Post on 12-Feb-2016
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Financial Sector OverviewSaudi Arabia
Us- Saudi Business Opportunities Forum Chicago April 29, 2010
Some of the Capital Market Regulations Issued.……
Issuance of the Capital Market Law by Royal
Decree 31st July 2003
2003
2006
Issuance of Corporate Governance
Regulations by the CMA 2008
Issuance of Anti-Money Laundering & Counter-
Terrorist Financing Rules by the CMA
2004
Issuance of Securities Business Regulations by the
CMA
2005
Establishment of CMA and Issuance of
Regulations for Offer of Securities
Issuance of Mergers & Acquisitions
Regulations by CMA
2007
Issuance of Investment Fund
Regulations by the CMA
2006
Issuance of Real Estate Investment
Fund Regulations by the CMA
2006
2006
Issuance of Listing Rules by the CMA
2005
Issuance of Authorized Person Regulations by
the CMA
The decentralization of the Financial Sector begins.……
SAMAEstablished 1952
Stock Market Share Trading, Execution & Settlement
Investment Banking Services
Pre-CMA Establishment of the CMA Decentralization of the Financial Sector
Stock Market Share Trading, Execution & Settlement
Commercial Banks’ Lending Activities
Investment Banking Services
Insurance Licensing & Monitoring
Other Traditional Role of a Central Bank
(Money Supply)
CMAEstablished 2004
TadawulEstablished 1984 & Converted to JSC 2007
Hence, the change in the Role of the Commercial Banks..…
Local Commercial Banks
Pre-2001 SAMA Issues Licenses to Foreign Banks in 2001 CMA Established in 2004
Stock Market Share Trading, Execution & Settlement
Lending Activities
Investment Banking Services
Insurance Services
New Licensed Foreign Banks
Regulator: SAMA
Lending Activities
Investment Banking Services
Stock Market Share Trading, Execution &
Settlement
Regulator: SAMA Regulator: CMA
CMA Authorized Person New Licensed Insurance Companies
Insurance Services
Regulator: SAMA
Change in the Responsibilities of the MOCIMOCI
Approve IPO including Feasibility & Valuation of
Issue
Approve Conversion to JSC Status
Monitor JSC Financial Reporting
Approve Allocation of Floated Shares
Monitor JSC Financial Reporting
Approve IPO including Feasibility & Valuation of
Issue
CMA MOCI
Approve Allocation of Floated Shares
Other MOCI traditional role, implement Companies Law,
etc
Other MOCI traditional role, implement Companies
Law, etc
Approve Conversion to JSC Status
The Financial Sector Landscape Today…..
Financial Services• Commercial Banking Services• Investment Banking Services• Insurance Services
Regulations• Companies Law•Capital Market Authority’s Regulations•Banking Control Law
Market ParametersEnd of Period
No of Brokers
New Licensed Brokers
No of listed companies
New Issues
Market cap bn
General Index
1996 - - - - - 1,5311997 - - - - - 1,9581998 - - 62 0 - 1,4131999 - - 64 2 229 2,0292000 - - 66 2 254 2,2582001 - - 67 1 275 2,4302002 - - 68 1 281 2,5182003 - - 70 2 590 4,4382004 - - 73 3 1,149 8,2062005 8 - 77 4 2,438 16,7132006 45 37 86 9 1,226 7,9332007 80 35 111 25 1,946 11,0392008 110 30 124 13 925 4,8032009 110 0 135 11 1,196 6,122
Mar-10 110 0 139 4 1,345 6,801
Thank You