Former CMA Chairman: 2006 market crash was normal

Former Chairman of the Saudi Capital Market Authority (CMA) Abdul Rahman Al-Tuwaijri

Former Chairman of the Saudi Capital Market Authority (CMA) Abdul Rahman Al-Tuwaijri said that the stock market collapse of 2006 was a normal phenomenon and occurred in similar capital markets.

At the time, the CMA was newly established and the regulations were not completed, he added in an interview to Rotana Khalejia.

He noted that the large demand of traders after the offerings of some companies and the continuous rise brought more traders to the market, which is what happens in other markets where a bubble is formed and bursts later the collapse occurs.

Al-Tuwaijri denied what was circulated about the existence of a conspiracy during that period, indicating that there were many violations that were worked on during his tenure, but they required a long time to develop, and the Committee for Resolution of Securities Disputes was established and issued decisions.

Regarding the 2008 crisis, he indicated that the crisis was global and began in the US due to the mortgage crisis that cast a shadow on other markets, including the local market.

Al-Tuwaijri took helm at CMA following Jammaz Al-Suhaimi in May 2006 and continued until February 2013.