Business · Markets · 13 hrs ago
Saudi regulator tightens rules for investing in overseas markets
Saudi Arabia’s Capital Market Authority has tightened rules for overseas investing by financial firms.
The rules aim to protect investors and reduce risks in securities transactions outside the kingdom.
Firms must check that investments are suitable for clients before they begin dealing in overseas markets, and repeat the check if circumstances change significantly.
They must disclose benefits they or others may receive from client assets or information and get the client’s separate, written consent before taking them.
For margin trades, firms must collect an initial margin of at least 50% of the transaction value and ensure it does not fall below 25% of each position’s current value.
Margin trading is barred for certain leveraged and commodity-linked securities, including leveraged exchange-traded funds.
The rules take effect immediately, and firms must bring arrangements for existing clients into compliance by 31 December 2026 without affecting their current investment positions.
Saudi Arabia’s Capital Market Authority has tightened requirements for financial market institutions dealing in markets outside the Kingdom.
The rules include suitability checks before clients begin overseas trading and require explicit, written and separate consent for certain uses of client assets or information.
Institutions must collect an initial margin of at least 50% before a trade and monitor margin daily.
Margin trading is prohibited for specified leveraged products and securities linked to commodities, metals and volatility indices.
The rules take effect from the date of the authority’s decision, and institutions must adjust arrangements for existing clients by 31 December 2026.
- Who
- Saudi Arabia’s Capital Market Authority issued the requirements for financial market institutions.
- What
- The authority tightened rules for dealing in overseas markets, including suitability, client consent, securities lending and margin requirements.
- When
- The authority announced the requirements on 29 October 2026. Existing-client arrangements must be adjusted by 31 December 2026.
- Where
- Financial markets outside Saudi Arabia.
- Why
- To protect investors and reduce risks linked to securities transactions.
This story does not have two clearly opposing sides.
The authority published the proposed rules for public consultation.
The authority announced the requirements for financial market institutions.
The new provisions take effect.
Institutions must adjust arrangements for existing clients without affecting their existing investment positions.
- Initial margin
- At least 50% of the transaction value before execution
- Daily margin threshold
- Must not fall below 25% of the current value of each investment position
- Existing-client deadline
- 31 December 2026
- Consultation period
- 30 calendar days from 27 September 2026
What people are saying
ensuring investor protection and limiting the risks associated with securities transactions
the institution must obtain the client’s explicit, written consent, independent of any other consent