Saudi Arabia to launch derivatives market by year-end: CMA Chairman

Saudi Arabia is expected to launch the derivatives market by the end of this year, starting with the future contracts, Mohammed Al Kuwaiz, Chairman of the Capital Market Authority (CMA) told Argaam.

There’s great ambition regarding the Saudi market, with planned developments in five aspects, including market liberalization and ease of business and enhancing protection, he said.

Focus is also on encouraging the entrance of strategic investors, and for that purpose regulations will be issued soon, he added.

“Additional products will be developed, including closed-ended funds, a regulation that enables any investment fund of all categories to be listed and traded on the market, that is besides the derivatives market,” Al Kuwaiz said.

The market’s risk management effectively identifies the shortfalls in any issued regulations, he said, pointing out that the qualified foreign investors’ rules were updated three times to reach a suitable version in terms of opportunities and risk.

The REIT funds regulations were also updated in less than one year in order to address any risks that could arise, Al Kuwaiz added.