Saudi Arabia’s central bank eyes bigger role

Saudi Arabia’s central bank will play a bigger role in the supervision of the country’s financial sector as the kingdom weighs opening up its stock market to direct investments by foreigners.

The country’s Capital Market Authority (CMA) said on Sunday that it had signed a cooperation agreement with the central bank or Saudi Arabian Monetary Agency (SAMA) to coordinate supervision of the financial sector in order to improve its stability.

As per the agreement, the two entities will coordinate in the supervision of corporate governance, risk management measures, initial public offerings (IPOs), sukuk issuance and merger and acquisition regulations as well as the exchange of information.

Currently companies need only CMA approval for mergers and capital increases.

From: Arabian Business