CMIC supports market development, enhances communication with CMA: Vice Chairman

The Capital Market Institutions Committee (CMIC), in its last term, discussed several important topics, including proposing initiatives on developing the Capital Market Authority’s (CMA) strategic plan, which is one of the Financial Sector Development Program’s pillars within the Kingdom’s Vision 2030, the committee’s Vice Chairman Naif Al Degaither said.

In a statement to Argaam, on the sidelines of the Capital Market Institutions Forum 2024, he said that the committee submitted proposals related to Zakat on investment funds, presented visions on ways to develop the human capital of capital market institutions, and worked to develop the work governance of the committee and its subcommittees.

He pointed out that the CMIC talked over important legislative aspects, including enabling capital market institutions to open “omnibus accounts" for their clients, a decision that the authority recently approved, stressing that the members of the committee, through their various experiences and their representation of the capital market institutions, contribute to pushing the capital market development towards a sustainable future.

On the role of the CMIC, Al Deghaither explained that the committee is elected by executives in the capital market institutions and plays a key role in enhancing communication between the market institutions and the CMA, as well as raising discussions on important sector issues and studying challenges to boost the capital market’s growth and development.

He pointed out that the committee discusses the topics raised by the authority and presents its views and proposals on them. It also organizes workshops and contributes to holding awareness exhibitions and forums, the most prominent of which is the annual Capital Market Institutions Forum and its workshops.

Meanwhile, he noted that due to the continuous development of the capital market, specialized sub-committees were established to cover key activities such as asset management, arranging and advice, brokerage, custody, real estate products, Zakat and tax, debt instruments, human resources, and governance, in addition to the Financial Technology Committee, which is the most recent.

Al Degaither stressed that such committees play an effective role in deepening communication among specialists from financial institutions through providing more insights into the practical challenges they face in supporting legislation.

He also highlighted that the notable development in the Saudi capital market underscores the significance of effective communication among all participants.

According to the latest data available until the end of Q2 2024, the total assets under management (AUMs) reached approximately SAR 935 billion. This growth was accompanied by a diversification in demand for investment products and an increase in the number of trader categories.

The market witnessed a rise in demand for investment banking services, coinciding with a rise in the number and variety of market offerings, the official said. He added that the volume of assets under custody reached around SAR 2.4 trillion, accompanied by growth in advisory and research-related services.

This development is a result of efforts by the Capital Market Authority (CMA), which remains committed to continuous interaction and collaboration with financial market institutions to develop and safeguard the market. This committee has been—and continues to be—one of the manifestations of such efforts, Al Degaither concluded.