cma saudi: Regulation and Supervision of the Saudi Financial Market and Latest

The Saudi Capital Market Authority (cma saudi) was established under the Capital Market Law issued in 2003 to serve as the regulatory and supervisory authority for the Saudi capital market. The Authority’s mission is to regulate and develop the financial market, oversee trading in stocks, bonds, sukuk, and investment funds, in addition to monitoring securities firms, funds, and insurance companies. The Authority acts as a safeguard to ensure all market participants adhere to professional standards and apply laws that protect investors and combat unfair practices. The Authority is overseen by an executive board comprising financial and economic experts who set general policies and supervise the implementation of regulations and rules. cma saudi continuously updates the market’s legislative framework in line with local and international economic conditions, aiming to support the stability and growth of the Saudi financial market.

cma saudi seeks to achieve a set of strategic objectives, all aimed at developing the Saudi financial market, ensuring investor rights protection, and enhancing integrity and transparency. Key objectives include:
- Protecting investors from fraud, manipulation, and unfair practices.
- Developing the regulatory environment to attract local and foreign investments.
- Raising the level of transparency and disclosure in the financial market.
- Promoting compliance with international standards in financial reporting and corporate governance.
- Supporting Vision 2030 by encouraging IPOs and diversifying available investment instruments.
- Contributing to financial market stability and reducing systemic risks.
The Authority works to achieve these objectives by enacting laws and regulations, monitoring compliance, and intervening when necessary to protect the interests of all market participants.

Recent years have seen significant developments in cma saudi’s policies and regulations, most notably the full opening of the Saudi financial market to foreign investors. In January 2026, the Authority announced a new regulatory framework allowing all foreign investors to invest directly in the main market without the need for qualified investor status. The Authority also abolished the regulatory framework for Swap Agreements, which were previously used to enable foreigners to benefit economically from listed shares indirectly. These steps followed a series of gradual reforms that began in July 2025, making it easier for certain categories of foreign investors, especially those from Gulf countries, to open investment accounts. These changes aim to increase market liquidity, attract new foreign capital, and enhance the Saudi market’s regional and global standing.

cma saudi’s decision to open the Saudi financial market to all categories of foreign investors has led to significant structural changes. The value of foreign ownership in the Saudi market rose to around SAR 590 billion by the end of Q3 2025. Many observers expect that removing regulatory restrictions will increase foreign investment inflows, deepening the financial market and improving its liquidity and efficiency. The decision has also improved the Saudi market’s ranking among global emerging market indices, making it more attractive for IPOs and international companies. This step is part of the Authority’s vision to position Saudi Arabia as a regional and international financial hub and enhance the competitiveness of local markets against peers in the UAE, Qatar, and other regional countries.

cma saudi plays a pivotal role in supervising companies listed on the Saudi financial market, imposing high standards of governance, transparency, and disclosure. The Authority’s responsibilities include monitoring companies’ compliance with periodic disclosures, financial reports, and material announcements that may affect investor decisions. The Authority imposes penalties and fines on companies that violate disclosure rules or mislead shareholders. It also requires the application of governance standards according to international best practices and continually develops regulations to ensure the protection of all shareholders’ rights and fairness in decision-making within listed companies. These policies help build a more transparent and trustworthy financial market.

Investor protection is at the core of cma saudi’s priorities, through combating all forms of fraud, manipulation, and unfair practices in the market. The Authority relies on an advanced monitoring system to detect suspicious transactions or unusual trading activities and investigates financial violations and insider trading. The Authority has the power to suspend trading in emergencies and impose fines or delist companies or violating shareholders when necessary. It also organizes awareness campaigns to protect retail investors from fraud or misleading speculation. All these efforts aim to strengthen confidence in the financial market and make it a safe environment for all.

cma saudi plays a key role in achieving the goals of Saudi Vision 2030, which focuses on diversifying the Saudi economy and enhancing its position as a regional and global financial center. The Authority works on developing the financial market infrastructure, adopting global best practices in regulation and supervision, and encouraging companies to list and go public. It also supports innovation in financial products by introducing new investment instruments such as sukuk, bonds, real estate investment trusts (REITs), and futures contracts. Thanks to these efforts, the number of listed companies and new listings increased significantly in 2024 and 2025, reflecting the Authority’s success in creating a dynamic and attractive investment environment for local and international capital.

Under cma saudi’s supervision, the Saudi financial market is classified as the largest in the Middle East and North Africa in terms of market capitalization and number of listed companies. The Saudi market competes with regional markets such as Dubai Financial Market and Abu Dhabi Securities Exchange in attracting investments and IPOs. The Authority enhances market competitiveness by continually updating regulations, adopting international standards such as IFRS in financial reporting, and joining global organizations like IOSCO. These policies make the Saudi market more transparent and attractive to global investors and help bridge the gap between the local market and advanced global markets. The Authority also supports government efforts to improve Saudi Arabia’s ranking in ease of doing business and attracting foreign capital.

Latest data indicates that the total market capitalization of companies listed on the main financial market reached around SAR 9–10 trillion by the end of 2024, with over half a trillion riyals in the parallel market (Nomu). The main market index (TASI) rose to nearly 12,200 points by the end of Q3 2024. The number of companies listed on the main market is about 200, and around 150 companies are listed on the parallel market. Daily trading volumes grew by more than 40% in the first nine months of 2024 compared to the same period in 2023. Foreign investor ownership exceeded SAR 590 billion in Q3 2025. These figures reflect the market’s dynamism and its growing appeal to both local and international investors.

cma saudi has an advanced supervisory system operating around the clock to monitor suspicious transactions or regulatory violations. Upon detecting violations, the Authority initiates detailed investigations, which may include requesting financial disclosures, summoning company representatives, or cooperating with judicial authorities. The Authority also has the power to impose financial and administrative sanctions, including fines, temporary or permanent trading suspension, delisting companies or individuals, or referring cases to competent authorities. These mechanisms aim to ensure all parties comply with laws and to strengthen confidence in the Saudi investment environment. The Authority also publishes periodic reports on monitoring results and actions taken against violators.

cma saudi adheres to international standards and participates in global regulatory organizations such as the International Organization of Securities Commissions (IOSCO). It also cooperates with local bodies like the Saudi Central Bank (SAMA), the Ministry of Finance, and the Ministry of Commerce to ensure policy and regulatory integration. Internationally, the Authority participates in combating money laundering, terrorist financing, and exchanging regulatory expertise with counterparts in emerging and global markets. The Authority adopts International Financial Reporting Standards (IFRS) to facilitate the acceptance of the Saudi market by foreign investors, positively impacting the Kingdom’s ranking in global indices. All these efforts enhance the Saudi market’s position as a financial center reflecting best international practices.

cma saudi places great importance on communication with investors and stakeholders. The Authority publishes all its decisions and regulatory updates on its official website and provides communication channels via social media platforms. It launched the Unified Public Consultation Platform to publish drafts of new regulations and legislations before approval, aiming to involve the public and stakeholders in the regulatory decision-making process. Additionally, the Authority organizes awareness and training programs for retail investors about their rights, potential risks, and ways to protect themselves from fraud or illicit speculation. These efforts aim to enhance financial literacy and increase investor awareness, positively impacting market stability.

To deepen the market and attract a diverse range of investors, cma saudi has developed new investment products such as government sukuk and bonds, real estate investment trusts (REITs), equity and index futures contracts, and repo markets. These products offer investors broader options to manage their portfolios and diversify sources of returns and risks. The new products also enhance market liquidity and support the Saudi market’s ability to compete with global markets. The Authority continuously reviews and updates regulations related to these products to ensure their attractiveness and compliance with international standards.

Despite the significant achievements of cma saudi in developing the Saudi financial market, there are future challenges that require ongoing efforts. Key challenges include enhancing governance and transparency with the increasing number of new listings, dealing with global fluctuations in interest and oil prices, and improving the market’s technical infrastructure. The Authority also aims to develop more innovative financial products, improve the Kingdom’s ranking in global indices, and increase the confidence of local and international investors in the regulatory environment. The Authority will continue to focus on updating regulations, strengthening supervision, and developing human resources to ensure the sustainable growth of the Saudi financial market and achieve Vision 2030 targets.