Friday July 11 2025

News Source: Global Exchanges

Focus: General - Global Exchanges

Type: General

Country: Saudi Arabia

Link: https://tinyurl.com/2u5ncchw




On 9th July 2025, the Capital Market Authority (CMA) Board has approved a set of enhancements aimed at developing the regulatory environment for investment funds in the Kingdom. This includes amendments to the Investment Funds Regulations, and the Glossary of Defined Terms Used in the Regulations and Rules of the Capital Market Authority.

The amendments approved by the CMA Board aim to develop the regulatory framework for investment funds to enhance the asset management industry and strengthen its competitiveness by identifying areas for improvement and adopting global practices. The amendments also include the development of additional regulatory provisions that support the growth of the investment fund, enhance transparency and disclosure for fund unit holders, and establish governance standards that ensure greater protection of investors’ rights.

Among the amendments approved by the CMA Board to allow public funds to subscribe to debt instruments offered privately if issued by issuers within the Kingdom. This aims to support the growth of the asset management industry, as it will enable public fund managers to subscribe to offerings from a broader range of debt instrument issuers, following the removal of previously imposed restrictions under the Investment Funds Regulations.

The amendments also require money market fund managers and capital protection funds not to invest more than 10% of the fund’s net asset value in debt instruments issued by a single issuer, and that the total investments of the fund in a single entity do not exceed 25% of the fund’s net asset value. These measures aim to limit risk and enhance portfolio diversification.

The amendments also included allowing capital market institutions licensed to conduct management investment activities to distribute foreign funds and offer their securities in the Kingdom, subject to specific requirements. This will enable clients in the Kingdom to invest in foreign funds.

The amended Investment Funds Regulations, and the Glossary of Defined Terms Used in the Regulations and Rules of the Capital Market Authority can be accessed through the following links:

Click on the above link for further information