The Capital Market Authority ("CMA") has announced that it will cancel its share in Sukuk and bonds trading commission starting from May 2023. This move is part of the CMA's efforts to reduce costs for market participants in a way that enhances liquidity, increases competitiveness in the local market, and expands domestic investors' base in government debt issues. The decision will contribute to achieving the strategic objectives of Vision 2030, which aims to develop a diversified and effective financial sector to support the development of the economy and create an advanced capital market. With the cancellation decision, the CMA affirms its commitment to stimulating activities in the debt instruments secondary market, considering such commitments as long-term without exceptions. This move aligns with the CMA's strategic objective of developing the Sukuk and debt instruments market to boost its attractiveness to issuers and investors. The CMA hopes that this resolution will encourage issuers to list local currency-denominated Sukuk and bonds in the Saudi debt instruments market and investors to trade such instruments. This step will help deepen the market and raise its liquidity while diversifying finance choices for public and private sectors by creating new asset classes available for all investors' segments. The CMA's decision aligns with exemptions and changes in fees for debt instrument trades made over the last 14 years. The Sukuk and debt instruments market has witnessed significant developments in recent years, including the increase of the face value of government Sukuk from one million Saudi Riyals to SAR 1000 to boost trading rates in the market. Additionally, Clearstream has been linked with Securities Depository Center Company ("Edaa") internationally, and debt instruments trades have been made available for all foreign investors.
