CMA compensates over 20,000 investors affected by Al Kathiri, Anaam violations

30/06/2026 03:21 AST

The Capital Market Authority (CMA) announced on Monday that compensation has been deposited for more than 20,000 investors affected by violations committed in the shares of Al Kathiri Holding Co. and Anaam International Holding Group.

The violations were committed by several individuals against whom a final decision was issued by the Appeal Committee for Resolution of Securities Disputes (ACRSD). The decision, published on Dec. 14, 2023, obligated the violators to pay SR292.8 million in illegal gains resulting from the violations, following a penal lawsuit filed by the Public Prosecution and referred by the CMA.

The compensation amounts were deposited into the accounts of affected investors through a dedicated Compensation Fund established by a resolution of the CMA Board, in accordance with a distribution plan approved by the Committee for Resolution of Securities Disputes (CRSD).

The CMA said the mechanism was designed to facilitate the compensation process and ensure that entitlements are delivered to eligible investors promptly and with minimal burden on them.

The approved distribution plan took into account the scale of the violations, the value of the illegal gains realized, and the extent of damage suffered by investors who traded the shares of both companies during the violation period. In some cases, compensation amounts exceeded SR6 million.

Under Article 59 of the Capital Market Law, the CMA has the authority to regulate procedures for compensating persons affected by violations and to assess the suitability of establishing dedicated compensation funds financed from recovered illegal gains.

The authority said the establishment of the fund reflects its efforts to strengthen investor protection, improve compensation mechanisms, and enhance confidence in the Saudi capital market.

The CMA added that it has reviewed international best practices in capital markets and adopted measures suited to the Saudi market to improve the efficiency of compensation mechanisms and safeguard investor rights.

This is the fourth compensation fund established to compensate investors affected by capital market violations within less than 12 months, following the first fund announced in July 2025.

The CMA said compensation funds complement existing mechanisms aimed at facilitating compensation for investors affected by market violations. It noted that such funds are established when the facts of a case show that actual harm occurred and when the authority determines that a fund would be more effective and practical than other available compensation methods.

Saudi Gazette