US/SAUDI REGULATORY TRAINING: SAUDI'S CAPITAL

UNCLAS SECTION 01 OF 02 RIYADH 006813

SIPDIS

SIPDIS

DEPARTMENT PASS TO SECURITIES AND EXCHANGE COMMISION FOR
ETHIOPIS TAFARA.

E.O. 12958: N/A
TAGS: ECON EFIN ECIN PREL CVIS SA
SUBJECT: US/SAUDI REGULATORY TRAINING: SAUDI'S CAPITAL
MARKET AUTHORITY WANTS U.S. MBA'S FOR ITS STAFF

REF: STATE 06515


1. (SBU) Summary: The Saudi equivalent of our U.S.
Securities and Exchange Commission (SEC),the Capital Market
Authority (CMA),is in its third year of existence, and
focused on educating its young, technocratic Saudi workforce.
The CMA's main goal for 2007 is to utilize U.S. schools and
institutions to train their employees on U.S. financial and
market regulation. The CMA/SEC relationship is a key part of
the Embassy's regulatory training initiative. End Summary.


2. (U) EconCounselor and EconOff met with Dr. Abdulrahman
Al-Kalaf, one of four Commissioners of the CMA; Mazin Romaih,
Head of Corporate Finance and in charge of training programs
within Saudi Arabia; Khalid Al-Hamoud, Manager of Mutual
Funds; and Turki Almalik, Head of Authorization & Inspection
and in charge with training programs outside of Saudi Arabia.


3. (SBU) The CMA has been interested in a pre-MBA program
that would provide a four to six-month intense training
program touching on a range of financial and regulatory
matters. The CMA was in negotiation with the National
Association of Security Dealers (NASD),Rice University and
The University of California at Berkeley. These universities
and institution provided the CMA with proposals for the
pre-MBA training program. According to Dr. Abdulrahman
Al-Kalaf, the Commissioner of the CMA, the CMA was unable to
finalize the negotiations with the U.S. universities and
institutions in a timely manner. Due to this delay, the CMA
arranged with two British universities for the pre-MBA
program to begin in September 2006. The first batch of CMA
employees to attend the pre-MBA program is approximately
twenty-seven Saudi nationals.


4. (SBU) Dr. Al-Kalaf explained a rigorous selection and
training program for the students to attend the pre-MBA
program. The CMA selects candidates based on grade point
average, personality, ability to perform well within the
constraints of the CMA's mission and policy, and social
skills. After a candidate is selected they are put through
an intense six month training program in Saudi Arabia to
teach English, computer skills and other soft skills. After
successful completion of the in-house training program, the
candidates are eligible for the four to six-month pre-MBA
program to be sponsored in the U.S. or Europe. The students
then return to the CMA to work for a few years. If the
student is successful at the CMA they then will be eligible
for a full-time MBA program at an appropriate financial
institution or university in the U.S. or Europe. The CMA
bears all costs of this training program/recruitment
campaign. As Dr. Al-Kalaf stated, "it is important for us to
reinvest in our own people and to bring education and
knowledge to Saudi Arabia." (Comment: The CMA program can
be equated with U.S. bank, Bank One's (know merged with J.P.
Morgan and Chase) First Scholar Program in which college
graduates with backgrounds in finance, economics and
investment banking attended part-time MBA programs paid for
by the bank while simultaneously working in various
departments in the bank. End Comment)


5. (SBU) Dr. Al-Kalaf, who was educated in the U.S.,
stressed the importance of Saudi and U.S. relations and
specifically pointing to his personal desire for the CMA to
utilize U.S. universities and institutions in such training
programs. He said, "the CMA hopes to re-engage the U.S.
universities and institutions that previously offered
proposals and hopes that will extend a similar offer for
pre-MBA program in 2007." If the pilot group attending the
British institutions is successful, CMA plans to send another
round of students to a U.S. university or institution in the
summer or fall of 2007.


6. (SBU) Currently the CMA has an internship program with
the NASD in which four CMA employees work at the NASD for two
months. The CMA sends four employees to work at the NASD
every quarter. This program has been very successful and CMA
employees will continue to be apart of this internship
program for as long as possible. The CMA has benefited from
this exchange and the next group of four persons is scheduled
to begin in October 2006.


7. (SBU) Dr. Al-Kalaf will be attending the upcoming
Economic Working Group in Washington D.C., September 14-15,

2006. Dr. Al-Kalaf has requested a meeting on September 12
or 13, 2006 with the Chairman Christopher Cox of the SEC. On
September 13, 2006 Dr. Al-Kalaf is scheduled to meet with one
of the SEC's Commissioners, Kathleen Casey, and with

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high-ranking government officials from the Division of
Corporate Finance, Office of Information Technology, Office
of International Affairs and Office of Investor Education and
Assistance. (Comment: Post believes this will be very
beneficial in establishing good long lasting relationships
with the CMA and will allow the SEC to assist in shaping
Saudi regulations.)


8. (SBU) The SEC's Office of International Relations has
been invited by the CMA to conduct a three-day seminar on
various financial and regulatory topics. The proposed visit
is scheduled for September 9-15, 2006 and will take place at
the CMA building in Riyadh.
OBERWETTER