What is the Saudi CMA planning?

The CMA is preparing a reform package to be introduced within 90 days, according to chairman Mazen Al-Sudairi as reported by AGBI and Zawya. It responds to a drop in traded stocks and weak performance of newly listed companies.

How large a retail allocation does the chairman want?

Zawya quotes Al-Sudairi saying the retail share in offerings should increase to 30 percent. This is a stated aim from an interview, not a published rule.

Which other areas are under review?

Zawya reports short-selling controls, completion of the securities-lending framework, algorithmic trading oversight (particularly foreign institutions), foreign ownership limits and shareholder-empowerment governance measures are all being considered.

Saudi Capital Markets Authority Readies IPO and Trading

Chairman Mazen Al-Sudairi says a package is due within 90 days to address a "striking" drop in traded stocks and weak post-listing performance. A 30 percent retail share of IPOs is the most specific idea reported.

Saudi Arabia's Capital Markets Authority plans to introduce IPO and trading reforms within 90 days, its chairman Mazen Al-Sudairi has said. According to Zawya, he wants the retail share of offerings raised to 30 percent, and AGBI reports the package responds to a striking drop in traded stocks and weak new-listing performance.

The Gulf Tape Desk October 5, 2026 Updated October 5, 2026 · 3 min read

The CMA says a reform package will be introduced within 90 days, per chairman Mazen Al-Sudairi's remarks reported by AGBI and Zawya.
AGBI reports the stated trigger is a "striking" drop in traded stocks and in the performance of newly listed companies.
Zawya quotes Al-Sudairi saying the retail share in offerings should increase to 30 percent; no final rule has been published.
Zawya reports the CMA's assessment of offers is shifting from subscription coverage to post-listing stock performance.
Short selling, algorithmic trading and foreign ownership limits are also under review, per Zawya, with no adopted rules yet.

Saudi Arabia's market regulator says the listing pipeline needs repair. Chairman Mazen Al-Sudairi has said the Capital Markets Authority is preparing a package of reforms, due within 90 days, according to AGBI's October 2026 report and Zawya's account of his first media interview since appointment. The measures reportedly cover retail participation in IPOs, short selling and algorithmic trading. Details are not final, and this piece reports what has been said, not what has been enacted.

What the regulator says is wrong

The diagnosis centres on how listings behave after they trade, not only on how they are sold. AGBI quotes Al-Sudairi describing a "striking" drop in traded stocks and in the performance of newly listed companies. Zawya lists a high number of declining stocks, quality concerns about certain IPOs and weak retail participation. Neither report supplies exchange figures, so the scale of the decline is not quantified here; Tadawul and CMA data would be the primary measure.

A 30 percent retail share is the headline lever

The most specific proposal is raising retail investors' share of IPO allocations to 30 percent. Zawya quotes Al-Sudairi: "Fundamentally, we believe the retail share in offerings should increase to 30%." A fixed retail floor changes who holds shares on day one, with more individuals and fewer institutions. That can broaden participation, but it also shifts aftermarket risk toward households if offers are priced richly. The final level and rule text have not been published.

Assessment is shifting from subscription to performance

Zawya reports the CMA's assessment criteria are moving from subscription coverage to post-listing stock performance. That changes what counts as a successful offer: an oversubscribed book no longer settles the question if the shares then trade poorly. For issuers and their advisers, the likely consequence is greater pricing discipline, since an offer judged on its aftermarket has less room for aggressive valuations. How the CMA will measure performance has not been detailed in the reporting.

Short selling and algorithmic trading are in scope

Short selling and algorithmic trading are also on the agenda. Zawya reports Al-Sudairi said short selling is beneficial provided it is not used negatively, with new controls under consideration and the securities-lending framework still being completed. Oversight of algorithmic trading, particularly by foreign institutions, and a government review of foreign ownership limits are also mentioned. These are stated areas of work, not adopted rules, and their effect on liquidity cannot be judged before text is published.

What to watch

The test is whether the package improves pricing and liquidity together. Watch for the CMA's published rule text within the 90-day window, the final retail percentage, how performance-based assessment is defined, and how upcoming offers are priced and allocated under any new floor. Until then, the reforms are a stated intention from the chairman, not settled regulation, and this is analysis of a regulatory process, not a view on any security.

What is the Saudi CMA planning?: The CMA is preparing a reform package to be introduced within 90 days, according to chairman Mazen Al-Sudairi as reported by AGBI and Zawya. It responds to a drop in traded stocks and weak performance of newly listed companies.
How large a retail allocation does the chairman want?: Zawya quotes Al-Sudairi saying the retail share in offerings should increase to 30 percent. This is a stated aim from an interview, not a published rule.
Which other areas are under review?: Zawya reports short-selling controls, completion of the securities-lending framework, algorithmic trading oversight (particularly foreign institutions), foreign ownership limits and shareholder-empowerment governance measures are all being considered.