SAUDI ARABIA: CMA Proposes Amendments to Brokerage Licensing Requirements

Friday January 24 2025

On 21^st January 2025, the Capital Market Authority (CMA) proposed amendments to the licensing requirements for brokerage companies outlined in the Capital Market Law.

These amendments focus on the minimum capital requirements and the legal structure that brokerage companies must adopt. The consultation period will last for a period of 30 calendar days ending on 21/08/1446H corresponding to 20/02/2025.​

The proposed amendments include referring the determination of the minimum capital requirements that brokerage companies must continuously meet to the implementing regulations issued by CMA, in a way that provides the necessary flexibility in determining the capital requirements according to the nature of the business that the brokerage companies will be licensed to practice. Currently, the Capital Market Law stipulates that the minimum capital must not be less than SAR 50 million.

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