Wednesday October 8 2025
News Source: Global Exchanges
Focus: General - Global Exchanges
Type: General
Country: Saudi Arabia
On 7th October 2025, the Capital Market Authority (CMA) published a consultation on Enabling the Establishment of Simplified Investment Funds for Specific Categories of Investors.
The Draft aims to establish a regulatory framework for the creation of investment funds with high flexibility, characterized by lower costs related to establishment and management, greater flexibility in structuring the fund and regulating the contractual relationship between the fund manager and investors, in a way that contributes to meeting the investment needs of the client categories targeted by these funds.
The main elements of the proposed draft include limiting the offering of these funds to categories of clients eligible to invest in such funds in accordance with the provisions of these instructions, in addition to waiving the requirement to appoint a custodian for this type of fund in cases where it is established as a special purpose entity.
The proposed draft also stipulates that the offering of fund units may be made to non-resident foreign investors, the Government of Saudi Arabia, government entities, and any public legal entity in accordance with the applicable regulatory provisions, by a fund manager holding the Offshore Securities Business License.
According to the draft, it is proposed to grant the fund manager greater flexibility regarding the timeframe for notifying the CMA of the establishment of the fund, provided that the CMA is notified prior to the proposed launch date of the fund.
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