24 Hrs
Source:
الاقتصادية
Experts assess Saudi trading regulation
The article focuses on the efforts of the Saudi Capital Market Authority to regulate the activities of Saudi investors in foreign financial markets, especially in the U.S. market, which experienced a notable increase in trading volumes and assets during the first quarter of 2026. The regulation aims to establish a clear framework that defines the requirements and controls for foreign trading, with an emphasis on risk management and investor protection, amid the growing interest in trading via digital platforms. This is particularly important given the rise in portfolio turnover and increased trading volumes, which reached 264.4 billion riyals compared to assets valued at 36.5 billion riyals. The article also highlights the risks associated with the use of leverage, which can amplify losses, and explains that the regulation imposes restrictions on margin financing practices. Its goal is to standardize these levels to safeguard investors while maintaining organized access to global markets without encouraging investors to turn to unlicensed foreign intermediaries. Ultimately, the article demonstrates that foreign investment complements the domestic market rather than replacing it, and that the new regulations aim to strike a balance between promoting diversification and managing risks. While the Saudi market continues to hold the largest asset size, the regulation guides investors towards safer and more transparent activities.
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