STAT proudly announces the publication of the Close-out Netting and related Collateral Arrangements Regulation, a landmark development for Saudi Arabia’s financial markets, publicly highlighted at the Capital Markets Forum 2025 in Riyadh.

STAT played a key role in assisting the Saudi Central Bank – SAMA with drafting this regulation, leveraging its expertise in financial regulation and market infrastructure. The regulation enhances legal certainty, mitigates counterparty risk, and fosters market confidence in derivatives, repo, and securities lending transactions. By aligning with international standards, it strengthens Saudi Arabia’s financial ecosystem and supports Vision 2030 by promoting a modern, resilient, and globally integrated capital market.

This initiative was led by Partners Zeyad Y. AlSalloum and Faris Al Amoudi, with oversight from Senior Counsel Richard Blackburn and Associate Reem Alomran, alongside the STAT financial regulatory team.

Zeyad Y. AlSalloum, Partner at STAT, commented on the significance of the regulation: “This regulation is a defining step in Saudi Arabia’s financial sector. By providing a legal framework for close-out netting and collateral arrangements, it strengthens core concepts of key financial transactions and increases market efficiency. This clarity will enhance confidence among participants and attract international investment, reinforcing Saudi Arabia’s role as a global financial hub. STAT is proud to have shaped this framework, which will support growth for years to come.”

At the Capital Markets Forum, the regulation was a focal point of the panel discussion “The Developing Legal & Regulatory Landscape,” where Faris Al Amoudi, Partner at STAT, joined leaders to discuss its impact on banks, asset managers, and global investors. He emphasised: “The Close-out Netting and Related Collateral Arrangements Regulation represents a foundational step for Saudi Arabia’s financial markets. By providing participants with greater legal certainty and risk management tools, these reforms enable growth and increased international participation. STAT is proud to have contributed to this critical initiative, which paves the way for a more advanced and competitive financial sector.”

Through assisting Saudi Central Bank – SAMA with key initiatives like the Netting Regulation and the Master Agreement for the Sale and Purchase of Securities, STAT drives resilience, innovation, and alignment with global standards, reinforcing Saudi Arabia’s position as a leading financial hub.