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Capital Market Law

Establishes the Capital Market Authority, the Exchange and the securities depository centre; regulates brokers, portfolio managers, investment funds, offerings and takeovers; criminalises fraud and insider trading; and sets up the Committee for the Resolution of Securities Disputes.

LawRoyal Decree M/302/6/1424H · 31 July 2003Corporate & Business

In brief

Establishes the Capital Market Authority, the Exchange and the securities depository centre; regulates brokers, portfolio managers, investment funds, offerings and takeovers; criminalises fraud and insider trading; and sets up the Committee for the Resolution of Securities Disputes.

Summary of the law

Key points

  • A complaint may be filed with the Committee only after it has been lodged with the CMA and 90 days have passed, unless the CMA allows earlier filing; Committee decisions may be appealed within 30 days (Article 25).
  • Claims under Articles 55–57 are not heard if the complaint reached the CMA more than a year after the complainant should have realised the violation (Article 58).

Penalties

  • On a CMA claim, the Committee may impose up to five years' imprisonment for breaches of Articles 49 and 50, in addition to fines and compensation (Article 57).
  • Article 60 mentions fines of SAR 10,000–100,000 per violation. Many articles are amended, so check the notes under them in the full Arabic text.

A plain-language summary prepared by Al-Bayan Al-Wadih Law Firm, focused on the violations and problems that come up most in daily life. It is not a substitute for the official text or for legal advice.

What it covers

  • The CMA and its powers
  • Brokers and investment funds
  • Fraud and insider trading
  • Securities disputes committee

Timeline

  1. Issued: Royal Decree M/30 · 2/6/1424H
  2. Amendments: Royal Decree M/52 · 13/8/1433H. Amendment to some articles (shown on the law's page at the Bureau of Experts)
  3. Amendments: Royal Decree M/16 · 19/1/1441H. Amendment to some articles (shown on the law's page at the Bureau of Experts)

Full record of amendments and regulations at the official source

Official text at the Bureau of Experts

The authoritative text is in Arabic; the Bureau of Experts publishes English translations for some laws.

Open official source

Full official text

The full official text is in Arabic and is reproduced on the Arabic version of this page, as published by the Bureau of Experts at the Council of Ministers. Read the full Arabic text

Library content is simplified general information for awareness only. It is not legal advice and does not replace the official text. Laws change: always check the official source and consult a lawyer before acting. Library data last reviewed: .

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