RIYADH: Saudi Arabia has proposed cutting the minimum capital requirement for securities businesses by 60 percent to SR20 million ($5.33 million), as part of broader reforms aimed at easing market entry and modernizing regulations.
The proposed amendments, released by the Capital Market Authority for public consultation, would also introduce differentiated capital requirements for securities dealing activities based on their risk profile, while tightening technology governance and compliance standards.
Under the draft rules, the activities of dealing as principal, underwriting, and executing transactions on a margin basis have been grouped together and would require minimum capital of SR20 million, whilet the dealing as agent activity would require SR10 million.
The CMA also proposed a SR2 million minimum capital requirement for securities crowdfunding activities involving client fund holdings.
The reforms come as Saudi Arabia’s capital market sector grows rapidly, with the number of institutions rising to 215 by the end of 2025 from 86 in 2017, according to the CMA, as the Kingdom moves ahead with financial market reforms under Vision 2030.
