The Capital Market Authority (CMA) called upon relevant and interested persons participating in the capital market to share their feedback on the proposed amendments to the licensing requirements for brokerage companies outlined in the Capital Market Law. These amendments focus on the minimum capital requirements and the legal structure that brokerage companies must adopt. The consultation period will last for a period of 30 calendar days ending on 21/08/1446H corresponding to 20/02/2025.​

The proposed amendments aim to enhance the attractiveness of engaging in brokerage activities (currently performed by capital market institutions licensed to carry out dealing or custody business), encourage competition in the field, and stimulate the growth of the asset management industry. This will be achieved by developing the services provided in dealing and custody activities to foster innovation and expand within the capital market.

The proposed amendments include referring the determination of the minimum capital requirements that brokerage companies must continuously meet to the implementing regulations issued by CMA, in a way that provides the necessary flexibility in determining the capital requirements according to the nature of the business that the brokerage companies will be licensed to practice. Currently, the Capital Market Law stipulates that the minimum capital must not be less than SAR 50 million.

Additionally, the proposal includes referring the determination of the legal form required for brokerage companies to the implementing regulations issued by CMA, providing the necessary flexibility to define legal forms based on the nature of the activities licensed for brokerage companies to practice. Currently, the Capital Market Law requires brokers to be joint-stock companies.

The proposed amendments aim to develop the activities of dealing and custody, enabling the introduction of innovative financial products and services. Licensing for these would align with requirements tailored to the characteristics of such products and services, in accordance with global best practices. This move is expected to attract international brokerage companies to enter the Saudi market, thereby stimulating activity in this sector in line with the core pillars and strategic objectives of the Financial Sector Development Program.

The Authority emphasized that the comments of relevant and interested persons shall be taken into full consideration for the purpose of approving the final Proposed Amendments, which in turn shall contribute to the aim of enhancing and developing the regulatory environment. Opinions and comments can be received through any of the following:

•The Unified Electronic Platform for Consulting the Public and Government Entities (Public Consultation Platform), affiliated with the National Competitiveness Canter through the following link: (istitlaa.ncc.gov.sa ).

•The prescribed form through the following email: (Laws.Regulations@cma.org.sa)

The Draft can be viewed via the following link: 

The Draft on the Proposed Amendments to Brokerage Licensing Requirements under the Capital Market Law