CMA outlines requirements for Saudi commodity exchange license

Logo of The Capital Market Authority (CMA)

The Capital Market Authority (CMA) issued a list of the main inquiries it has received regarding applications for authorization to conduct commodity exchange activities in the Kingdom, along with its responses, according to a statement.

The document aims to provide parties interested in the sector with information on various aspects of obtaining authorization to conduct commodity exchange activities in the Kingdom and to promote knowledge-sharing among participants in the Saudi capital market.

The CMA earlier said it had begun accepting applications for authorization to conduct commodity exchange activities in the Saudi market on July 1 for a 123-day period ending Oct. 31, 2026.

The regulator said it intends to grant one license to operate a commodity exchange in the Kingdom during the current application period, taking into account the structure of the capital market, investor confidence, and the stability of licensed markets.

The CMA said the Commodities and Metals Market is a financial market licensed by the regulator to conduct activities involving the trading of commodity and metals derivatives contracts in the Kingdom, in accordance with the Capital Market Law, the Regulation on Securities Markets and Depositories, and other relevant regulations and rules.

Fees for obtaining the license comprise a SAR 25,000 application review fee, payable once upon submission of the license application, and an annual SAR 300,000 license continuation fee, payable if the license is granted and remains in effect, in accordance with applicable provisions and deadlines.

The CMA said there are no specific types of commodities or metals prescribed for derivatives contracts. Applicants may specify in their license applications and business plans the commodities and metals they propose to underlie the derivatives contracts, along with the rationale for their selection, proposed products, expected scale of activity, and timeline for their launch.

The CMA also stressed the importance of referring to the Capital Market Law and its relevant implementing regulations to gain a comprehensive understanding of the regulatory requirements for authorization to conduct commodity exchange activities in the Kingdom.