It is mandatory to obtain a license from CMA for all those who want to practice any of the securities business activities in KSA mentioned in Article Two of the Securities Business Regulations. These include: 1) Dealing: where a person deals in a security as principal or as agent, and dealing includes to sell, buy, manage the subscription or underwrite securities; 2) Arranging: where a person introduces parties in relation to offering of securities or arrangement of its underwriting or, advises on corporate finance business;3) Managing: where a person manages a security belonging to another person in circumstances involving the exercise of discretion, or operates investment funds; 4) Advising: where a person advises another person in  relation to a security, which includes advising  on the merits of that person dealing in it, exercising any right to deal conferred by it, or  financial planning and wealth management in it.  5) Custody: where a person safeguards assets belonging to another person which include a security, or arranges for another person to do so, and custody includes taking the necessary administrative measures. However, financial institutions which are licensed by a foreign regulators to perform securities business activities in any other capital market in countries which apply supervisory and regulatory standards similar to the standards applied by CMA or acceptable to it, may conduct business securities activities with a client in the kingdom in accordance with the following;

1. The client is one of the following:
a. An investment company as defined in the Glossary of Defined Terms Used in the Regulations and Rules of the CMA.  
b. A natural person with investment in excess of SAR (50) million, or she/he owns a net asset of no less than SAR (50) million.
2. The request for practicing securities business activities have to be initiated from the client (reverse inquiry) with no marketing of securities business being made from the foreign financial institution.
3. The request for practicing securities business shall not be made on any of the following:
a. securities issued or listed in the Kingdom except bonds issued by Saudi government.
b. a structured product, which the securities issued or listed in the Kingdom constitute (50%) or more of the securities associated with it.​