SAUDI ARABIA: CMA Approves the Establishment of Simplified Investment Funds

Monday March 9 2026

On 8^th March 2026, the Capital Market Authority (CMA) Board approved enabling the establishment of Simplified Investment Funds through the publication of the Instructions of Simplified Investment Funds.

The approved Instructions aim to establish the regulatory framework for the formation of highly flexible investment funds characterized by lower costs associated with establishment and management, and greater flexibility in fund structuring and in regulating the contractual relationship between the fund manager and investors, thereby contributing to meeting the investment needs of the target client segment for these funds.

The key provisions of the approved Instructions include regulating the offering of units of Simplified Investment Funds to institutional clients, if they are managed by a fund manager licensed by the CMA to conduct Investment Management or Investment Management and Fund Operation activities.

The approved Instructions also remove the requirement to review the offering application within 15 days, which was one of the requirements under the Investment Funds Regulations, provided that the CMA must be notified prior to the proposed date for offering the fund. The Instructions also remove the requirement to appoint a custodian for this type of fund where it takes the form of a Special Purpose Entity.

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