ICMA and ISLA release netting opinion for Saudi Arabia
02 October 2025 Saudi Arabia
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The International Capital Market Association (ICMA) and the International Securities Lending Association (ISLA) have published a new legal opinion for the Kingdom of Saudi Arabia (KSA).
The move is an important milestone towards strengthening the stability and sustainability of the financial sector in KSA, bringing the Kingdom's financial infrastructure in line with international standards.
Written by Riyadh-based firm STAT Law, the netting opinion covers the Global Master Securities Lending Agreement (GMSLA 2000 and 2010), says ISLA.
It will also provide market participants and their compliance teams the assurance that securities lending transactions documented under the GMSLA will be enforceable under the laws of the KSA.
Andrew Dyson, ISLA CEO, comments: "The provision of close-out netting paves the way for the securities financing market to support the development of a deep, liquid and efficient capital market, which is vital to Saudi Arabia鈥檚 2030 Economic Vision growth and diversification ambitions鈥�.
The publication of this netting opinion forms part of ISLA鈥檚 broader Middle East strategy, which also includes the publication of securities lending guides for a number of jurisdictions in the region.
On the other hand, ICMA鈥檚 legal opinion covers the Global Master Repurchase Agreement (GMRA) for Saudi Arabia, which recognises the enforceability of close-out netting under regulations published by the Saudi Central Bank (SAMA) and Capital Markets Authority (CMA) earlier this year.
The ICMA GMRA 2025 opinions now include the netting coverage of 74 jurisdictions and covers, at a minimum, companies, banks, and securities dealers, with most jurisdictions also covering insurance companies, hedge funds, and pension funds.
The move is an important milestone towards strengthening the stability and sustainability of the financial sector in KSA, bringing the Kingdom's financial infrastructure in line with international standards.
Written by Riyadh-based firm STAT Law, the netting opinion covers the Global Master Securities Lending Agreement (GMSLA 2000 and 2010), says ISLA.
It will also provide market participants and their compliance teams the assurance that securities lending transactions documented under the GMSLA will be enforceable under the laws of the KSA.
Andrew Dyson, ISLA CEO, comments: "The provision of close-out netting paves the way for the securities financing market to support the development of a deep, liquid and efficient capital market, which is vital to Saudi Arabia鈥檚 2030 Economic Vision growth and diversification ambitions鈥�.
The publication of this netting opinion forms part of ISLA鈥檚 broader Middle East strategy, which also includes the publication of securities lending guides for a number of jurisdictions in the region.
On the other hand, ICMA鈥檚 legal opinion covers the Global Master Repurchase Agreement (GMRA) for Saudi Arabia, which recognises the enforceability of close-out netting under regulations published by the Saudi Central Bank (SAMA) and Capital Markets Authority (CMA) earlier this year.
The ICMA GMRA 2025 opinions now include the netting coverage of 74 jurisdictions and covers, at a minimum, companies, banks, and securities dealers, with most jurisdictions also covering insurance companies, hedge funds, and pension funds.
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