Annual Survey of International & Comparative Law


On July 31, 2003, the late King Fahd of Saudi Arabia issued Royal Decree number M/3, officially announcing the constitutive law of the securities industry, the Capital Market Law, and leading the Saudi Kingdom into new territory: capital market regulation. For Saudi businessmen, as well as many attorneys, the question “what are securities laws?” is a fair one. Securities laws are the body of rules that regulate certain subjects and issues pertinent to trade in securities, such as the registration and listing of companies in the stock market, securities professionals, the operation of the securities markets, the regulation of investment companies, and public offering of stock. Despite the fact that almost nine years have passed since the enactment of the Capital Market Law, not one comprehensive legal paper has been submitted to explain or discuss the law. This Article attempts to do so by outlining the law of securities relating to securities professionals as laid out in the Capital Market Law and other statutes. Professionals’ fiduciary duties and other legal obligations imposed, such as their duties to the market and their clients, are extensively discussed. Moreover, this article gives a detailed account of the process of offering stock in the Saudi market.

Cite as: 18 Annl. Survey Int'l. Comp. L. 115 (2012).