The Organizational Structure of the Saudi Financial Market:

The organizational structure of the Saudi financial market represents an integrated model that has made it the largest, strongest, and most sustainable market in the Middle East. This structural success is based on the institutional separation of legislation, supervision, trading, and support services, thereby strengthening confidence, improving the efficiency of investment risk management, and ensuring investor protection.

The roles within the financial market ecosystem are distributed across five main pillars:

The Five Pillars of the Ecosystem

• Capital Market Law (CML): The governing legislative foundation regulating all financial transactions. It establishes the general rules for protecting investors and ensuring market transparency.
• Capital Market Authority (CMA): The independent regulatory authority responsible for direct supervision, regulating disclosures, ensuring fair competition, and protecting market participants.
• Tadawul: The official market operator, providing an advanced and secure platform for the efficient trading of shares, sukuk, and bonds.
• Edaa: The central securities depository responsible for safeguarding securities, managing ownership records, and executing related transactions.
• Muqassa: The central counterparty that guarantees the execution of trades and manages clearing and settlement risks to limit systemic risks.

Ensuring Fairness and Enforcing the Law

This structure is completed by the existence of a dispute resolution system, represented by the Committee for Resolution of Securities Disputes and the Appeals Committee. It serves as the legal deterrent and the true guarantor of justice and the protection of the rights of all parties.

In conclusion:
“From legislation and supervision to delivery and operations, the Saudi financial market has an institutional structure that separates regulatory and executive functions, supporting growth and strengthening the confidence of both local and international investors.”