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The Capital Market Authority Publishes the Draft Instructions for Shariah Governance in Capital Market Institutions for Public Consultation

As part of the Capital Market Authority's ("CMA") strategic objectives to develop the capital market, and based on the Capital Market Law issued by Royal Decree No. (M/30), dated 2/6/1424 H, the CMA's Board issued its resolution to publish the draft Instructions for Shariah Governance in Capital Market Institutions (the “Draft Instructions"), for public consultation for a period of (15) calendar days ending on 20/8/1443H corresponding to 23/3/2022G.

The Draft Instructions aims to set the rules and standards for Shariah governance in Capital Market Institutions that provide, wholly or partially, products or services that are compliant with the rules and principles of Shariah.

The main elements of the Draft Instructions are as follows:

  1. Regulating the responsibilities of the board of directors or equivalent and the executive management in Capital Market Institutions that provide, wholly or partially, products or services that are compliant with the rules and principles of Shariah.
  2. Regulating the work of Shariah Committee, including the provisions for its formation, membership, meetings, and responsibilities, and defining the functions and tasks of the chairperson of the Shariah Committee, and the tasks and duties of its members.
  3. Regulating the Shariah Committee's independence and its reporting structure, and defining the tasks of Shariah compliance and internal Shariah audit functions.
  4. Regulating the procedures for the development process of products and services that are compliant with the rules and principles of Shariah.

    The CMA, with full gratitude, would receive the opinions and comments of relevant and interested persons, through any of the following:
  1. The Unified Electronic Platform for Consulting the Public and Government Entities (Public Consultation Platform), affiliated with the National Competitiveness Center, through the following link: (istitlaa.ncc.gov.sa).
  2. The prescribed form through the following email: (Laws.Regulations@cma.org.sa).

    All comments will be taken into full consideration for the purpose of finalizing the Draft Instructions.

    The Draft Instructions can be viewed via the following link:

The Draft Instructions For Shariah Governance In Capital Market Institutions

Prescribed form for providing comments