Saudi Arabia Capital Markets Authority (CMA) Board approved amendments to the Investment Funds Regulations, the Real Estate Investment Funds Regulations and the CMA Glossary, updating the framework for fund distribution, fund manager changes, eligible investments and investor disclosure and protection. The changes expand the categories allowed to distribute fund units to include investment fund distribution platforms and electronic money institutions licensed by the Saudi Central Bank via websites or mobile apps. They also introduce revised provisions for fund termination, dismissal of fund managers and the voluntary withdrawal of managers for public and private funds, including a requirement for CMA approval and an obligation for the outgoing manager to transfer responsibilities to a successor within 60 days of receiving that approval. For Real Estate Investment Traded Funds listed on the Parallel Market (Nomu), the amendments allow investment at establishment in real estate development projects without being bound by the investment ratios and asset restrictions in the Real Estate Investment Funds Regulations. For fixed income exposures, public funds may now subscribe to debt instruments offered privately if issued by issuers within the Kingdom, removing prior restrictions under the Investment Funds Regulations. Money market fund managers and capital protection funds must cap exposure to debt instruments from a single issuer at 10% of net asset value and cap total investments in a single entity at 25% of net asset value, while managers of public funds investing in debt instruments must disclose the credit ratings of the fund’s top ten debt holdings in quarterly reports. Retail protection measures cap retail cash subscriptions in private and foreign fund offerings at 50% of total cash subscriptions at the time of offering, with additional transfer-based limits for closed-ended private and foreign funds to prevent retail holdings exceeding 50% of total unit or security value through cash contributions. The package follows three public consultation rounds launched in June 2024, October 2024 and February 2025.
Saudi Arabia Capital Markets Authority 2025-07-09
Saudi Arabia Capital Markets Authority approves amendments to investment fund and REIT rules expanding distribution channels and tightening retail and debt investment safeguards
The Saudi Arabia Capital Markets Authority (CMA) has approved amendments to the Investment Funds Regulations, Real Estate Investment Funds Regulations, and CMA Glossary. Key changes include expanded distribution channels, revised fund termination and manager dismissal provisions, and new investment allowances for Real Estate Investment Traded Funds on the Parallel Market. The amendments also introduce caps on fixed income exposures and retail cash subscriptions, following three public consultation rounds.