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undated). CMA Market Conduct Regulations 2004 also prohibits providing untrue statements
However, these transparency and disclosure do not specify anything specific for Islamic
financial institutions.
Rating Agencies
The Credit Rating Agencies Regulations Issued by the Board of the Capital Market Authority
Pursuant to its Resolution Number 3-58-2014 Dated 17/1/1436H (CMA 2014). These
regulations outlines the conducts, activates and supervisions. A number of ratings agencies
have applied for licenses and one of them is the Islamic International Rating Agency.
4.8.6. Consumer Protection Architecture
Consumer Protection and Financial Literacy
SAMA has issued different consumer regulation principles for different industries. These
include Finance Consumer Protection Principles, Regulations for Issuance and Operations of
Credit and Charge Cards, Insurance Consumer Protection Principles and Banking Consumer
Protection Principles.30 Similarly, CMA has issued Market Conduct Regulations 2004 that
prohibits manipulative and deceptive acts and practices and provides guidelines for dealing
with clients.
Different programs on improving financial literacy have been established by financial
supervisors. The SAMA established the Institute of Finance in 1964 that provides training to
mainly banking professionals. The Capital Market Authority launched an interactive website
called Smart Investor Program designed to raise awareness among young and potential future
investors. However, there are no specific literacy programs on Islamic banking and financial
products.
Deposit Insurance
Saudi Arabia does not have an explicit Deposit Insurance Scheme. However, a statement from
the Supreme Economic Council in 2008 stipulates that authorities must ensure the safety of
local banks and bank deposits which is implicitly considered to mean the full coverage of
deposits (FSB 2015). SAMA has introduced an explicit Deposit insurance scheme starting
January 2016 and further work is needed to enhance the financial safety net. Under the
scheme, deposits of Islamic banks and conventional banks will be treated the same (FSB 2015:
56).
4.8.7. Human Capital & Knowledge Development Framework
It has been noticed that human capital and skills are needed to speed up development of the
Saudi insurance industry. SAMA took the lead by establishing the Institute of Banking Training
in 1964 which was renamed the Institute of Finance (IOF) in 2015. The mission of the Institute
is to develop professionals in financial sector, offering programs to cater to financial needs,
awarding certifications, and providing high quality solutions to develop professional
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