The General Secretariat of the Committees for the Resolution of Securities Disputes announced a decisive step reflecting the strength and resilience of the Saudi economy, as the Capital Market Authority implemented compensation procedures for more than 2,500 investors affected by violations in the financial market . These compensations result from violations detected and resolved during the second half of 2025, underscoring the regulatory authorities' commitment to protecting investors' rights and ensuring fair and transparent trading.
The legislative and regulatory environment is evolving to protect investors
Historically, the Saudi Capital Market Authority (CMA) was established to regulate and develop the capital market, ensure transparency, and protect investors from illegal practices. Over the past two decades, the CMA has continuously updated its regulations, particularly the Capital Market Law, to align with international best practices. The litigation process has also evolved significantly, moving from lengthy individual lawsuits to more efficient class-action lawsuit mechanisms. This historical development reflects the goals of Saudi Vision 2030, which aims to create an attractive, transparent, and secure investment environment for both domestic and foreign capital.
Performance indicators and speed of litigation in securities disputes
According to the Judicial Bulletin (Issue 7, 2025) issued by the Committees for the Resolution of Securities Disputes, the average litigation period before the Committees for the Resolution and Appeals in Securities Disputes reached 4.54 months by the end of the second half of 2025, compared to 4.41 months by the end of the second half of 2024. This achievement in speed of resolution was made despite a significant increase in the number of cases filed with the Resolution Committee during this period by 45%, and cases filed with the Appeals Committee by 23%. The number of decisions issued by the committees also increased by 43% in the Resolution Committee and by approximately 15% in the Appeals Committee compared to the previous year.
Class action lawsuits: Al-Khadri and Al-Kathiri Holding cases
In 2025, the Adjudication Committee issued two rulings on two class action lawsuits, both filed against executives of Abdullah Bin Abdulmohsen Al-Khodari & Sons Company. Continuing these regulatory efforts, the Adjudication Committee approved four lawsuits that year. In a related matter, the Adjudication Committee also approved a distribution plan submitted by the Capital Market Authority to compensate investors affected by violations related to shares of Al-Kathiri Holding Company. These compensations were collected directly from the illicit gains resulting from the violations.
The economic dimensions of decisions to compensate those affected in the financial market
The decision to compensate this large number of investors has profound economic implications at the local, regional, and international levels. Locally, this measure strengthens the confidence of individual and institutional investors and demonstrates the regulatory framework's effectiveness in recovering misappropriated funds. Regionally, this approach reinforces the Saudi Stock Exchange's (Tadawul) position as a leader in corporate governance and investor protection in the Middle East. Internationally, the rigorous application of laws and transparent compensation mechanisms are crucial factors in attracting foreign investors. This decision, issued in accordance with Article 59(d) of the Capital Market Law and the internal rules and procedures of the investor compensation funds, sends a clear global message that the Saudi market operates according to the principles of fairness and full compliance.
