Law & Regulation
Capital Market Law
The Capital Market Law establishes Saudi Arabia's statutory capital-markets framework, the CMA's powers, regulated securities activities, market institutions, issuance/disclosure architecture and enforcement mechanisms. Detailed rules sit in specifically named CMA rulebooks rather than one generic implementing regulation. For infrastructure users, it becomes material when a sponsor, project platform or financing vehicle raises capital through securities, uses a special-purpose entity or is subject to listed-company disclosure and market-conduct requirements.
Legal Significance
What This Instrument Does
The Law creates and empowers the CMA, provides for market and depository institutions, regulates securities business and authorization, supports securities offers/listing, prohibits market abuse and establishes investigation, sanctions and dispute-resolution architecture. It does not govern ordinary bilateral lending merely because a financing transaction exists.
Why It Matters
Infrastructure funding can extend beyond bank debt to sukuk, bonds, funds and listed equity. The Law determines the regulatory perimeter and authority for these structures. It also matters when material project developments trigger disclosure obligations for a listed sponsor or issuer.
Key Provisions
- CMA establishment and powers
Creates the regulator and its rulemaking/supervisory authority. Transaction relevance: identifies approvals and binding subordinate rules.
- Market institutions
Provides for exchange, depository and clearing architecture. Transaction relevance: affects issuance, settlement and security holding.
- Regulated securities business
Restricts specified activities to authorized persons. Transaction relevance: validates arranger, manager and adviser roles.
- Securities issuance and offering
Establishes the statutory basis for offers and registration. Transaction relevance: central to sukuk, bond and equity financing pathways.
- Disclosure and continuing obligations
Supports issuer transparency. Transaction relevance: project awards, delays or defaults may become material disclosures.
- Special-purpose and financing structures
Enables rule-based treatment of securities issuers and vehicles. Transaction relevance: relevant to asset-backed or capital-markets financing.
- Market misconduct
Prohibits manipulation, misleading conduct and insider dealing. Transaction relevance: controls handling and use of material non-public project information.
- Books, records and supervision
Supports CMA monitoring. Transaction relevance: creates compliance and diligence requirements for regulated participants.
- Enforcement, sanctions and compensation
Provides remedies and disciplinary consequences. Transaction relevance: regulatory breach can affect issuance timetable and liability.
- Securities disputes
Establishes specialist adjudicatory mechanisms. Transaction relevance: determines forum and remedy for capital-market claims.
When You Would Use This
Structuring a sukuk, bond, equity or other securities financing.
Determining whether an adviser or intermediary requires CMA authorization.
Reviewing offer, registration or listing requirements.
Assessing listed-company disclosure of a major project event.
Handling inside information during bidding, financing or M&A.
Analysing a CMA investigation or securities dispute.
InfraLex Relevance
The Law is one of the multiple Banking & Finance Primaries. The Rules on the Offer of Securities and Continuing Obligations are its separate Lean child; other CMA rulebooks remain specialist source intelligence unless separately approved.
Legal Framework Position
- Banking & FinancePrimary / Framework Instrument
Instrument Overview
- Official Citation
- Royal Decree M/30, 2/6/1424H, as amended
- Instrument Type
- Law / Act
- Source Language
- Arabic
- Last Verified
- 6 September 2026