Capital Market Law

The Saudi Arabian Capital Market Law is the regulatory framework that governs transactions in the capital market, covering the issuance, trading, and exchange of securities, including shares, bonds, and other financial instruments. It was designed by the Capital Markets Authority to protect investor rights, ensure market stability, and promote transparency and public disclosure. This entry discusses its historical development, tracing its development from its beginnings in the 1990s to recent changes in the 2020s. Regulation has continually adapted to the changing environment of the capital market by addressing emerging economic needs and global financial dynamics. Saudi Arabia’s Capital Markets Law, administered through the Capital Markets Authority, provides a robust regulatory framework necessary to maintain a stable, transparent, and well-functioning capital market that helps economic growth and investor protection.