Saudi Arabia’s financial markets operate under a comprehensive regulatory framework designed to protect investors, ensure transparency and support the Kingdom’s ambition to position itself as a leading global investment destination.

Oversight is anchored in clear legal mandates, robust supervision and steadily evolving rules that align domestic markets with international best practice.

At the centre of the system is the Capital Market Authority, which regulates securities activities, licenses market participants and enforces compliance across the capital markets.

The authority oversees exchanges, brokers, asset managers and listed companies, setting disclosure standards and monitoring trading activity to detect market abuse, insider dealing and manipulation.

Its powers include investigations, financial penalties and trading suspensions, providing credible deterrence against misconduct.

Saudi Arabia’s stock exchange, Tadawul, operates under this regulatory supervision and has introduced modern listing, reporting and governance requirements.

Public companies are subject to detailed disclosure obligations, including periodic financial reporting, immediate announcements of material developments and adherence to corporate governance codes covering board structure, audit controls and shareholder rights.

Investor protection is reinforced through clear rules on market conduct and a defined framework for dispute resolution.

Investors can pursue claims through specialised committees for the resolution of securities disputes, which provide an independent forum for handling complaints against licensed entities.

These mechanisms are designed to offer recourse without lengthy court proceedings, improving confidence among both domestic and foreign investors.

Foreign participation has expanded significantly following regulatory reforms that opened the market to qualified international investors.

Safeguards accompany this openness, including fit-and-proper tests for market participants, capital adequacy requirements and ongoing supervision to ensure financial stability.

Regulatory coordination with the Saudi Central Bank further strengthens oversight across banking, payments and capital markets.

Recent years have seen continued regulatory refinement as part of the Kingdom’s broader economic transformation.

Measures have included tighter disclosure standards, enhanced environmental, social and governance reporting expectations and the introduction of new instruments such as real estate investment trusts and derivatives, all within a controlled regulatory environment.

Together, these elements form a system that balances market growth with investor protection.

By combining strong supervision, transparent rules and effective enforcement, Saudi Arabia’s financial market framework aims to provide investors with confidence while supporting the rapid expansion and internationalisation of its capital markets.