The Regulators of the Saudi Arabia Stock Market

    Capital Market Authority

    The Capital Market Authority (CMA) is the financial regulatory authority of The Kingdom of Saudi Arabia (KSA). The CMA is a government organization with financial, legal and administrative independence. It reports directly to the Prime Minister and has a board of five full-time members appointed by Royal Order governing the CMA.  

    The functions of the CMA are to regulate and develop the Saudi Arabian capital market. It issues the required rules and regulations for the implementation of the provisions of the Capital Market Law aimed at creating an appropriate investment environment. The CMA is vested with comprehensive legal powers under the following legislation with a view to regulating and supervising the financial system.  

    The CMA’s duties and authorities comprise the following: 

    • 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.  

    The Saudi Arabian Monetary Authority 

    The Saudi Arabian Monetary Authority (SAMA), the central bank of the KSA, was established in 1952. SAMA performs the following primary functions: 

    • To deal with the banking affairs of the Government; 
    • Minting and printing the national currency (the Saudi Riyal), strengthening the Saudi currency and stabilizing its external and internal value, in addition to strengthening the currency’s cover; 
    • Managing the Kingdom’s foreign exchange reserves; 
    • Managing the monetary policy for maintaining the stability of prices and exchange rates; 
    • Promoting the growth of the financial system and ensuring its soundness; 
    • Supervising commercial banks and exchange dealers; 
    • Supervising cooperative insurance companies and the self-employment professions relating to the insurance activity; 
    • Supervising finance companies; 
    • Supervising credit information companies.  

    Ministry of Commerce  

    The Ministry of Commerce (MC) is working to enhance the potential of both commerce and investment sectors and protect the beneficiaries' interests, by developing and implementing effective and efficient policies and mechanisms, which will contribute to achieving sustainable economic development.  

    Summary:

    • The CMA is a government organization with financial, legal and administrative independence. It reports directly to the Prime Minister.  
    • The Saudi Arabian Monetary Authority as the central bank of the Kingdom of Saudi Arabia was established in 1952.  
    • The Ministry of Commerce (MC) is working to enhance the potential of both commerce and investment sectors and protect the beneficiaries' interests.  
    The Information presented above is for information purposes only, which shall not be intended as and does not constitute an offer to sell or solicitation for an offer to buy any securities or financial instrument or any advice or recommendation with respect to such securities or other financial instruments or investments. When making a decision about your investments, you should seek the advice of a professional financial adviser and carefully consider whether such investments are suitable for you in light of your own experience, financial position and investment objectives.
    IN NO EVENT SHALL SAHM CAPITAL FINANCIAL COMPANY BE LIABLE FOR ANY DAMAGES, LOSSES OR LIABILITIES INCLUDING WITHOUT LIMITATION, DIRECT OR INDIRECT, SPECIAL, INCIDENTAL, CONSEQUENTIAL DAMAGES, LOSSES OR LIABILITIES, IN CONNECTION WITH YOUR RELIANCE ON OR USE OR INABILITY TO USE THE INFORMATION PRESENTED ABOVE, EVEN IF YOU ADVISE US OF THE POSSIBILITY OF SUCH DAMAGES, LOSSES OR EXPENSES.
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