Capital Market Authority (CMA)

The Capital Market Authority (CMA) is a governmental authority tasked with overseeing and supervising the development and regulation of the capital market in the Kingdom of Saudi Arabia. It issues the necessary laws, regulations, and instructions to implement the provisions of the law, aiming to create a suitable environment that fosters trust, fairness, and efficiency in the issuance of securities. Additionally, it ensures fairness and full disclosure in joint-stock companies and protects investors and market participants. Its headquarters is located in the capital, Riyadh.

The capital market in Saudi Arabia originated informally in the 1950s and remained so until the government established the foundational regulations for the market in the 1980s. Under the "Capital Market Law," issued by Royal Decree No. (M/30) dated August 1, 2003, the CMA was established. It is a governmental authority with financial and administrative independence, reporting directly to the Prime Minister.

The CMA holds several powers, including regulating and developing the capital market, enhancing and developing the methods of institutions and entities involved in securities trading, protecting investors from unfair and improper practices such as fraud, deception, manipulation, or insider trading, ensuring fairness, efficiency, and transparency in securities transactions, developing controls to mitigate risks associated with securities transactions, regulating, organizing, and monitoring the issuance and trading of securities, overseeing the activities of entities under its supervision, and regulating and monitoring the disclosure of information related to securities and their issuers.

It is a closed joint-stock company and the only entity authorized to list and trade securities in Saudi Arabia. It serves as the official source for all information related to executed securities transactions in the market. Tadawul is also an affiliate member of the International Organization of Securities Commissions (IOSCO), as well as a member of the World Federation of Exchanges and the Arab Federation of Exchanges.

The Securities Depository Center Company is a single-person closed joint-stock company wholly owned by the Saudi Tadawul Group. It is the sole entity authorized to conduct operations related to the deposit, transfer, settlement, and registration of ownership of Saudi securities traded in the market, in accordance with the Capital Market Law and related regulations and rules.