Saudi Arabia’s Capital Market Authority reiterated on October 29, 2026 that capital market institutions must comply with requirements governing dealing in overseas markets, including client suitability, asset protection and margin trading.
Suitability and separate consent
Suitability must be assessed before dealing begins and reassessed when a material change requires it. Benefits derived by an institution or another party from a client’s property, information or opportunities require full disclosure and explicit, separate written consent, including securities lending and payment for order flow.
50% initial margin
Institutions must collect at least 50% of transaction value before execution and monitor margin daily so it does not fall below 25% of each position’s current value. Margin transactions in leveraged securities, including leveraged ETFs, and securities linked to commodities, metals or volatility indices are prohibited, directly or through other parties.
What should investors watch?
The stated future deadline for aligning arrangements for existing clients is December 31, 2026, without affecting their existing investment positions. Investors using overseas markets should review their broker’s margin terms and separate consent arrangements.
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