CMA seeks public input on improving securitization regulatory framework

Logo of Capital Market Authority (CMA)

The Capital Market Authority (CMA) invited interested parties and capital market players to share their feedback on the draft amendments to improve the regulatory framework for securitization, according to a statement.

The improvement will be through the development of some regulatory provisions in the Rules on the Offer of Securities and Continuing Obligations, the Rules for Special Purposes Entities, and the Glossary of Defined Terms Used in the Regulations and Rules of the Capital Market Authority, the regulator added.

It noted that the consultation period will last for 45 calendar days, ending on June 5, 2026.

According to CMA, the draft aims to deepen the sukuk and debt instruments market in the Kingdom by improving the regulatory framework for securitization operations to be stimulating and enabling, in addition to enhancing the diversity of investment products available in the capital market, thereby supporting a diversified investor base and increasing the market's efficiency and attractiveness to various categories of investors.

The proposed amendments encompass various regulatory aspects aimed at supporting market development. Most notably, they include allowing the public offering of asset-backed debt instruments through securitization operations, alongside developing the regulatory requirements related to the offering of these types of debt instruments.

Besides, it aims to enhance the level of disclosures related thereto, contributing to higher levels of transparency in the capital market and supporting investors' ability to make informed investment decisions based on clear and comprehensive information.

The proposed draft comes as part of CMA's ongoing efforts to develop the regulatory environment of the Kingdom's capital market and to align with international best practices in sukuk and debt instrument markets, contributing to supporting the growth of the capital market and enhancing its role in financing the economy and diversifying investment channels in the Saudi market.