Welcome to the Saudi Arabia focus edition of Law Update.
One of the key markets in the Middle East and North Africa (MENA) that continues to lead from the front is the Kingdom of Saudi Arabia (KSA). As the largest country in the Middle East and the 18th largest economy in the world, the progress KSA continues to make is underpinned by its Vision 2030 that envisions developing the country as an investment powerhouse and hub that ultimately connects Asia, Europe, and Africa. Given Saudi Arabia’s significance to the regional economy, our team of experts have prepared a range of pertinent articles that provide insights into new laws, regulations, and the legal landscape in the Kingdom.
This edition will provide you with an up-to-date guide on matters such as; the framework issued by the Saudi Central Bank on IT governance, the anti-corruption landscape under Vision 2030; we also provide practical tips for dispute avoidance. This is only a snapshot; there are many more articles within the KSA focus section for you to read, which we hope you will find valuable and enjoyable.Read the edition
In an event held by the Securities & Commodities Authority (‘SCA‘) under the title “The Role of Financial Markets Institutions in Motivating Investment in Securities” H.E. Dr. Obaid Al Zaabi launched the “Investors Rights in Capital Market” guidelines (‘Guidelines’) The Guidelines summarise investors’ rights and the standard of conduct that they should expect from financial service providers. It is helpful for both investors to understand their rights and persons licensed by the SCA to understand the SCA’s expectations of them in the provision of financial services.
The Guidelines list 20 rights to which all investors are entitled when dealing with SCA licenced providers including but not limited to brokerage, trading, investment management, promotion and introductions service providers. In short, the Guidelines provide that a licenced service provider shall:
The Guidelines do not impose new obligations on financial service providers as their obligations are already contained in regulations issued by the SCA. However, the codification of investors’ rights, in an easily accessible and comprehensible document, should motivate investment by establishing trust in the market between licenced providers and investors. Increased trust in the market should lead to increased investments because:
The SCA is also taking further steps to make the market more attractive to investors and increase the access investors have to material by providing information and guidance on a number of social media platforms including Youtube, Facebook, Twitter and Instagram. These steps should assist in making the market more accessible to the modern investor. This move, by the SCA, demonstrates the steps it is taking to achieve its mandate of safeguarding the rights of investors, promoting sound practices, and creating a capital-attractive environment.
Al Tamimi & Company’s Equity Capital Markets team regularly advises on investors’ rights in Capital Markets. For further information please contact Anna Robinson (firstname.lastname@example.org) or Yousef Al Amly (email@example.com).