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Mazen Al-Sudairi revealed an actionable plan to roll out a series of capital market reforms within 90 days in an interview with Al Arabiya Business that Sabq published October 4, 2026. The chairman, who received a royal decree appointing him on August 13 and began work three days later, said the initiative responds to directives from the King and Crown Prince to promote fairness and efficiency in the market. Al-Sudairi identified falling share prices, uneven IPO quality and waning retail investor interest as core issues the reforms must resolve to restore confidence and position the bourse as a genuine economic barometer and savings venue for citizens.
Most subscription requests in recent offerings fail to reflect genuine investment demand, Al-Sudairi told Al Arabiya Business, adding that high coverage ratios do not automatically signal success. Post-listing share performance serves as a critical benchmark for assessing any IPO, the chairman noted. The Capital Market Authority has investigated certain prior listings yet seeks to act as a source of trust rather than fear, according to Al-Sudairi, who stressed the regulator’s role centers on organization rather than policing.
The authority is redefining responsibilities across all parties in the offering process, including financial advisors, underwriters and issuers, Al-Sudairi explained in the interview. This reallocation of duties forms a central pillar of the 90-day reform timetable designed to tighten standards and improve transparency. The chairman emphasized that the changes aim to rebuild trust in the IPO pipeline after a year marked by subdued activity and several withdrawn listings.
Retail investors’ share in IPOs should generally increase to 30 percent from the typical 10 percent baseline, although larger deals may warrant adjustments, Al-Sudairi stated. The Capital Market Authority’s standing rules allow flexibility in allocations provided the minimum 10 percent retail threshold is met and the regulator grants approval, according to the authority’s published guidelines. Recent offerings have tested higher retail portions, with some reaching 20 percent or more as the market seeks to broaden domestic participation and enhance liquidity.
Saudi Arabia’s IPO market raised only $144 million in the first nine months of 2026, a sharp contraction from prior years, Money and Banking Magazine reported in late September. Reuters reported on September 24 that the authority had proposed stricter book-building requirements obliging underwriters to verify liquidity and commit to purchasing unsubscribed shares before the process begins. Bloomberg noted earlier in February that several banks, including major advisers, had pressed the CMA to reconsider the higher retail guidance amid concerns it could exacerbate weak demand and pressure aftermarket results.
Al-Sudairi, who previously led equity research at Al-Rajhi Financial, brings deep sector knowledge to the role, Sabq reported. The reforms will also address algorithmic trading and short selling while preserving market fairness, particularly as many such trades originate with foreign institutions, the chairman added. Implementation of the 90-day plan began immediately upon his appointment, he said, signaling swift action to align the market with national economic goals.
