Saudi Arabia’s Capital Markets Authority (CMA) has opened a public consultation on a draft regulatory framework that would enable financing investment funds, previously offered only through private placements, to be publicly offered to capital market investors. The draft would allow these funds to be publicly offered and listed on both the Main Market and the Parallel Market and would consolidate the rules governing financing investment funds into a single regulatory document. Proposed new requirements include risk management limits, notably a restriction preventing a public financing fund from having exposure of 25% or more of the fund’s total size to a single beneficiary or to multiple beneficiaries within the same group. The framework also defines permitted investment areas as financing activities, money market transactions, bank deposits and money market funds, and sets out how indirect financing activities in the Kingdom would be carried out through purchasing financing portfolios from entities supervised by the Saudi Central Bank (SAMA), or via agreements, partnerships or investments with SAMA-licensed financing companies where the credit decision is made by those companies. The CMA cited the total value of private financing funds at approximately SAR 2.8 billion by end-2024. The consultation runs for 30 calendar days and closes on 18/03/1447H (10/09/2025), with feedback to be considered in finalising the proposed amendments.

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