Market infrastructure – Saudi Arabia
Institutions and organisations
Stock Exchanges and related institutions
- Saudi Exchange
Saudi Exchange was established on 19 March 2007 after the approval from the Council of Ministers. This was in accordance with Article 20 of the Capital Market Law establishing Saudi Exchange as a joint stock company. Saudi Exchange is the sole entity authorised in the Kingdom of Saudi Arabia to act as the Securities Exchange (the Exchange). Saudi Exchange is considered the largest capital market in the Middle East and North Africa.
On 26 February 2017, Saudi Exchange launched the Saudi Parallel Market (Nomu) as a parallel equity market with lighter listing requirements to provide companies an alternative platform for the public listing.
CSD
- Securities Depository Center Company (Edaa)
Edaa was established in 2016 as a closed joint stock company in accordance with the Saudi Companies Law issued by Royal Decree No. M/3 dated 28/01/1437.
The principal activity of Edaa is to operate and maintain the Depository and Settlement System (DSS), an electronic book-entry system used to record and maintain securities and to register the ownership of securities. Edaa also offers several added-value services such as the management of issuers’ general assemblies (AGM) including remote voting services (e-Voting), reporting, notifications and maintenance of critical core data as well as providing other related services. Edaa provides custody for equity, debt, Sukuk and bonds, ETFs, REITs, mutual funds and other financial instruments in the Saudi Arabian capital market.
Central Bank/Regulators
- Saudi Central Bank (SAMA)
SAMA is the Central Bank of Saudi Arabia. The SAMA’s functions include issuing the national currency, Saudi Riyal (SAR), supervising commercial banks, managing foreign exchange reserves, promoting price and exchange rate stability and ensuring the growth and soundness of the financial system, operating a number of cross-bank electronic financial systems such as MADA (previously SPAN), SARIE and SADAD. - Capital Market Authority (CMA)
The CMA’s functions are to regulate and develop the Saudi Arabian Capital Market by issuing required rules and regulations for implementing the provisions of Capital Market Law. The basic objectives are to create an appropriate investment environment, boost confidence, and reinforce transparency and disclosure standards in all listed companies and moreover to protect the investors and dealers from illegal acts in the market. The CMA is entrusted with the following duties:- Regulate and develop the capital market and promote appropriate standards and techniques for all sections and entities involved in securities trade operations.
- Protect investors and the public from unfair and unsound practices involving fraud, deceit, cheating, manipulation and inside information trading.
- Maintain fairness, efficiency and transparency in transactions of securities.
- Develop appropriate measures to reduce risks pertaining to transactions of securities.
- Develop, regulate and monitor the issuance of securities and under-trading transactions.
- Regulate and monitor the activities of entities working under CMA.
- Regulate and monitor full disclosure of information related to securities and issuers.
Regulatory structure
Regulations
Saudi Arabia’s securities laws and regulations are embodied in the Capital Market Law.
Details of the laws and regulations referred to are available on the CMA website (Arabic only).
Instructions for International Central Securities Depositories were approved by the board of the Capital Market Authority pursuant to its Resolution number (1-57-2021) dated 22/9/1442H corresponding to 4/5/2021G.