A new era in the development of the capital market in Saudi Arabia
28/06/2016

​A source at the Capital Market Authority stated that the authority's ongoing strategy is aligned with the Saudi Arabia vision 2030, this strategy includes new developments designed to increase the attractiveness of the Saudi capital market for investors.

The Authority believes that the upcoming phase in capital market development requires the further opening of the market to more local and international investors, increasing the number of listed companies and the size of the market in general. In addition, the development of a vibrant local Sukuk market, introduction of additional investment products, and helping enhance the workings of market institutions through enhanced regulatory rules and procedures is essential.

One of the major new modifications that will be introduced , is changing the transaction settlement cycle of listed shares from (T+0) to (T+2), and the introduction of securities lending and covered short-selling. Thus, requiring financial institutions operating locally to update both their internal systems and procedures to accommodate these developments.

The source confirms that the Authority will continue, through its strategic plan, to strengthen its role in regulating and developing the market, while insuring a safe investing environment through the continuous updating of rules and implementing regulations, encouraging the offering of new securities and investment instruments, and enhancing the disclosure and transparency requirements to insure investor protection and a high level of confidence in the Saudi capital market .