CMA investor compensation falls 68% to SAR 124.7M in 2025

Logo of Capital Market Authority (CMA)

The Capital Market Authority (CMA) said compensation awarded to investors through final rulings issued by the Committees for Resolution of Securities Disputes fell 68% year-on-year (YoY) to SAR 124.7 million in 2025, marking the lowest level in five years.

In its annual report, the market regulator said 445 investors received compensation during the year, compared with 921 in 2024.

The CMA said it established three compensation funds in 2025 for investors affected by violations confirmed through committee rulings.

The authority added that the funds were established and managed in accordance with distribution plans approved by the Committees for Resolution of Securities Disputes. The plans covered compensation for investors harmed by violations related to shares of Watani Iron Steel Co., Dar Al Arkan Real Estate Development Co., and Al Kathiri Holding Co.

More than 20,000 investors benefited from these compensation programs.

Compensation awarded against unlicensed securities business operators accounted for the largest share of total investor compensation in 2025, totaling SAR 79.3 million, or 64% of the overall amount.

Compensation awarded against capital market institutions amounted to SAR 27 million, representing 22% of total compensation granted during the year.

No compensation was awarded in relation to class-action lawsuits in 2025, compared with SAR 90.8 million in 2024, contributing to the decline in overall investor compensation. The drop was due to the exclusion of compensation awarded in two class-action cases, as the rulings remain non-final and are still under appeal.

The CMA said illicit gains and fines imposed through final rulings issued by the Committees for Resolution of Securities Disputes totaled SAR 125.99 million in 2025.

It added that it completed the procedures necessary to address 143 cases in 2025, out of 226 cases referred by its enforcement departments.

According to the report, the strategic indicator measuring the average litigation period continued to improve, with the average time taken to process violations—from the detection of suspected misconduct to case closure and the adoption of appropriate action—declining to 3.2 months in 2025 from four months in 2024.

The CMA also said it issued enforceable decisions against 199 violators for breaches of laws and regulations under its jurisdiction and followed up on the implementation of 56 requests.

The authority said its efforts to complete the procedures required to address violations of the laws and regulations it oversees reflect its commitment to protecting investors and market participants and strengthening confidence in the Saudi capital market.