Tuesday August 12 2025
News Source: Global Exchanges
Focus: Listing Rules
Type: General
Country: Saudi Arabia
On 11th August 2025, the Capital Market Authority (CMA) published a consultation on enabling investors in the capital market to invest in financing investment funds, which were previously offered through private placements, under the regulatory framework for financing investment funds.
The proposed draft aims to develop the regulatory framework for financing investment funds and introduce new products in the Saudi capital market by allowing investment funds that are established to engage in direct and indirect financing activities to be publicly offered. This would contribute to providing an additional financing channel that supports economic growth and meets its financing needs, enables the growth of the asset management industry, increases total managed assets, and diversifies the investment products available to public investors in the Saudi capital market.
The main elements of the proposed draft include allowing additional structures for financing investment funds by permitting their public offering and listing on both the Main Market and the Parallel Market, as they are currently limited to private placements. The proposal also includes the development of regulatory requirements for financing investment funds.
The proposed amendments also include several newly introduced requirements related to the risk management of public financing funds, including a restriction that prohibits a public financing fund from having exposure to a single beneficiary or multiple beneficiaries belonging to the same group amounting to 25% or more of the fund’s total size.
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