at promoting confidence and raising the level of transparency and disclosure in the capital market, in addition to serving researchers and followers of the capital market by providing accessing detailed data on the sector, its activities and variables.

The report provides detailed data on the entities that are subject to CMA supervision, including workforce, capital adequacy in the practices of dealing, management and custody, value of brokers' trading in the Saudi capital market, value of assets under management of licensed capital market institutions, public and private funds, complaint data against the licensed capital market institutions and availability of brokerage service.

The data showed that the rate of Saudization in the capital market institutions settled around 77% in Q4 of 2022. Also, the rate of Saudization in the Credit Rating Agencies recorded a notable high reaching 44% in Q4 of 2022, compared to 26% in Q4 of 2021.

Further, the rate of Saudization in the market's key infrastructure institutions climbed to 91% in Q4 of 2022, compared to 90% in Q4 of 2021. The rate of Saudization in the Financial Technology (FinTech) companies reached 76% in Q4 of 2022, compared to 73% in Q4 of 2021.

The size of assets under management in the capital market institutions reached SAR 743.3 billion in Q4 of 2022, compared to SAR 758.6 billion in Q4 of 2021.

The number of public and private investment funds surged 25%, bringing the number of funds to 941 funds in Q4 of 2022, compared to 751 funds in Q4 of 2021. Also, the size of assets under the custody activity in the capital market institutions licensed to practice custody activity reached SAR 1.67 trillion in Q4 of 2022.

The capital market institutions' trading values in practicing dealing activity in the capacity of an agent amounted to SAR 619 billion in Q4 of 2022, the stake of the main market thereof reached SAR 614.3 billion and value of “Nomu" trading reached about SAR 4.7 billion.

 As for the financial technology (FinTech), 3 companies received the Financial Technology Experimental Permit (FinTech ExPermit) in Q4 of 2022. Also, FinTech ExPermit applications reached 10 applications in Q4 of 2022.

The report details can be viewed via the following link:

The Capital Market Authority (“CMA") launched today the Graduates Development Program (GDP) in its eleventh batch (2023-2024).

The CMA has launched the 11^th GDP Program to recognize the importance of the qualified human element in developing and enhancing the securities sector, as the CMA aims to raise the level of knowledge and skills of graduates in the technical and regulatory aspects of the securities field to a level that qualifies them to enhance their opportunities of obtaining jobs in the capital market sector.

The 12-month GDP Program aims to qualify the on-the-job training nominated trainees through the practical application of the CMA's legislative and regulatory role and its relationship relevant to other entities, which shall pose trainees with required knowledge and expertise on the laws, regulations, and procedures relevant to the capital market.

The Program grant the trainees an opportunity to attend the preparation programs for professional certificates and conduct related exams, in addition to gaining competencies in teamwork, relationships with others, analytical thinking, and time management.

Within this context, the CMA's Director of Human Resources, Fahad Abdulaziz Alromeih, stressed the importance of the Program and its role in building national efficiencies in the financial sector, which is considered a successful outcome in the capital market through investment in human capital and adopting the most up-to-date and developed methods.

The CMA seeks to attract outstanding graduates who show our society's values and ideals, including: Desire to develop, seeking excellence, communication and consultation, taking care of society and bearing responsibility, Alromeih added.

The Program comprises specialized qualifying majors, and the nominated trainees shall be enrolled in each depending on their academic qualifications. The said majors are: Finance, Accounting, Law and Management. Also, the nominated trainee gets various benefits, including: Monthly salary allowance, annual leave, medical insurance, and registration in General Organization of Social Insurance (GOSI), in addition to joining the in-house training courses. 

It is worth noting that, the GDP is one of the CMA's initiatives to qualify and train graduates, as the CMA has trained about 350 trainees up to 2022.

For more information and terms and conditions for joining, kindly visit the Program page:

CMA's Graduates Development Program (11^th Batch)

The Ministry of Commerce (“MC") and the Capital Market Authority (“CMA") clarified today, 11/06/1444H corresponding to 04/01/2023G H the mechanism of implementing the New Companies Law, which comes in continuation of the joint efforts between the MC and the CMA to achieve integration and harmony in implementing the Law to support in realizing its goals.   

The MC and CMA stated that pursuant to Item (Third) of Royal Decree No. (M/132), dated 1/12/1443 AH, issued approving the Law, which stipulates: “Existing companies when the law -referred to in Item (First) of this Decree- is effective must amend their positions in accordance with the provisions of the Law in a period not exceeding (two) years, starting from its effective date. By way of exception, the Ministry of Commerce and the Capital Market Authority -each in accordance with its competencies- shall determine the provisions to which those companies shall be subject during that period "; and since the Law was published in Umm Al-Qura Gazette on 23/12/1443H corresponding to 22/07/2022G and will be effective on 26/06/1444H corresponding to 19/01/2023G, the two-year grace period does not include new companies incorporated after the Law comes into effect as they will be subject to all provisions of the Law from its effective date. The grace period does not include the provisions that have continued from the Companies Law issued by Royal Decree No. (M/3), dated 28/01/1437 AH, nor does it include the provisions stipulated in the Law on crimes, offences and the penalties set by the Law upon committing the same, which shall be effective at the effective date of the Law. Additionally, provisions that introduced procedural requirements on the company or its administrative body shall apply at the Law's effective date.

Examples of the provisions for which  companies are granted a grace period include Articles (36), (52), (61), and (158) of the Law, noting that companies must comply with the provision of Paragraph (1) of Article (68) of the Law when the term of the current Board of Directors ends and a new Board is elected, and before the expiry of the two-year grace period after the Law's effective date, whichever comes first.

Provisions that companies must comply with from the effective date of the Law include the following:

Further, the MC and CMA clarified that existing companies, when the Law is effective, may not take any action or arrangement, or institute a new legal position that is in contravention with the Law after its effective date. And if the company, during the two-year grace period, amends its Articles of Incorporation or Bylaws then it must amend all aspects in said Articles of Incorporation or bylaws that require amendment in accordance with the Law, except in the cases determined by the MC in coordination with the CMA.

It is worth noting that the companies, partners and shareholders shall have the full capacity to exercise all rights stipulated in the Law as of its effective date, taking into account amending their Articles of Incorporation or Bylaws, if so required.

The MC and the CMA, by clarifying the mechanism of implementing the Law, look forward to contributing to realizing the Law's goals that include promoting the regulatory environment of companies, facilitating the legal procedures and requirements to promote the business environment and support investment, achieving balance among stakeholders, providing an efficient and fair framework for corporate governance, emphasizing institutional work, supporting sustainability of economic entities, contributing in attracting foreign and domestic investment, providing sustainable financing resources, and further, to fulfill the needs and requirements of the entrepreneurship sector and to promote the growth of small and medium enterprises (SMEs).

To view the press release in PDF (Click here)

The Capital Market Authority (“CMA") held, Tuesday, an evening hailing the launch of a new book titled “The Story of the Market" which documents key stages in the Saudi Capital Market's history that haven't' been tackled before.  

The evening comprised a dialogue session attended by the Chairman of the Board of the Capital Market Authority, HE Mohammed bin Abdullah Elkuwaiz, Governor of the Saudi Central Bank, HE Dr. Fahd bin Abdullah Al-Mubarak, and Managing Director and Chairman of the Board of Commissioners of the Kuwaiti Capital Markets Authority, Dr. Ahmed Al Melhem. 

The Book, issued in two “research and illustration" versions by the Saudi CMA, addresses the history of the Saudi Capital Market through three stages, starting with the inception of ​national joint stock companies and challenges faced in the early years of the last century, passing through assigning the supervision of the capital market to a ministerial committee, to the last stage which witnessed the issuance of the Capital Market Law and establishing its relevant system.

The CMA's Chairman expressed his happiness for launching the Book after going through a research journey extended over three years, during which the CMA held more than 80 interviews with economic figures participated and shared the capital market's journey, in addition to using various scientific references and hundreds of historic documents.

This Book is part of the initiative adopted by the CMA to document the history of the capital market since inception. The initiative aims to scientifically record the emergence and history of the capital market, gather scattered documents and information to place them as scientific references for the specialist academics and researchers related to the capital market and give lessons on the successive developments the CMA has witnessed, Elkuwaiz added.

The Saudi Central Bank's Governor also expressed his joy of the depth of issues the Book tackled. “The Book has discussed historic stages that haven't' been tackled before by any books that handled the topic of capital market. The Book also offered interesting historic information in a thrilling and agile style", Al-Mubarak added.

The Governor talked about the transition stage between the ministerial committee and the CMA, explaining some of the facts and stories included within the Book content in the said stage, how the Capital Market Law was issued, and the appointment of first board of members for Saudi Tadawul chaired by Al-Mubarak himself.   

Finally, Dr.  Al Melhem tackled the history of the Kuwaiti capital market, inception and events witnessed, referring to Souk Al-Manakh events and their reflections and repercussions on the Kuwaiti capital market and economy in general.  

​

The Capital Market Authority (“CMA") and the Saudi Bar Association (“SBA") have launched the Initiative of Accreditation Standards for Lawyers Specialized in Securities Cases (“Initiative") which aims to improve the level of professional specialization for lawyers in the securities and relevant activities, and raise the efficiency of pleading before Committees for the Resolution of Securities Disputes in a way best services the development of the Saudi capital market and its participants.

The initiative comes as part of the Memorandum of Understanding (MOU) entered by and between the CMA and SBA to support the participation of the directory for advocacy and legal advice in securities and relevant activities and raise the level of knowledge and professional competence of lawyers and legal advisors in securities.

The Initiative comprises a number of standards required to classify the lawyers specialized in securities cases filed before Committees for the Resolution of Securities Disputes and providing legal advices and services in the securities and relevant activities. Among those standards are having a valid license for practicing the bar, an experience of five years, at least, in practicing legal business, a SAB valid membership and a legal facility valid register (for legal facilities). Further, having the General Securities Qualification Examination (CME-1) or passing the specialized training program in (qualifying for legal practice in securities) to be launched by the SBA near soon.

It is worth noting that the names of lawyers, specialized in securities cases, and who meet the initiative's accreditation standards, have been enclosed and posted in the website of SBA's directory for advocacy and legal advice under category (securities specialized lawyers) (Here) to be continuously updated to enclose more names of candidate lawyers to provide a channel facilitating matters on seekers of securities legal services and introducing them to specialized lawyers in securities cases.

The Capital Market Authority and the Saudi Bar Association, with full gratitude, would invite candidate lawyers to register through the designated form via the SBA's website (Here). 

​

The “Capital Market Institutions Committee (“CMIC")" held, Tuesday, the “Capital Market Institutions Forum" to discuss the digital transformation in the Capital Market Institutions and the role played by such institutions in introducing the foreign investments to the capital markets.

The Forum's first dialogue session discussed the digital transformation of the local Capital Market Institutions compared to the global digital transformation, and the status of the digital transformation in said institutions, key obstacles faced in the process of digital transformation and the key sectors to put focus on in digital transformation process in the Capital Market Institutions. Risks of rapid digital transformation and how to protect information were discussed at the end of the session.  

The second dialogue session discussed how attractive are the investment instruments and products available in the Saudi capital market and the role of the foreign investment in supporting the capital market. Further, the session also discussed the role of the Capital Market Institutions' territorial and external branches in attracting the global investment and the experience of the global Capital Market Institutions in the Saudi market.  

During the Forum, many workshops were held on the challenges and opportunities in the real estate investment funds, capital market's investment products, and development of the human resources in the Capital Market Institutions. The fourth workshop revolved around the Financial Technology (FinTech).

The Chairman of the Board of the Capital Market Authority, HE Mohammed bin Abdullah Elkuwaiz stressed the important role played by the Capital Market Institutions in supporting the economy and boosting the capital market's capabilities on providing suitable investment alternatives for investors.

In his speech in the Forum, Elkuwaiz stressed that availing the entrance to the capital market for the foreign investors represents opening a channel that connects the Saudi market with the whole world. “The said channel has been efficient and the Initial public offering (IPOs) have been attractive to investors, thus, the liquidity shall benefit not only the capital market but also the economy in general", Elkuwaiz added.

From her side, the Chairman of Capital Market Institutions Committee, Muneera Aldossary stated that the Kingdom's economic capabilities placed it among the great powers, ranking the Kingdom as one of the top 20 largest economies in the world. This comes as a natural result to what the Kingdom witnessed of economic reforms during the last few years within the strategy of the Kingdom's Vision 2030. 

The progress achieved by the capital market and its institutions is largely attributed to the role played by the economic improvement achieved simultaneously on the Kingdom's level. The above had eminent impact on the orientation of a lot of foreign investors all over the world towards the Kingdom and its capital market, and the results of the same are obvious in the recorded numbers achieved in foreign investment volume which leapt in accelerated paces successively during few years, Aldossary added.   

Today, the Capital Market Authority issued the Quarterly Statistical Bulletin (QSB) for the third quarter (Q3) of 2022. Through this bulletin, the CMA aims to provide several statistical information and data about the Saudi Capital Market that is important for investors, market analysts, and academic and student researchers. Also, the CMA aims to raise the level of transparency and disclosure and stimulates and develop investment in the capital market.

The bulletin provides a variety of data on the Saudi Capital Market including Initial Public Offerings (IPOs), equity, debt instruments, investment funds in addition to data regarding Capital Market Institutions, listed companies and authorized Financial Technology (FinTech) Companies, and further, a full chapter about corporate governance.

The quarterly bulletin data showed that the number of portfolios under management increased at a record rate of about 680% to reach 20.625 portfolios in Q3 of the current year, compared to 2644 portfolios by the same period of 2021, and an increase of 459% compared to 3689 portfolios by the end of Q2 of 2022. The said increase is due to the high raise of the private portfolios number of one of the capital market institutions which launched its businesses recently during Q3 of 2022.

The asset value of portfolios under management raised at about 10% reaching to SAR 235.72 billion in Q3 of 2022 compared to SAR 213.91 billion in the same period of 2021. The local equity represented about 53% of the total assets of the portfolios under management reaching to SAR 125.4 billion in Q3 of 2022, as the local equity in the portfolios raised at about 10% compared to SAR 114.31 billion in the same period of 2021. The investment funds stake represented 23% of the total assets of the portfolios under management with an increase of 18% reaching to SAR 53.7 billion compared to SAR 45.4 billion in Q3 of 2021.

The listed companies on the main market (TASI) reached to 217 companies, with an increase of 6% compared to 205 companies in Q3 of 2021. While the listed companies on the parallel market “Nomu" reached to 38 companies, with an increase of 217%, compared to 12 companies in the same period of 2021 or a surge of 7 companies at a rate of 23% of the market listed-companies in Q2 of 2022, as the companies' number was then 31 only.

The CMA approved the offering of about three companies in the main market and five companies in “Nomu" during Q3 of the current year. Nine offers and listing requests in the main market, in addition to other 61 in “Nomu", are still under study during the same period.

As for the value of ownership in the main market, the value of the qualified foreign investors' (QFIs) ownership surged to 19% at SAR 280 billion in Q3 of 2022 compared to SAR 235.7 billion in the same period of 2021.

As for the investor's classification, according to the investment behavior; the value of the institutional investors' ownership amounted to 96.27% in Q3 of 2022, compared to 95.89% by the same period of 2021.

The number of investment funds increased to 890 funds, the highest in history, after an increase of 22% when compared with the same period of 2021, including 253 public funds and 637 private funds compared to 254 and 473 funds respectively in Q3 of 2021.

The number of the public and private investment funds subscribers amounted to 50% to reach 677,447 in Q3 of 2022, compared to 453,141 by the same period of 2021.

The biggest number of public and private investment funds subscribers were in the operating funds in the real estate sector, as the subscribers of the real estate investment traded funds represented 45% of the total subscribers in public investment funds while the subscribers of the real estate funds represented 61% of the total subscribers in private investment funds.

As for the Corporate Governance; 53 general assemblies, attended by 11,655 shareholders, were held in Q3 of 2022, discussing 301 items of which only five items were rejected. The number of the non-executive board chairmen reached to 232, with their 197 non-executive vice chairmen and 28 executive vice chairmen, 1183 non-executive board members, and 141 executive board members.     

Concerning the Financial Technology (FinTech) Companies; the number of authorized FinTech in the Equity Crowd Funding platforms amounted to 9 companies in Q3 of 2022, and the combined funds of crowdfunding companies reached to SAR 20 million. A number of 25 institutional clients, 1188 qualified clients, and about 38,000 retail clients benefited from the services of FinTech companies.

Statistical Bulletin can be viewed via the following link:

Statistical_Bulletin Q3 2022

The Ministry of Commerce (“MC") and the Capital Market Authority (“CMA") announced publishing the Draft Implementing Regulations of the New Companies Law for public consultation for a period of fifteen (15) calendar days. The Draft comes pursuant to the issuance of the New Companies Law and based on the authority the Law grants to the CMA and MC to regulate some matters and subjects stipulated in the Law.

The Draft aims to facilitate the legal procedures and requirements to promote the business environment and support investment, to provide an efficient and fair framework for corporate governance, to contribute to attracting foreign and domestic investment and to provide sustainable financing resources.

The key elements included in the Draft are: Clarifying the mechanism of filing companies' financial statements, the Board's report, and the external auditor's repor;, stipulating the detailed provisions for Board Members' duty of care and duty of loyalty; determining the method of voting in the election of Board Members; stipulating the requirements related to a shareholder reserving a seat on the Board pursuant to the company's bylaws; and clarifying the procedures to be applied in the removal of a Board Member by the ordinary general assembly. The Draft also included updating the name of (the Regulatory Rules and Procedures issued pursuant to the Companies Law relating to Listed Joint Stock Companies) to become (the Implementing Regulation of the Companies Law for Listed Joint Stock Companies).

The Draft also included regulating the period in which Board Members shall continue in their capacity after the end of the Board tenure or the resignation of its members and until the election of a new Board, regulating the distribution of dividends to partners and shareholders and what constitutes distributable profits, and stipulating the prohibition of using the share premium in distributing cash dividends to shareholders. Also, the Draft included setting out the controls on the general assembly's delegation to the Board to authorize a Board Member's participation in any businesses that may compete with the company or any of its activities, and setting out the maximum period for the external auditor's tenure.

Further, the Draft included clarifying the provisions governing a company's demerger, and determining the provisions of Chapter (10) of the Law that do not apply in case of a merger of a wholly-owned subsidiary in its parent company, given the nature of this type of merger, setting out the provisions governing the issuance of a company's shares and its conversion and controls of its issuance and buy-back, including the specific provisions in relation to issuing redeemable shares and the terms and conditions for redemption, and regulating the forward split or reverse split of shares, as well as the maximum period between the issuance of the accredited valuers report for the fair value of in-kind stakes and the issuance of shares for such stakes.

The Draft also included regulating the Squeeze-out and Sell-out provisions stipulated in Article (230) of the Law, including the relevant disclosure requirements and the conditions for the offer price.

When developing the Draft, the CMA also took into consideration aligning the scope of the definition of the term “Related Parties" used for the purposes of the Corporate Governance Regulations with the scope of the definition of the term “Related Parties" used for the purposes of the Rules on the Offer of Securities and Continuing Obligations, and the scope of relatives for related parties for both definitions.

It is worth mentioning that the Draft is divided into the Implementing Regulations issued by the MC comprising the regulation of companies' forms, except joint stock companies listed on the Exchange, and the Implementing Regulations issued by the CMA comprising the regulation of listed joint stock companies. The CMA, in preparating of the Draft, took into consideration including the necessary amendments on its issued Regulations to align with the Law.

The MC and CMA, with full gratitude, would receive the opinions and comments of relevant and interested persons, through the Unified Electronic Platform for Consulting the Public and Government Entities (Public Consultation Platform), affiliated with the National Competitiveness Center, through the following link: istitlaa.ncc.gov.sa.

The Draft can be reviewed via the following link:

Draft Implementing Regulations of the Companies Law for Listed Joint Stock Companies

All opinions and comments will be taken into full consideration and study for the purpose of approving and finalizing the Draft.

The Capital Market Authority (“CMA") announced its approval on the Regulations of Market Making and Market Making Procedures proposed by the Saudi Exchange. The CMA's approval aims to regulate the activities of listed securities market making, and impacts resulted from approving the market making registration application, and description of mechanism of practicing market making activities on securities. 

The Regulations include the Market Maker's activities through providing continuous listed securities buy/sell orders during the market open session to provide liquidity to the relevant listed securities. Also, among the conditions of the Market Maker, it shall have a membership of the market or derivatives market and shall have the written policies and procedures to separate between the market making activities and any other activities practiced by the Maker. The Market Maker shall also have the security and technical requirements necessary for practicing the activity, or any other condition proposed by the market and approved by the CMA.

The Regulations set out the Market Maker's liabilities; among them: to assign an account at the Securities Depository Center (Edaa) (where applicable) and Securities Clearing Center Company (Muqassa) that are limited to practicing activities of market making only on specific security (securities) in accordance with the Market Making Agreement. Also, all activities of market making practiced by the Market Maker shall be in compliance with the Capital Market Law, its Implementing Regulations and the Market Rules, and any other relevant laws.

The CMA's approval on the Market Making Regulations and Procedures comes as part of the CMA's continuous efforts to create potentials facilitating trading process, including increasing efficiency and volume of liquidity in the capital market through providing continuous listed securities buy/sell orders.

The Regulation of Market Making can be viewed on “Saudi Exchange” website via the following link (Here​)

The Capital Market Authority signed, Wednesday, November 30, 2022, a “Memorandum of Understanding" (“MOU") with the Saudi Organization for Chartered and Professional Accountants (“SOCPA") with the aim of laying down a mechanism of cooperation, between the two bodies, in relation to regulating the field quality control of the professional performance and execution of auditors of the entities, subject to the Authority's supervisions.

The MOU aims to set out and approve a coordination framework, between the two bodies, identifying and adopting the means of tasks' coordination, and how to execute said tasks, in addition to boosting the supervision and control on the auditors of the entities, subject to the Authority's supervisions each according to its legal specialties, and assigning the tasks of the two bodies, in addition to clarifying any mutual roles or arrangements, which shall lead to protecting the investors' best interests.

On this occasion, the CMA's Financial Statements and Auditors General Director, Sami Mohammad Alshorafa, stressed the importance of the MOU and its role in deepening the quality of control on the audit firms registered at the CMA, in a way that preserve the investors' rights and support their investment decisions through obtaining the financial statements with highest degree of disclosure and transparency.

From his side, the SOCPA's Quality of Professional Performance Executive Director, Mohammed bin Sulaiman Al-Ghaib, reported that the MOU shall support SOCPA in developing the accounting and auditing profession by elevating the profession level through reviewing, developing and approving accounting and auditing standards and helping in practicing the profession duties on field control.

It is worth to mention that the said MOU is concluded in execution for Article (6) of the Council of Ministers' Resolution No. (416), dated 25/07/1442 AH, which states that “the Saudi Organization for Chartered and Professional Accountants and the Capital Market Authority should establish a mechanism of cooperation, between the two bodies, in relation to regulating the field quality control of the professional performance and execution rendered by auditors of entities, subject to the Authority's supervisions".​

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The Capital Market Authority ("CMA") approved, from January, 2018 to the end of the first half (H1) of 2022, about 116 requests to increase listed companies' capital. The size of the capital increase surged by more than SAR 100 billion. This highlights the role that the CMA plays in the funding of listed companies and the economy at large.

In this regard, Abdullah Bin Ghannam, Capital Market Authority (CMA) Deputy for Listed Companies & Investment Products, stated that the capital increase requests approved by the CMA varied between the increase through a capitalisation issue, offering of rights issue, and debt conversion. The capital increase through capitalisation topped the requests with a ratio of 60.3%, followed by the offering of rights issue requests at 37.1%, and debt conversion requests reached 2.6% of total approvals.

Ghannam confirmed that the procedures for approving the requests to increase capital are passing through critical phases to study the requests since their announcement to completion. Such data shall be consistent with the targets of the Capital Market Authority Strategic Plan (2021-2023), which is considered part of the Financial Sector Development Program and, in turn, one of the initiatives of the Kingdom's Vision 2030 that aims to establish an advanced capital market that is open to the world and capable of attracting local and international capital and that plays an efficient and pivotal role in meeting the economy's funding requirements. Ghannam also added that the CMA recognizes the importance of the capital market as a channel for capital building and formation in order to support companies' growth and sustainability.

Within this context, it is essential to foster the market's role as a funding channel to establish and sustain the economy's building blocks, such as institutions, private companies, and development projects. As part of its strategic plan, the CMA will facilitate funding in the capital market by deepening the market and fostering its role in capital formation, developing sukuk and debt instruments market, and promoting the role of funds in order to contribute to the establishment of economic entities that support the growth of GDP and the national economy.

The CMA will work-based on its mandate and in coordination with the Saudi Stock Exchange (Tadawul) and other related parties-on the development of suitable procedures and initiatives to enable different types of companies, including government-owned companies and other types of government-owned assets (which can be transformed into companies) to offer and list their shares in the capital market, reflecting the true contribution of these companies to the national economy, without jeopardizing investor protection. The CMA hopes that this will lead to the establishment of economic entities capable of supporting the national economy and creating more investment opportunities for all investors.

​​Through its Batch III of 2022 Research Agenda, the Capital Market Authority (CMA) aims to build bridges of communications with the researchers in academic institutions and research centers to conduct sound applied researches serving different aspects of capital markets and CMA's primary functions.

The study forms in the current year include measuring the impact of CMA’s regulation and instructions on the capital market, assessing listed companies’ board members’ roles and regulatory obligations, and the companies’ performance since listing, in addition to assessing the investment funds’ performance.    

Based on believing in the importance of scientific research, the CMA periodically opens the door for submission to the Research Agenda project for all researchers in academic institutions and research centers by publishing the research areas on its website and the time frame for submission, screening and selection.

Ahmad Alenizi, assistant deputy of the Capital Market Authority for Strategic and International Affairs, said that the CMA is keen on supporting the researchers, sponsoring research projects, and holding the workshops for discussing results and recommendations of studies and researches with concerned parties inside and outside CMA, in addition to connecting the academics with capital market issues and raising financial culture level among the public. 

The CMA seeks, through its research agenda, to improve the quality of research outputs related to the Saudi capital market in universities, research and academic centers, and aims to benefit from the results and recommendations of those research in supporting the development of the Saudi capital market and strengthening the supervisory role of the CMA". Alenizi added.

The Assistant Deputy indicated that the CMA, since the beginning of the research agenda in 2017, has supported 36 researchers representing 13 academic and research bodies. After the adoption of the new mechanism for the research agenda (publishing research agenda batches in the CMA website) in 2021, the CMA received approximately 66 research proposals, and the CMA worked to support a number of them according to the approved evaluation and selection methodology.

The CMA is inviting all researchers, in academic institutions and research centers, to submit research proposals, in the specific research areas, via visiting CMA official website and accessing the designated E-form.

To submit research proposals, download the Proposal Submission Form, fill it out, and share it with us on the following e-mail: Research.agenda@cma.org.sa

For more information, visit the following link:

For the Research Agenda Guideline, visit the following link:

Research Agenda Guideline

Today, the Capital Market Authority (CMA) issued the Quarterly Statistical Bulletin (QSB) for the second quarter of 2022. Through this bulletin, the CMA aims to provide several statistical information and data about the Saudi Capital Market that is important for investors, market analysts, and academic and student researchers. Also, the CMA aims to raise the level of transparency and disclosure and stimulates and develop investment in the capital market.

The quarterly bulletin data showed that the Key Market Indicators recorded a 5% increase at 11,523.25 points compared to 10,984.15 points in the same period of 2021.

The number of portfolios under management increased at a rate of about 56% to reach 3689 portfolios by the end of Q2 of the current year, compared to 2360 portfolios by the same period of 2021. The local equity represented about 56% of the total assets of the portfolios under management in Q2 of 2022, as the local equity in the portfolios raised at about 36% reaching to SAR 128.36 billion compared to the same period of 2021.

The listed companies on the main market (TASI) reached to 215 companies, with an increase of 6% compared to the same period of 2021. While the listed companies on the parallel market “Nomu" reached to 31 companies, inched higher slightly by 6 companies on a quarterly basis or a surge of 24 companies at a rate of 24% compared to the same period of 2021, representing a 343% increase, as the companies number was then 7 only.

The CMA approved the offering of about three companies in the main market and ten companies in “Nomu" during Q2 of the current year. Six offers and listing requests in the main market, in addition to other 70 in “Nomu", are still under study during the same period.

As for the value of ownership in the main market, the value of the qualified foreign investors' (QFIs) ownership surged to 31% compared to the same period of 2021.

As for the investor's classification, according to the investment behavior; the value of the funding investors' ownership amounted to about 97% in Q2 of 2022, compared to about 96% by the same period of 2021.

The number of investment funds increased to 839 funds, the highest in history, after an increase of 19% compared to Q2 of 2021 of 705 funds, and an increase of 6% compared to Q1 of 2022, including 254 public funds and 585 private funds at the end of Q2 of 2022.

The number of the public investment funds subscribers amounted to 66% to reach 666,000  by the end of Q2 of 2022, compared to 402,000 by the same period of 2021. The subscribers of the real estate investment traded funds represented 45% of the total subscribers in Q2 of 2022 at a number of 297,000 subscribers .

The asset values of private investment funds increased by 22% by the end of Q2 of 2022 to reach SAR 334 billion , compared to SAR 274 billion by the the same period of 2021. The shares represented about 51% of the public investment funds in Q2 of 2022, and the shares, as one of the private investment funds assets, climbed about 12% to reach SAR 170 billion compared to the same period of 2021.

As for the Corporate Governance; 86 general assemblies, attended by 18,382 shareholders, were held in Q2 of 2022. The number of the non-executive board chairmen reached to 222, 188 non-executive vice chairmen, 1,162 non-executive board members, and 132 executive board members.     

Concerning the financial technology; the number of Equity Crowd Funding companies platforms amounted to 9, and the funds of crowdfunding platforms reached to SAR 28.6 million. A number of 849 institutional client, 319 qualified client, and 16,965 retail client benefited from the services of the financial technology companies.

The rate of Saudization of the workforce of financial technology companies has increased from 74% in Q1 to 80% in Q2 of 2022.

Statistical_Bulletin q2 2022

The Capital Market Authority (CMA) issued a detailed report on the second quarter of 2022 on the Market Institutions under CMA supervision.

The report aims at promoting confidence and raising the level of transparency and disclosure in the capital market, in addition to helping researchers and followers of the capital market by providing services of accessing detailed data on the sector, its activities and variables.

The report provides detailed data on the entities that are subject to CMA supervision, including workforce, Financial adequacy in the practices of operations, management and custody, value of brokers' trading in the Saudi capital market, value of assets under management of licensed financial market institutions, public and private funds, complaint data against the Licensed Financial Market Institutions and availability of brokerage service.

The report revealed the Capital Market Institutions' assets under management increased by 8% to reach SAR 757 billion by the end of Q2 of the current year, compared to SAR 703 billion by by the same period of 2021.

Furthermore, the data showed rate of Saudization reported in Q2 of 2022 in the Capital Market Infrastructure Institutions and Financial Technology Companies reached 89% and 80% respectively.

As for the FinTech, 11 companies received the Financial Technology Experimental Permit (FinTech ExPermit), while the applications for FinTech ExPermit climbed to 20 applications in Q2 of the current year, compared to only 4 applications by the same period of 2021.

The report can be viewed via the following link:

Institutions Under Supervision of CMA Report Q2 2022

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Last Monday, the Capital Market Authority (CMA) held a workshop to introduce the “Rules for Collecting Zakat from Investments in Investment Funds”, attended by 203 concerned parties and 74 participating market institutions, in addition to CMA’s representatives.

The CMA aims from holding this workshop to raise the awareness of the investment funds managers concerning collecting Zakat from investments in investment funds and being familiar with their responsibilities and obligations stipulated in the CMA-approved draft of the Rules for Collecting Zakat from Investments in Investment Funds.

The workshop discussed the funds managers’ obligations, in light of the Rules for Collecting Zakat, including the registration of all investment funds with the Zakat, Tax and Customs Authority (ZATCA) before the end of the first fiscal year from the approval of their establishment, submission of the fund’s information declarations within sixty (60) days ahead the end of the fiscal year, the commitment of the taxpayer or the owner of the investment unit to provide the required information for Zakat base, and finally to inform the CMA upon the Fund termination or liquidation sixty (60) days before the process date.  

The workshop also introduced the Rules for Collecting Zakat from Investment Funds, determining non-trading securities percentage of listed equity funds, in addition to referring to applying the Rules for Calculation of Zakat for Financing Activities on direct and indirect finance funds, provided that Zakat is due on said funds.

It is worthy to mention that ZATCA has launched the “Rules for Collecting Zakat from Investments in Investment Funds” to survey the public’s views at the beginning of the current month until August 31, 2022.  ​

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The Capital Market Authority (CMA) announced the start of receiving applications for applicants to obtain FinTech ExPermit for the fifth batch. This comes as a continuation of the series of FinTech Lab successes in its previous four batches and in continuation of the CMA's keenness to regulate and develop the Saudi financial market and make it an attractive environment for local and regional investors by supporting the financial technology industry and developing innovative products in the capital market.

The CMA is looking forward to receive applications for obtaining a FinTech ExPermit for the fifth batch from all those interested in financial technology and entrepreneurs until the date of December 15, 2021, provided that their products meet the requirements, most notably must involve a securities activity, i.e. within the scope of the activities that the CMA regulates and must be at a sufficiently advanced stage of development to mount a live test, in addition to that, promotes significant growth, efficiency at the Kingdom capital. The CMA also clarifies that it receives applications from applicants during the year, and those applications received are evaluated and studied in batches.

The FinTech Lab is a legislative experimental environment that allows providers of financial technology products and services to test their innovative business models within specific criteria, time and regulatory requirements under the supervision of CMA. The lab receives applicants from inside and outside the Kingdom to experiment with financial products and services related to securities activity with innovative business models that are ready for testing in an experimental environment.

In this regard, the CMA has supported the creation of a legislative and regulatory environment for financial technology products in the financial market, and worked on continuous development to attract innovative business models and emerging technologies that open new horizons to facilitate financing and stimulate investment to build economic entities that enhance the depth and diversity of the financial sector and are in line with the objectives of the Financial Sector Development Program, one of the main programs of the Kingdom's Vision 2030.

It is worth noting that the CMA launched the Fintech Lab in December 2018, which is one of the significant steps that aims to support and develop innovation in the Fintech field in the Saudi financial market. In addition, the Fintech Lab enables the Fintech developers to experiment their innovative capital market products and services, within specific controls, parameters and timeframes under the CMA's supervision. Subsequently, CMA opened the first batch of applications for the FinTech ExPermit in February 2018. Since then, the CMA continued its efforts to receive applications in various batches. As a result, CMA Board of Commissioners granted 17 FinTech ExPermits in different business models including Equity Crowdfunding, Robo-advisory, Offering and Investment in Debt Instruments, platform that uses Distributed Ledger Technology (DLT) to arrange and offer of securities and custody services, and Social Trading Platform. During the second half of 2021, the CMA has adopted amendments to the instructions for the financial technology experiment permit. The most prominent of these amendments included the addition of definitions to clarify the nature of the FinTech Lab, as well as the addition of instructions for pursuit business in FinTech Lab.

The instructions can be viewed on the CMA's website via the following link:

Financial Technology Experimental Permit Instructions

For more details on the FinTech ExPermit application, please visit the following link:

FinTech Lab

​The Capital Market Authority has issued the Quarterly Statistical Bulletin for the second quarter of 2021. Through this bulletin, the Authority aims to provide several statistical information about the Saudi Capital Market that is important for investors, market analysts, and researchers. Also, it aims to share data that raises the level of transparency and disclosure and stimulates investment in the Capital Market.

The quarterly bulletin contains extensive data on the Capital Market, including offerings of securities, shares, Sukuk and bonds, investment funds, and Capital Market Institutions.

 The bulletin can be viewed through the following link:

Quarterly Statistical Bulletin - Second Quarter 2021

In reference to the Royal Decree No. (15016) dated 16/03/1442 AH regarding the suspension of some provisions of the Companies Law issued by Royal Decree No. (M / 3) dated 28/01/1437 AH, and in reference to the joint coordination between the Capital Market Authority and the Ministry of Commerce, the Capital Market Authority would like to clarify the content of Royal Decree regarding listed joint stock companies, as it includes the following:

1.  Exemption to the provision of Article (150) of the Companies Law:

(A) Extension of the period for which the board of directors must invite the extraordinary general assembly once the board of directors became aware of the losses of the joint-stock company reaching half of its paid-up capital, to (sixty) days, from the date the board of directors become aware of the losses, for a period of (two years) from the date of 01/08/ 1441 AH.

(B) Extension of the period during which the extraordinary general assembly meeting must be held to become (one hundred and eighty) days from the date the board of directors become aware of the losses for a period of (two years) from the date of 01/08/1441 AH.

2. Paragraph (2) of Article (the one hundred and fifty) of the Companies Law shall be suspended for a period of (two years) from the date of 1/8/1441 AH, and the joint-stock companies shall upon reaching the amount specified in Paragraph (1) of Article (the one hundred and fifty) of the Companies Law to continuously disclose the developments of the losses in accordance with the regulatory rules set by the Ministry of Commerce and the Capital Market Authority - each within its mandates , during the period of suspension of the work of Paragraph (2) of the aforementioned Article.

3. Exemption to the provision of paragraph (1) of Article (one hundred thirty-three), joint-stock companies are permitted to re-appoint an auditor whose term of appointment has reached (five) continuous years, for a period not exceeding (two) additional years, as long as the total period of his appointment does not exceed (Seven) continuous years for the audit office, and (five) continuous years for the partner who supervises the audit process, provided that this exception ends after the lapse of (two years) from the date of 01/08/1441 AH.

It should also be noted that the Authority has set regulatory rules that require listed joint stock companies that its accumulated losses amounted to 50% or more of the capital, to disclose the latest developments of accumulated losses in implementation of the royal decree.

The Capital Market Authority (CMA) Board approved the “Instructions on Issuing Depositary Receipts Out of the Kingdom” which aim to set out the regulatory framework for the issuance of depository receipts out of the Kingdom of Saudi Arabia for shares issued in the Kingdom and listed in the Saudi Stock Exchange; or shares issued in the Kingdom and its issuer has made the necessary arrangements for listing them in the Exchange. These instructions come for the purpose of opening the Saudi financial market to foreign markets and contributing to build an advanced global financial market, in addition to providing additional financing methods for Saudi issuers whose shares are listed in the Exchange, or who have made the necessary arrangements for listing their shares in the Exchange.
These instructions enable the company (the issuer) to allocate a percentage of the company's shares for which depository receipts are issued, where such depository receipts will be offered and listed in a foreign financial market. Listed or non-listed Companies on emerging markets typically use depository receipts for the purpose of offering and listing in advanced foreign markets, as depository receipts contribute to increasing the efficiency of pricing the issuer's securities between the local and foreign markets. It is also one of the flexible methods for the issuer to offer securities in the currency of the foreign market.

In this regard, Mr. Bader Balghonaim, the CMA Deputy for Legal Affairs and Enforcement clarified that one of the key objectives of these instructions is to set out the regulatory framework for the issuance of depository receipts out the kingdom for shares of companies listed on the Saudi Stock Exchange, or shares for which necessary arrangements for listing in the Exchange have been made, which enables diversifying the investors base in the Saudi Stock Exchange to include foreign investors in those depository receipts out the kingdom, taking into consideration  international best practices and standards.

The CMA studied all views and comments received during the public consultation, and among the views that were taken into consideration is clarifying the conditions to be met in order to enable the holder of depositary receipts, if such holder is among the categories of investors allowed to invest in the listed shares in the Kingdom, to cancel such receipts and become the holder of the corresponding shares. 

Moreover, the CMA has prepared the instruction in line with the its strategic objectives and responsibilities in further developing the financial market; it also comes in line with the CMA’s strategic initiative “Financial Leadership Program” to contribute in achieving the Saudi Vision 2030.

The Instructions can be viewed via the following links :

Instructions on Issuing Depositary Receipts Out of the Kingdom

Glossary Of Defined Terms Used In The Regulations And Rules Of The Capital Market Authority

​In line with the precautionary measures adopted by the Kingdom of Saudi Arabia to curb the spread of COVID-19; and in reference to the Saudi Stock Exchange’s (Tadawul) announcement on the temporary reduction of trading hours; the Capital Market Authority (CMA) confirms its continuous support of the health of the investment society and all its participant.

Nevertheless, The CMA has taken several precautionary measures to further assist market participants in these exceptional circumstances. Such measures include suspension of General Assemblies for listed companies until further notice and hold them via modern technology means, availability of e-voting for shareholders through “Tadawulaty” system provided by the Securities Depository Center Company “Edaa” and suspension of investment accounts freezing as per Investment Account Instructions. Moreover, the CMA stressed earlier on the financial institutions under its supervision to commence initiating business continuity plans and utilize modern technologies to ensure the continued pace of business without the need to visit trading rooms. The CMA monitors the market on an ongoing basis to take any additional measures that may be required in time to maintain the safety of the market and all its participants.

The CMA indicated that, in light of these exceptional circumstances, the importance of the continuity of the capital market and its transactions is highlighted. This step is taken to measure and analyze the economic status quo and its participants, and to promptly debottleneck any issues that traders may encounter . This translates the CMA role in promoting investment in the capital market. Technology has become significantly supportive of investors trading in the Saudi market, electronic trading accounts for approximately 90% of the total trading even before the recent events.

​The Capital Market Authority Board issued today its decision to suspend holding assemblies for companies listed in the capital market until further notice, and to hold such assemblies remotely via modern technology means that would enable shareholders to participate in their deliberations and vote on their decisions through “Tadawulaty” system provided by the Securities Depository Center Company “Edaa”.

This decision comes for the safety of the participant in the capital market and in support of the preventive efforts exerted by the relevant health authorities to address the novel Coronavirus (COVID-19), and as an extension of the continuous efforts made by all government agencies in the Kingdom of Saudi Arabia in taking the necessary preventive measures to curb its spread.

In that regard, the Securities Depository Center Company “Edaa” announced that the assembly registration would be available for shareholders through Tadawulaty system starting from Thursday 02/08/1441H corresponding to 26/03/2020G. In addition, the e-voting will be available for shareholders until the end of the assembly meeting.

It is worthwhile to mention that the e-voting service for companies listed in the Saudi capital market has been available to all shareholders since April 2017, through the  “Tadawulaty” system. The service enables the shareholders to participate in the decisions of the assemblies of the listed companies. It provides them with an opportunity to exercise their rights easily, and save the time and effort for the shareholders in cities and geographical regions which are far away from the assembly locations. The e-voting provides the shareholders with a sufficient period to review the agenda items in full details before the assembly convention, which helps them to make their own decisions and analyze them effectively.

​The Board of the Capital Market Authority (CMA) issued today its decision to approve the Securities Central Counterparties Regulations. The approved regulations aim at regulating the securities clearing activities in the Kingdom, and specifying the procedures and conditions for obtaining an authorisation to carry out such activities; which will contribute to introducing new securities classes such as derivatives, in addition to guaranteeing the settlement and fulfillment of obligations of transactions party, which will in turn strengthen the capital market current infrastructure and enhance its efficiency.

Furthermore, the approval of the Securities Central Counterparties Regulations was based on the amendments adopted lately to the Capital Market Law. The amendments granted the CMA the power to license the capital market infrastructure institutions that include the exchanges, depository centers, clearing centers, and activate its role to perform its duties and obligations within the capital market infrastructure institutions.

In preparation of the Securities Central Counterparties Regulations, the CMA took into account the best international practices in the international financial markets, the Principles for Financial Market Infrastructures (PFMI) issued by the Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO), and the comments it received after it had published the draft Regulations on its website for public consultation for a period of (14) calendar days.

This comes in continuance to the efforts of the CMA to develop and regulate the Capital market in the Kingdom, and in its aims to raise the attractiveness of the Capital market to all categories of investors, which will enhance its regional and international competitiveness, by raising the consistency between its regulatory requirements and the international best practices and standards, and in line with the objectives of the Financial Sector Development Program, one of the main programs of the Saudi Vision 2030, and in accordance with the CMA's Strategic Plan (Financial Leadership Program).

The Regulations can be viewed  via the following link:

Securities Central Counterparties Regulations​​

In continuance to the Capital Market Authority's (CMA) effort to regulate and develop the capital market, in addition to deepening it and promoting its role in raising capital, which were included in the CMA's strategic objectives to enhance the attractiveness of the market for investors of all classes under the pillar of facilitating funding, one of the pillars of the CMA's strategic plan (Financial Leadership Program 2019-2021), and in line with (the Financial Sector Development Program) one of the main programs to achieve the objectives of Saudi Vision 2030.

The CMA Board has adopted the amended Rules on the Offer of Securities and Continuing Obligations (the Rules). The Rules shall be effective upon its publication date, except for paragraphs (1) and (3) of Article 90 of the Rules, which will enter into force starting from 01/01/2020G.

The most prominent amendments that aim at developing the Parallel Market (Nomu) and promoting the trading and listing in it are allowing the direct listing in the Parallel Market, and regulating the provisions related to it in the Rules and the Listing Rules. In addition to changing the disclosure requirement of the interim financial statements from quarterly basis to semi-annual basis for companies listed on the Parallel Market, provided that the referenced amendment to the disclosure requirement of the interim financial statements shall enter into force starting from 01/01/2020G.

In addition, a number of amendments have been adopted to the Rules that will allow foreign issuers to list their shares on the main market, by stating the provisions with which the foreign issuer who submits an application for listing in the Main Market in accordance with the listing rules shall comply. It is also worth mentioning that the CMA Board's resolution to adopt the Rules included that the investments limits imposed by the Capital Market Law and its implementing regulations on the investments of foreign investors shall not apply to the investments of foreign investors (of all categories, whether resident or non-resident) in the shares of the foreign issuer that are listed on the Main Market in accordance with the Listing Rules. In addition, the aforementioned resolution also provides that all categories of foreign investors are allowed to invest directly in the shares of the foreign issuer whose shares are listed on the Main Market in accordance with the Listing Rules.

Other amendments to the Rules included the amendment of paragraph (c) of Article (69) of the Rules to include termination of a director's membership in the board of directors or director's dismissal from the board of directors, and termination of any of the audit committee's membership. The amendments on the Rule also included adding a requirement obliging the issuer seeking registration and offering or registration of its shares in the Parallel Market to submit along with its application to the CMA electronic copies of the acknowledgement and an undertaking signed by the board of directors of the issuer and by each proposed director of the issuer in the form set forth in Annex 8 of the Rules. Further amendments on the Rules included amending Articles 24 and 75 of the Rules for the financial statements required to be submitted in the case if  the period covered by the most audited financial statements has ended more than six months prior to the expected date of approval of the application for registration and offer or the application for registration to become reviewed financial statements instead of audited financial statements. The amendments also included amending subparagraph (2) of paragraph (a) of Article (69) of the Rule in relation to the periods during which directors, senior executives or audit committee members of the issuer or any of their associates my not deal in any securities of the issuer. The amendment of the aforementioned subparagraph included that the period of the prohibition of dealing will be during the 30 calendar days preceding the end of the financial year and until the date of disclosing the issuer's audited annual financial statements, or the interim financial statements for the fourth quarter if the issuer has disclosed them after reviewing them and fulfilling the requirements of Article (64) of the Rules. Further, the amendments also included extending the scope of exempt offer pursuant to subparagraph (8) of paragraph (a) of Article (6) of the Rules to not limiting it to sophisticated investors by regulating and stating the requirements for individual investors' participation in the subscription of the offered securities. In addition, the amendments included stating the cases that the issuer is obliged to disclose that are related to bankruptcy procedures under the Bankruptcy Law.

HE Mr. Mohammed El-Kuwaiz, Chairman of the Capital Market Authority, said: "The CMA has adopted the amendment of the Rules on the Offer of Securities and Continuing Obligations in order to regulate and develop the Capital Market, in addition to enhancing its stability and supporting the national economy. He added: “The most prominent amendments were focused on encouraging the entry of the foreign issuer into the Main Market, to create greater opportunities for diversification of investment for investors. In addition, developing the Parallel Market to become more attractive and to facilitate ways to invest in it. The amendments also included stating the cases on which the issuer in the Capital Market must disclose, which are related to bankruptcy procedures under the Bankruptcy Law, in order to raise the level of governance and transparency in the Capital Market. Besides extending the scope of exempt offer to include individual investors, to support entrepreneurs and small enterprises.

It is worth mentioning that the CMA has also adopted the amended Instructions for Companies' Announcements and the amended Glossary of Defined Terms Used in the Regulations and Rules of the Capital Market Authority to be consistent with the amendments to the Rules. At the same time, the CMA approved the amended Listing Rules and the amended Glossary of Defined Terms used in the Exchange Rules at Tadawul. The CMA has taken into consideration, when amending the Rules, carrying out the public consultation from specialists and interested parties. Moreover, The CMA Board has also issued its resolution to adopt and publish the amended Instructions for Book Building Process and Allocation Method in Initial Public Offerings, which will be effective as of the date of their publication.

The Rules, the Instructions for Companies' Announcements, the Glossary of Defined Terms Used in the Regulations and Rules of the Capital Market Authority, and the Instructions for Book Building Process and Allocation Method in Initial Public Offerings can be viewed via the following link

​His Excellency Mr. Mohammed bin Abdullah Elkuwaiz, Chairman of the Capital Market Authority expressed, in his name and on behalf of the employees of the Authority, gratitude and appreciation to the Custodian of the Two Holy Mosques King Salman bin Abdulaziz Al-Saud, and His Royal Highness Prince Mohammed bin Salman bin Abdulaziz, Crown Prince and Deputy Prime Minister and Minister of Defense, for the Council of Ministers' issuance of the resolution approving the amendment of the Capital Market Law issued by Royal Decree no. (M/30) dated 02/06/1424H.

Mr. Elkuwaiz announced that these amendments aims to enhance the role of the Authority in investor protection, in addition to keeping up with the developments in the international capital markets and contribute in developing the operating institutions in the capital market. His Excellency also stated that the Authority places the responsibility to review and continuously improve the regulatory environment on the top of its priorities, it believes in the importance and impact of that on the growth and development of the Capital Market and its operating institutions in order to achieve the Authority’s vision for the Saudi Capital Market to become the leading market in the Middle East and one of the top ten markets in the world.

Mr. Elkuwaiz stated that the amendments will aid in developing capital market infrastructure institutions and reducing risks, in addition to enabling new classes of securities and attracting foreign investment to the capital market by granting the Authority the power to authorize the capital market infrastructure institutions, which include the Exchange, the Depositary Center and the Clearing Center, in addition to regulating the securities clearing center and activating its role in performing its duties and obligations within the capital market infrastructure institutions.

Mr. Elkuwaiz further added that the amendments will help develop the mechanisms for the compensations of affected investors in the Capital Market by developing the mechanism of the class action suit and activate the affected investors’ compensation funds, and facilitating the provision of the affected persons with the due compensations and expedite the procedures in this regard. His Excellency also stated that the amendments will enhance the efficiency and attractiveness of the Capital Market and raise the level of its soundness and integrity. The amendments will also aim towards achieving fairness in securities transactions, by amending some of the penalties stipulated in the Capital Market Law and granting the Authority some additional powers to address violations in a manner that will enhance the efficiency of deterrence.

It’s worth mentioning that the Authority made its suggestions to amend the Capital Market Law in line with its objectives, responsibilities and initiatives entrusted to it to achieve the objectives and goals of the Saudi Vision 2030, the Financial Sector Development Program, and Financial Leadership Program, taking as guidance the best international regulations and practices. The Authority also took into consideration the recommendation of the Financial Sector Assessment Program (FSAP), which was carried out over the financial sector in Saudi Arabia, in addition to taking into account enhancing the level of compliance with the standards of the International Organization of Securities Commissions (IOSCO), especially where the Kingdom is an official member in the organization’s committees.

​The Capital Market Authority (CMA), represented by the Deputy for Listed Companies & Investment Products in collaboration with the General Authority of Zakat & Tax (GAZT), held a workshop titled "The Mechanism of Zakat Calculation and Zakat for Tradable Real Estate Investment Funds", on Wednesday, 3^rd of July, 2019 in Riyadh. The workshop was part of CMA's efforts to reach out to participants in the capital market and raise awareness of the mechanism for calculating Zakat of tradable real estate investment funds (REITs).

Mr. Abdullah Bin Ghannam, CMA Deputy for Listed Companies & Investment Products, explained that placing tradable real estate investment funds under Zakat is an optional decision for the Fund Manager. However, upon submitting to GAZT, the Fund Manager is obliged to provide declarations submitted to GAZT. Moreover, the Fund Manager has no right to stop cease complying with GAZT after the registration.

The workshop, which was attended by managers of real estate investment funds, financial managers and external auditors of the funds, focused on reviewing the mechanism for calculating Zakat by GAZT, as well as the mechanism for calculating Zakat on tradable real estate investment funds and their impact on returns. During the workshop, participants' comments and suggestions were discussed and their questions were answered. Moreover, the pre-requisites and requirements from Fund Managers wanting to register with GAZT were clarified and explained.

The Capital Market Authority's (CMA) Board approved the "Instructions for the Foreign Strategic Investors' Ownership in Listed Companies" ("the Instructions"), which will be effective as of the date of their publication. These Instructions are aimed at the foreign legal person who intends to own a strategic shareholding in the listed companies, and for which the aim is to promote the financial or operational performance of the listed companies on the long-term ("foreign investor").

Among the most prominent aspects and features of the Instructions are that they allow the non-financial foreign investor to invest in the Saudi capital market after it was focused on financial investors; in addition to not setting a maximum or minimum limit on the ownership percentage of the foreign investor in the listed companies, accompanied with the ease in the procedures for opening accounts and owning shares through the Authorized Persons. Further, the instructions takes into account the imposition of a prohibition period on the foreign strategic investor in respect of disposing of any shares he owned during the two years following the date of ownership of those shares.

In this regard, H.E. Mr. Mohammed bin Abdullah Elkuwaiz, Chairman of the Capital Market Authority mentioned, "the CMA has approved these Instructions as part of opening the capital market and the Saudi economy to the outside world, as we noticed a growing interest from foreign strategic investors to invest in companies listed on the Saudi Stock Exchange".

Mr. Elkuwaiz further added, "the Instructions are complementary to the “Rules for Qualified Foreign Financial Institutions Investment in Listed Securities", approved by the CMA in 2015G and which has witnessed numerous developments since they came into effectivity. However, while the Rules are targeting the qualified foreign financial institutions (Financial Investor), these Instructions are concerned with foreign strategic investors".

It is worth mentioning that since the beginning of 2019, the Saudi Stock Exchange has witnessed increasing foreign cash flows after the beginning of the Saudi Stock Exchange inclusion tranches in the emerging markets indicators. The number of qualified foreign investors increased by 163.7 per cent to become 1,195 investors as of 20/06/2019G, after they were 453 investors at the beginning of the current year. Moreover, the ownership percentage of foreign investors in the Saudi Capital Market has reached 7% as of 20/06/2019G, compared to 4.7% at the beginning of this year.

The Instructions can be viewed via the following link:

​In continuation to the CMA's role in regulating and improving the Capital Market, the CMA has issued its Resolution regarding the procedures undertaken toward companies that apply for opening the Financial Reorganization Procedure.

The CMA Resolution specified the procedures that will be implemented on the listed companies (issuers) when submitting an application to the court for commencing a financial restructuring procedure set under the Bankruptcy Law issued by The Royal Decree number (M/50) dated 28/05/1439H and its Regulation issued by Council of Minister number (622) dated 24/12/1439H, and specified these procedures as follows:

1. Trading of listed securities of an issuer with accumulated loss reaching 50% or more of its paid- in capital shall be suspended upon registering the application for the commencement of a financial restructuring procedure with the court in accordance with the Bankruptcy Law.
2. The suspension of trading pursuant to paragraph (1) above shall be lifted upon the issuance of the court's decision ordering the commencement of the financial restructuring procedure for the issuer in accordance with the Bankruptcy Law, unless the issuer is banned from carrying out its activities by the relevant competent authority.
3. The suspension of trading pursuant to paragraph (1) above shall continue if the court issues its decision rejecting the commencement of the financial restructuring procedure for the issuer in accordance with the Bankruptcy Law, until the expiry of the period specified in Article (150) of the Companies Law, or, prior to that, upon reduction of accumulated losses of the issuer to become below 50% of its paid- in capital.
4. The issuer's securities will be delisted upon the issuance of the court decision terminating the financial restructuring procedure and commencing the liquidation or administrative liquidation procedure for the issuer in accordance with the Bankruptcy Law.

For more information, please click on the link below for the CMA announcement:

​The Board of the Capital Market Authority (Authority) issued its resolution on 15/09/1440H corresponding to 20/05/2019G adopting the Amended Corporate Governance Regulations in light of the amendment of the Companies Law issued by Royal Decree number (M\79) dated 25/07/2018G. The amended Regulations will be effective upon their publication date. These amendments come in continuance to Authority's objectives to regulate and develop the Capital Market and contribute to achieving its strategic objectives by enhancing confidence and raising the level of governance in the Capital Market.

Among the most prominent amendments on Corporate Governance Regulations are the amendment of paragraph (3) of Article 46 which states after the amendment the following: “the chairman of the Board informing the Ordinary General Assembly, once convened, of the competing businesses that the member of the Board is engaged in, after the Board assesses the board member's competition with the company's business or if he/she is in competition with one of the branch activities that it conducts in accordance with the standards issued by the Ordinary General Assembly upon a proposal from the Board and published on the company's website, provided that such businesses are assessed on annual basis." This amendment aims to clarify the General Assembly's power in approving the issuance of standards for the competition of the Board Member with the company's businesses or with any of its activity branches, proposed by the Board of Directors.

Mr. Bader Balghonaim, CMA Deputy of Legal Affairs & Enforcement, has stated that these amendments came in line with the amendments made to Article 72 of Companies Law issued by Royal Decree number (M/79) dated 25/07/2018G, which granted the competent authorities to establish rules for the authorisation of a Board Member's engagement in any business that may compete with the company or with one of its activity branches.

He also pointed out that the Authority, upon the amendment of Article 46 of the Regulations, took into account the protection of shareholders' rights and the powers of the General Assembly. The amendment has granted the General Assembly the right to issue competition standards for the competition of the Board Member with the company's businesses or with any of its activity branches, based on the Board of Directors proposal. That is in order for the General Assembly to ensure and review these standards and their suitability to the Company's activities.

The Authority clarified that it has carefully studied all the opinions and observations received during the public consultation period from the public and concerned people to Governance Regulations, in which the Authority has received between period 19\11\2018 – 19\12\2018G. The Authority would also like to thank all those who contributed their views and observations during the period of public consultation.

The amended Corporate Governance Regulations can be viewed on the Authority's website via the following link:

Corporate Governance Regulations​

​​​The Board of the Capital Market Authority (Authority) issued its resolution on 15/09/1440H corresponding to 20/05/2019G adopting the amended Regulatory Rules and Procedures Issued pursuant to the Companies Law relating to Listed Joint Stock Companies, to be effective upon their publication date. These amendments come in continuance to Authority's objectives to regulate and develop the Capital Market and contribute to achieving its strategic objectives by enhancing confidence and raising the level of governance and disclosure in the Capital Market.

Among the most prominent amendments on the Regulatory Rules and Procedures are the amendment of Part 4 “Buy-back, Sale, Pledge of Shares". This amendment intends to facilitate the company's purchase of its shares, and as the Exchange quarterly discloses the listed companies' buy-back of its shares. The amendments also include adding a new part to the Regulatory Rules and Procedures which provides an authorisation framework for the businesses and contracts that are executed for the company's account in which a board member has direct or indirect interest pursuant to Article 71 of Companies Law, which was in light of the amendments on the Companies Law issued by Royal Decree number (M\79) dated 25/07/2018G.

The amendments to Part 4 “Buy-back, Sale, Pledge of Shares" include deleting the article in which obligating a Company, upon completion of each phase, to announce to the public the results of the Share buy-back transaction at least half an hour prior to the start of the trading session on the day following the completion of each phase of the buy-back transaction. The amendments also include requiring the company to immediately notify the Exchange of its transactions related to shares buy-back and the purpose of such buy-back in order for the Exchange to publish the shares buy-back transactions in the listed companies shares buy-back periodic report..

In regards to the authorisation framework for the businesses and contracts that are executed for the company's account in which a board member has direct or indirect interest pursuant to Article 71 of Companies Law, the amendments include granting the General Assembly the right to delegate its authorisation powers stipulated in paragraph (1) of Article 71 of the Companies Law to the company's Board of Directors, provided that the delegation is in accordance with the following conditions: (The total amount of business or contract or the total of the businesses and contracts during the fiscal year - is less than (1%) of the company's revenues according to the latest audited financial statements and less than 10 million Saudi Riyals, the business or contract falls within the normal course of the Company's business, the business or contract shall not include preferential terms to the board members and shall be in accordance with the same terms and conditions followed by the company with all contractors and dealers, and the business or contract shall not be part of the business and consultation contracts which a board member carries out by a professional license for the company in accordance with Article 3 of Regulatory Rules and Procedures). If these conditions are not fulfilled, an authorisation from the Ordinary General Assembly must be obtained.

Mr. Bader Balghonaim, the CMA Deputy of Legal Affairs & Enforcement, has stated that regulating the authorisation for the transactions and contracts that are executed for the company's account in which a board member has a direct or indirect interest comes in line with the amendments made to Article 71 of the Companies Law issued by Royal Decree number (M/79) dated 25/07/2018G, which granted the competent authorities to establish rules for the authorisation of transactions and contracts that are executed for the company's account in which a board member has interest. He also pointed out that the Authority, upon the preparation of the Rules for Authorisation, took into account the protection of shareholders' rights and safeguarding the powers of the General Assembly on one hand; and on the other hand, it aimed to achieve flexibility in obtaining the authorisation by enabling the General Assembly to delegate the authorisation of the Board of Directors in accordance with the conditions specified in the Regulatory Rules and Procedures, beside any other additional terms that the Ordinary General Assembly may specify.

The Authority clarified that it has carefully studied all the opinions and observations received during the public consultation period from the public and concerned people to the Regulatory Rules and Procedures, in which the Authority has received between period 19\11\2018 – 19\12\2018G. The Authority would also like to thank all those who contributed their views and observations during the period of public consultation.

The Guide of the Amended Regulatory Rules and Procedures can be viewed on the Authority's website via the following link:

The Amended Regulatory Rules and Procedures

Also, an explanatory guide of the authorisation for the transactions and contracts that are executed for the company's account in which a board member has a direct or indirect interest can be viewed on the Authority's website via the following link:

The explanatory guide ​​

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The Capital Market Authority (CMA) has released an electronic service for the disclosure of a deceased's investment assets. This service enables the heirs or their legal agent to review the data of securities and investment accounts that belongs to the deceased person via direct link with the Depository Center and the Authorised Persons. This comes as a part of developing the financial market framework, facilitating the disclosure procedures and helping the heirs in expediting the completion of procedures for the registering the heirs of the deceased.

This service enables the heirs to submit applications for the disclosure, according to specific conditions, via CMA's official website, in addition to the possibility of accessing the deceased investment information at any time. The heirs of the deceased (included in the deed of heirs) or the legal agent of the heirs can apply for the electronic service by submitting an application, which shall include a clear copy of the deed of heirs, and a copy of the death certificate of the deceased both in PDF format, in addition to the National ID number of the heir – if he is a citizen-  or the Iqama number – if he is a resident. In case the applicant is an agent, it must include the number of the power of attorney and a copy of the power of attorney in PDF format. In any case, the applicant must have (Absher) Account to verify its data.

In this regard, CMA Deputy of Legal Affair and Enforcement Mr. Bader Balghonaim stated that the electronic service aims to facilitate the process of submitting the application for the disclosure of a deceased's investment assets and expedite the procedures of such requests. He further noted that this service will enable the submission of the application and reviewing of its information in any time without the need for visiting CMA's headquarters. He stated also that after receiving the application electronically, the applicant's information will be verified, followed by responding to the applicant with information received from the Depository Center and Authorised Persons.

It's worth mentioning that CMA used to receive enquiries applications regarding the deceased's investment assets by the interested parties by visiting CMA's headquarters. The CMA has received more than 500 requests during 2017G, the number has increased on the following year, 2018G, in which it reached more than 600 requests, an increase by 20%.

To use the service and review the conditions of application, please visit the following link:

Disclosure of a Deceased's Investment Assets Service