Download Financial Sector Overview - US-Saudi Arabian Business Council

Financial Sector Overview
Saudi Arabia
Us- Saudi Business Opportunities Forum
Chicago April 29, 2010
Some of the Capital Market Regulations Issued…….
Establishment of CMA
and Issuance of
Regulations for Offer of
Securities
Issuance of Listing
Rules by the CMA
Issuance of Corporate
Governance
Regulations by the
CMA
Issuance of Anti-Money
Laundering & CounterTerrorist Financing Rules by
the CMA
2008
2006
2004
2006
2005
2003
Issuance of the
Capital Market
Law by Royal
Decree 31st July
2003
2006
Issuance of Securities
Business Regulations by the
CMA
2006
2005
Issuance of Authorized
Person Regulations by
the CMA
Issuance of
Investment Fund
Regulations by the
CMA
Issuance of Real
Estate Investment
Fund Regulations by
the CMA
2007
Issuance of Mergers
& Acquisitions
Regulations by CMA
The decentralization of the Financial Sector begins…….
Pre-CMA
SAMA
Established 1952
Establishment of the CMA
CMA
Established 2004
Decentralization of the Financial Sector
Tadawul
Established 1984 & Converted to JSC 2007
Commercial Banks’ Lending
Activities
Investment Banking Services
Stock Market Share Trading,
Execution & Settlement
Insurance Licensing &
Monitoring
Other Traditional Role of a
Central Bank
(Money Supply)
Investment Banking Services
Stock Market Share Trading, Execution & Settlement
Hence, the change in the Role of the Commercial Banks…..
Pre-2001
Local Commercial Banks
Lending Activities
SAMA Issues Licenses to Foreign Banks in
2001
New Licensed Foreign Banks
CMA Established in 2004
CMA Authorized Person
Lending Activities
Investment Banking Services
Investment Banking
Services
Stock Market Share Trading,
Execution & Settlement
Stock Market Share
Trading, Execution &
Settlement
Insurance Services
Regulator: SAMA
New Licensed Insurance
Companies
Insurance Services
Regulator: SAMA
Regulator: CMA
Regulator: SAMA
Change in the Responsibilities of the MOCI
MOCI
CMA
Approve Conversion to
JSC Status
Approve Conversion to JSC
Status
Monitor JSC Financial
Reporting
Monitor JSC Financial
Reporting
Approve IPO including
Feasibility & Valuation of
Issue
Approve IPO including
Feasibility & Valuation of
Issue
Approve Allocation of Floated
Shares
Approve Allocation of
Floated Shares
Other MOCI traditional role,
implement Companies Law,
etc
MOCI
Other MOCI traditional role,
implement Companies Law,
etc
The Financial Sector Landscape Today…..
Financial Service Providers
• Commercial Banks
• Investment Companies
• Insurance Companies
Financial Services
Regulators & The Exchange
• SAMA: Central Bank
• MOCI: Ministry of Commerce
• CMA: Capital Market Authority
• Tadawul: The Exchange
• Commercial Banking Services
Regulations
• Companies Law
• Investment Banking Services
•Capital Market Authority’s Regulations
• Insurance Services
•Banking Control Law
End of
Period
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
Mar-10
No of
Brokers
8
45
80
110
110
110
Market Parameters
New Licensed No of listed
Brokers
companies
62
64
66
67
68
70
73
77
37
86
35
111
30
124
0
135
0
139
New
Issues
0
2
2
1
1
2
3
4
9
25
13
11
4
Market
cap bn
229
254
275
281
590
1,149
2,438
1,226
1,946
925
1,196
1,345
General
Index
1,531
1,958
1,413
2,029
2,258
2,430
2,518
4,438
8,206
16,713
7,933
11,039
4,803
6,122
6,801
Thank You