Saudi Arabia's Capital Market Authority (CMA) opened a public consultation on proposed amendments to the Investment Funds Regulations, Real Estate Investment Funds Regulations and the related glossary, aiming to update the regulatory framework for investment funds in the Kingdom. The project is positioned against continued growth in the sector, with CMA-supervised entities’ total managed assets reported to have exceeded SAR 1 trillion by end-2024. The draft proposes changes to improve fund management and investor protections, including enabling distribution of fund units through investment fund distribution platforms and through companies licensed by the Saudi Central Bank to provide e-wallet services. It also strengthens provisions on terminating investment funds and dismissing fund managers, and sets a framework for the voluntary withdrawal of public and private fund managers requiring CMA approval and a transfer of management to a successor within 60 days of approval. For real estate investment funds listed on the Parallel Market (Nomu), the amendments would allow investment in real estate development projects upon establishment without being bound by certain investment policy percentages and asset restrictions in the Real Estate Investment Funds Regulations. In addition, capital market institutions licensed to conduct investment management activities would be permitted, subject to specified requirements, to distribute foreign funds and offer their securities in the Kingdom. Feedback is open for 30 calendar days, closing on 07/03/2025, and the CMA indicated comments will be considered before finalising the amendments.

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