CMA Cancels its Share in Sukuk and Bonds Trading Commission

The Capital Market Authority (“CMA") announced the cancelation of its share in Sukuk and bonds trading commission starting from May 2023.

This step comes as part of the efforts to reduce costs on market participants in a way that enhances liquidity, increases competitiveness in the local market and expands domestic investors' base in government debt issues. The step that shall contribute to achieve the strategic objectives of Vision 2030 related to develop a diversified and effective financial sector to support the development of economy and create an advanced capital market.

By the cancelation decision, CMA affirms its commitment to stimulate activities of debt instruments secondary market, considering such commitments as long-term commitments, without exceptions. This comes in line with CMA's strategic objective relevant to developing Sukuk and debt instruments market to boost its attractiveness to issuers and investors.

CMA hopes this resolution will contribute to stimulating issuers to list local currency-denominated Sukuk and bonds in the Saudi debt instruments market and encouraging investors to trade such instruments in a way that shall help to deepen the market and raise its liquidity, along with diversifying finance choices before public and private sectors by creating a new asset classes available for all investors' segments.  

CMA's decision comes in line with exemptions and changes of the fees in return for debt instrument trades during the last 14 years.

It is worth mentioning that the Sukuk and debt instruments market witnessed a number of developments in the past years, including the face value of government Sukuk from one million Saudi riyal to SAR 1000 as a gesture to increase trading rates in the market. In addition, linking Clearstream with Securities Depository Center Company (“Edaa") internationally and availing debt instruments trades for all foreign investors.