Saudi Arabia restricts financial firm foreign dealings
The Saudi Capital Market Authority has begun implementing stricter measures on how financial institutions interact with clients in foreign markets, aiming to protect investors and regulate trading activities by establishing clear rules for funding transactions and assessing investment suitability. The initiative includes a minimum margin coverage requirement of 50% on margin trades, as well as a ban on certain high-risk investments, such as instruments with high leverage and stocks that have losses exceeding half of their capital. These regulations are designed to reduce potential losses and improve the oversight of international dealings. The measures will take effect starting November 1, 2026, with a period for stakeholders to provide feedback until October 27, 2026.
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