Saudi Arabia’s Capital Markets Authority (CMA) has opened a public consultation on proposed amendments to brokerage licensing requirements in the Capital Market Law, focusing on how minimum capital requirements and the required legal structure for brokerage companies are set. The proposal would move both the determination of minimum ongoing capital and the required legal form from the law into CMA implementing regulations, to allow requirements to be tailored to the nature of the brokerage business. The Capital Market Law currently sets a minimum capital floor of SAR 50 million and requires brokers to be joint-stock companies. The CMA also frames the changes as supporting the development of dealing and custody activities, enabling innovative products and services with licensing requirements aligned to their characteristics, and potentially encouraging international brokerage firms to enter the Saudi market. The consultation runs for 30 calendar days and closes on 20 February 2025, after which feedback will be considered in finalising the proposed amendments.
Saudi Arabia Capital Markets Authority 2025-01-21
Saudi Arabia Capital Markets Authority launches consultation on proposed brokerage licensing changes to minimum capital and legal form rules
Saudi Arabia’s Capital Markets Authority (CMA) is consulting on amendments to brokerage licensing requirements in the Capital Market Law. The proposal aims to shift the determination of minimum capital and legal structure from the law to CMA regulations, allowing for tailored requirements. This change is intended to support the development of dealing and custody activities and attract international brokerage firms to the Saudi market.