The Capital Market Authority emblem
The Council of the Capital Market Authority has permitted the organizational framework that allows the monetary market establishments that obtained a “association” license to supply debt instruments within the sukuk and debt instruments market by way of collective financing platforms in securities.
Based on an announcement by the authority, this framework comes after the exercise underwent the experiment within the monetary know-how laboratory because the second quarter of 2021 AD, in order that at this time it is among the actions that may be offered by way of the license to apply securities within the “association” exercise.
The authority additionally adopted the modification of the principles of subtracting securities and steady obligations, the principles regulating the services of particular functions, and the listing of economic market establishments, to work with them ranging from the date of their publication.
The organizational framework goals to extend the variety of monetary market establishments training monetary know-how actions available in the market, in addition to increasing the participation of economic market establishments in providing debt instruments within the context of their apply of collective financing in securities, which results in deepening the debt instruments market, and enhancing their attractiveness for exporters and traders, in step with the strategic objectives of the authority.
Essentially the most outstanding components of the primary organizational framework permitted in enabling monetary market establishments are to supply debt instruments within the markets and debt instruments, stipulating acquiring a “association” license to apply the exercise by the monetary market establishments, which allows firms which have a allow to the monetary know-how expertise or these taken with offering the exercise from acquiring the suitable license to apply it as a monetary market establishment, which contributes to diversifying the sources of financing and sustaining firms, and enabling entry to entry Numerous slices of traders to debt instruments.
Based on the permitted organizational framework, solely the requirement for monetary market establishments acquiring a “association” license in securities work got here in the event that they wish to perform this sort of providing, so as to allow them to supply debt instruments by way of collective financing platforms in securities as one of many excluded providing circumstances in accordance with the principles of subtracting securities and steady obligations, with the opportunity of utilizing the particular providing to develop the scope of the focused providing and its measurement.
One of the outstanding components of the organizational framework additionally got here to develop job necessities for registration, and the necessities for preserving buyer cash for monetary market establishments licensed to apply the association work within the context of the apply of collective financing in securities.
The Market Authority emphasised that the work of the monetary know-how firms licensed to apply the exercise talked about within the commercial will proceed inside the monetary know-how laboratory till the tip of the declaration interval, after which it could apply for the suitable license to apply the exercise in accordance with the provisions of the permitted organizational framework, whereas the reception of requests for submitting this exercise inside the monetary know-how laboratory within the authority has been stopped, until it contains an modern facet that have to be skilled, in mild of the issuance of the organizational framework to allow its apply of its apply Earlier than monetary market establishments.
The authority famous that the platforms for the providing and funding instruments in them witnessed a rising exercise throughout its expertise within the monetary know-how laboratory, the place it recorded exceptional development throughout the yr 2024 AD; The worth of the sukuk offered by way of it elevated to about 3.4 billion riyals, in comparison with 1.5 billion riyals in 2023 AD, and the variety of permits granted to hold out this exercise elevated to 17 permits in comparison with 14 permits within the earlier yr.
This dependence comes inside the framework of strengthening the debt instruments market and increasing its funding base; By enabling the monetary market establishments licensed to apply the association work by providing debt instruments within the context of collective financing in securities, inside a undertaking “Creating the organizational framework for the platforms of providing debt instruments and investing in them” Which was beforehand printed by the authority on March 20, 2025 AD on a reconnaissance platform and the web site of the authority.
The foundations for providing securities and ongoing obligations
The foundations governing particular functions services
Listing of economic market establishments
