Capital Market Authority (CMA)
Basic Information
The Capital Market Authority (CMA) of Saudi Arabia is the primary financial regulatory body overseeing the Kingdom’s capital markets, including securities, investment funds, and licensed financial services providers. Established under Royal Decree No. (M/30) dated 2/6/1424H (corresponding to 16 June 2003), the CMA operates with full financial, legal, and administrative independence, reporting directly to the Prime Minister. Its headquarters are located in Riyadh, Saudi Arabia.
Historical Background
Saudi Arabia’s capital market unofficially began in the 1950s and operated under self-regulated frameworks until the government introduced formal regulations in the 1980s. The modern CMA was formally established in 2003 to replace fragmented oversight with a centralized regulatory authority. The current Capital Market Law, enacted under Royal Decree No. (M/30), granted the CMA its statutory powers to regulate and develop the Saudi financial markets, including the Saudi Stock Exchange (Tadawul) and the Securities Depository Center.
Legal Authority & Regulatory Framework
The CMA derives its authority from the Capital Market Law, which mandates the regulation of securities issuance, trading, and market intermediaries. Key regulatory responsibilities include:
- Issuing rules for securities trading and market operations
- Enforcing anti-fraud measures against market manipulation and insider trading
- Supervising licensed Capital Market Institutions (CMIs), including asset managers, brokers, and custodians
- Coordinating with the Saudi Central Bank (SAMA) on monetary and financial policies
Key Responsibilities & Regulatory Scope
The CMA’s core functions focus on market integrity, investor protection, and financial transparency:
- Market Regulation: Oversees Tadawul, the sole securities exchange in Saudi Arabia, and regulates derivatives trading under strict guidelines.
- Investor Protection: Enforces disclosure requirements, monitors unfair practices, and resolves disputes through the Committee for the Resolution of Securities Disputes (CRSD).
- Licensing & Supervision: Authorizes and monitors CMIs, including investment firms, asset managers, and brokerage services.
- Financial Innovation: Supports fintech development through regulatory sandboxes and digital transformation initiatives.
Contact Information
Headquarters Address: Capital Market Authority, Riyadh, Saudi Arabia
Phone: +966 11 205 3000
Hotline: 800 245 1111 (for investor complaints)
Email: Available via the official contact form on the CMA website.
How to Verify a CMA-Regulated Entity
To confirm whether a financial institution is authorized by the CMA:
- Visit the CMA’s official website (cma.org.sa).
- Navigate to the “Authorized Persons” or “Investment Firms” section.
- Search by the company name or license number.
- Cross-check the entity’s regulatory status and permitted activities.
