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100+ Free Saudi CME-1B Practice Questions

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Key Facts: Saudi CME-1B Exam

50 questions

CME-1B is a computer-based test of 50 multiple-choice questions

Financial Academy - CME-1B exam details

60 minutes

Time limit for the CME-1B examination

Financial Academy - CME-1B exam details

70%

Pass mark - at least 35 of 50 questions correct

Financial Academy - CME-1B exam details

SAR 1,100

CME-1B examination fee through the Financial Academy

Financial Academy - CME-1B exam details

8 modules

Syllabus modules, with Regulated Activities the largest at 26%

Financial Academy - CME-1B syllabus

2003

The Capital Market Law (Royal Decree M/30) established the CMA

Capital Market Law, Royal Decree M/30 of 2003

5 activities

Regulated activities: Dealing, Arranging, Managing, Advising and Custody

CMA Securities Business Regulations

100

Free original practice questions here

OpenExamPrep

The General Saudi Capital Market Rules and Regulations (CME-1B / GSCMR) is the General Chapter of the CMA's Capital Market Examination, delivered in cooperation with CISI. It is a computer-based test of 50 multiple-choice questions in 60 minutes, with a 70% pass mark (35 of 50 correct), and the official fee through the Financial Academy is SAR 1,100. The syllabus has 8 modules, with Regulated Activities (26%) and the Introduction to the CMA and Prohibitions (14% each) carrying the most weight. It covers the Capital Market Law of 2003, the CMA, Tadawul, the five regulated activities, AML/CTF, market conduct prohibitions and systems and controls. This 100-question bank provides original practice modelled on the official syllabus modules.

Sample Saudi CME-1B Practice Questions

Try these sample questions to test your Saudi CME-1B exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Which body is the principal regulator of the capital market in the Kingdom of Saudi Arabia?
A.The Saudi Central Bank (SAMA)
B.The Capital Market Authority (CMA)
C.The Ministry of Commerce
D.The Saudi Exchange (Tadawul)
Explanation: The Capital Market Authority (CMA) is the government authority responsible for regulating and developing the Saudi capital market. It was established under the Capital Market Law and oversees issuers, exchanges and authorised persons.
2Under which legal instrument was the Capital Market Authority established in Saudi Arabia?
A.The Companies Law
B.The Banking Control Law
C.The Capital Market Law (Royal Decree M/30 of 2003)
D.The Anti-Money Laundering Law
Explanation: The Capital Market Authority was established by the Capital Market Law, issued under Royal Decree No. M/30 dated 2003. This law sets out the CMA's objectives, powers and the framework for regulating the Saudi capital market.
3What is the primary purpose of the Capital Market Authority's regulatory activity?
A.To maximise government tax revenue from trading
B.To protect investors and ensure fairness, efficiency and transparency in the market
C.To guarantee profits to all listed companies
D.To set interest rates for the banking sector
Explanation: A core objective of the CMA is to protect investors and the public from unfair and unsound practices, and to promote fairness, efficiency and transparency in securities transactions. This investor-protection mandate underpins its rules.
4Which entity is the only authorised securities exchange in the Kingdom of Saudi Arabia?
A.Muqassa
B.The Saudi Exchange (Tadawul)
C.Edaa
D.The CMA
Explanation: The Saudi Exchange (Tadawul) is the sole entity authorised to operate a securities exchange in the Kingdom. It was established as a joint-stock company under the Capital Market Law.
5Within the Saudi Tadawul Group, which company is responsible for the depository and registration of securities?
A.Muqassa
B.Wamid
C.Edaa (the Securities Depository Center Company)
D.Tadawul
Explanation: Edaa, the Securities Depository Center Company, is responsible for the deposit, registration, transfer and safekeeping of securities ownership records. It is part of the Saudi Tadawul Group.
6Within the Saudi Tadawul Group, which company acts as the central counterparty that clears trades?
A.Edaa
B.Muqassa (the Securities Clearing Center Company)
C.Wamid
D.The CMA
Explanation: Muqassa, the Securities Clearing Center Company, provides clearing services and acts as the central counterparty, reducing counterparty risk by settling transactions between buyers and sellers.
7The Saudi Exchange was established under the Capital Market Law as which type of legal entity?
A.A government department
B.A joint-stock company
C.A charitable foundation
D.A sole proprietorship
Explanation: The Capital Market Law required the exchange to be established as a joint-stock company. This corporate form supports its commercial operation as the Kingdom's securities exchange.
8To which authority does the Capital Market Authority report, reflecting its independent status?
A.The Saudi Central Bank
B.It reports directly at the level of the Prime Minister / Council of Ministers
C.The Ministry of Finance only
D.The Saudi Exchange
Explanation: The CMA is a government authority with financial and administrative independence that reports directly at the highest executive level (the Prime Minister). This independence helps it regulate the market impartially.
9Which of the following best describes a function of the Capital Market Authority?
A.Issuing rules and regulations to implement the Capital Market Law
B.Setting the national budget
C.Operating retail bank branches
D.Printing the national currency
Explanation: A key CMA function is to issue the rules and regulations needed to implement the Capital Market Law, such as the Securities Business Regulations and the Market Conduct Regulations. It also supervises and develops the market.
10Wamid, a company within the Saudi Tadawul Group, specialises mainly in which area?
A.Clearing of derivatives
B.Custody of client cash
C.Technology and innovation solutions
D.Setting listing fees
Explanation: Wamid is the Saudi Tadawul Group's innovation arm, providing technology-based solutions and new services. It complements the exchange, clearing and depository companies in the group.

About the Saudi CME-1B Exam

The General Saudi Capital Market Rules and Regulations (CME-1B), also known as GSCMR, is the General Chapter of the Saudi Capital Market Examination (CME) qualification mandated by the Capital Market Authority (CMA) and delivered in cooperation with the Chartered Institute for Securities and Investment (CISI). It gives an overview of the Saudi capital market and the CMA regulatory framework, covering the Capital Market Law (Royal Decree M/30 of 2003), the establishment and powers of the CMA, the Saudi Exchange (Tadawul) and the Tadawul Group, the Securities Business Regulations and the five regulated activities (Dealing, Arranging, Managing, Advising and Custody), the Capital Market Institutions' Regulations, anti-money laundering and counter-terrorist financing rules, market conduct prohibitions such as insider trading and market manipulation, and the systems and controls expected of authorised persons. It is a mandatory regulatory requirement for most individuals registering with the CMA to perform registrable functions.

Assessment

50 multiple-choice questions across 8 syllabus modules: Introduction to the CMA, Securities Business Regulations, Authorisation, Regulated Activities, AML/CTF, Prohibitions, Capital Market Institutions' Regulations, and Systems and Controls.

Time Limit

1 hour (60 minutes).

Passing Score

70% - candidates must answer at least 35 of 50 questions correctly to pass.

Exam Fee

SAR 1,100 through the Financial Academy. (Capital Market Authority (CMA), delivered by the Financial Academy in cooperation with CISI.)

Saudi CME-1B Exam Content Outline

14%

Introduction to the Capital Market Authority

Covers the Capital Market Law (Royal Decree M/30 of 2003), the establishment, objectives and powers of the CMA, the structure of the Saudi capital market, the Saudi Exchange (Tadawul) as the sole securities exchange, and the Tadawul Group entities including the clearing centre (Muqassa) and the Securities Depository Center (Edaa).

12%

Securities Business Regulations

Covers the definition and scope of securities business, the meaning of a security, the activities that fall within the regulatory perimeter, and the exclusions and exemptions that apply under the Securities Business Regulations.

4%

Authorisation

Covers the requirement to obtain CMA authorisation before carrying out securities business, the conditions and process for authorisation, registered persons, and the prohibition on conducting regulated activities without a licence.

26%

Regulated Activities

The largest module. Covers the five regulated activities under the Securities Business Regulations - Dealing, Arranging, Managing, Advising and Custody - including how each is defined, the boundaries between them and the regulatory requirements that apply to firms carrying them out.

10%

Anti-Money Laundering and Counter-Terrorist Financing

Covers AML/CTF obligations including customer due diligence and know-your-customer requirements, the risk-based approach, suspicious transaction reporting, record keeping, and the role of the relevant Saudi authorities.

14%

Prohibitions

Covers the Market Conduct Regulations and prohibited conduct, including insider trading, market manipulation, untrue or misleading statements, and the dissemination of false information that could affect securities prices.

12%

Capital Market Institutions' Regulations

Covers the conduct of business obligations of capital market institutions (authorised persons), client classification, dealing fairly with clients, managing conflicts of interest, and the protection of client money and client assets.

8%

Systems and Controls

Covers governance and organisational arrangements, the compliance function, internal systems and controls, risk management, business continuity, record keeping and reporting obligations for authorised persons.

How to Pass the Saudi CME-1B Exam

What You Need to Know

  • Passing score: 70% - candidates must answer at least 35 of 50 questions correctly to pass.
  • Assessment: 50 multiple-choice questions across 8 syllabus modules: Introduction to the CMA, Securities Business Regulations, Authorisation, Regulated Activities, AML/CTF, Prohibitions, Capital Market Institutions' Regulations, and Systems and Controls.
  • Time limit: 1 hour (60 minutes).
  • Exam fee: SAR 1,100 through the Financial Academy.

Keys to Passing

  • Complete 500+ practice questions
  • Score 80%+ consistently before scheduling
  • Focus on highest-weighted sections
  • Use our AI tutor for tough concepts

Saudi CME-1B Study Tips from Top Performers

1Anchor your study in the actual CMA rulebooks - the Capital Market Law, Securities Business Regulations, Capital Market Institutions' Regulations and Market Conduct Regulations - because exam questions test specific rule requirements.
2Give the most time to Regulated Activities (26%); be able to define and distinguish Dealing, Arranging, Managing, Advising and Custody, since boundary questions are common.
3Memorise the structure of the Saudi capital market: the CMA as regulator, the Saudi Exchange (Tadawul) as the only exchange, and the Tadawul Group entities including Muqassa (clearing) and Edaa (depository).
4For AML/CTF, focus on customer due diligence, KYC, suspicious transaction reporting and record-keeping periods rather than general background.
5For Prohibitions, learn the difference between insider trading and market manipulation, and be able to recognise examples of untrue statements and misleading information.
6Practise timing - 50 questions in 60 minutes leaves a little over a minute per question, so flag harder items and return to them rather than stalling.

Frequently Asked Questions

How many questions are on the CME-1B exam and how long is it?

The CME-1B (General Saudi Capital Market Rules and Regulations) is a computer-based test of 50 multiple-choice questions with a time limit of 1 hour (60 minutes).

What is the pass mark for CME-1B?

The pass mark is 70%, which means you must answer at least 35 of the 50 questions correctly to pass the exam.

Who administers the CME-1B exam?

CME-1B is mandated by the Capital Market Authority (CMA) of Saudi Arabia and delivered by the Financial Academy in cooperation with the Chartered Institute for Securities and Investment (CISI). It is available in both Arabic and English.

What does the CME-1B syllabus cover?

It covers 8 modules: an introduction to the CMA, Securities Business Regulations, Authorisation, the five Regulated Activities, AML/CTF, Prohibitions, Capital Market Institutions' Regulations, and Systems and Controls.

What are the five regulated activities in the Saudi capital market?

Under the Securities Business Regulations the five regulated activities are Dealing, Arranging, Managing, Advising and Custody. A person must be authorised by the CMA to carry out any of them.

How much does the CME-1B exam cost?

The examination fee through the Financial Academy is SAR 1,100. Booking and registration are completed through the Financial Academy and approved test centres.