The Capital Market Authority (CMA) in Saudi Arabia unofficially started in the early fifties, and continued to operate successfully, until the government set its basic regulations in the eighties. The current Capital Market Law is promulgated and pursuant to Royal Decree No. (M/30) dated 2/6/1424H, which formally brought it into existence. The CMA is a government organization applying full financial, legal, and administrative independence, and has direct links with the Prime Minister.
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.
◾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 CMA is governed by a Board of 5 full-time Commissioners appointed by a Royal Decree:
◾Mr. Mohammed bin Abdullah Elkuwaiz Vice Chairman
◾Dr. Abdulrahman M. Al Barrak Member
◾Dr. Tariq bin Abdullah AlNaeem Member
◾Mr. Wail bin Mohammed AlKahtani Member