Saudi Arabia’s Capital Markets Authority (CMA) has launched a public consultation on a draft regulatory framework that would allow financing investment funds, previously limited to private placements, to be publicly offered to capital market investors. The proposals are intended to broaden permitted fund structures and introduce additional products by enabling funds engaged in direct and indirect financing activities to access the public market. Key elements include permitting the public offering and listing of financing investment funds on both the Main Market and the Parallel Market, alongside updated regulatory requirements for these funds. The draft would consolidate provisions governing financing investment funds into a single regulatory document and introduces new risk management requirements for public financing funds, including a restriction preventing exposure to a single beneficiary, or multiple beneficiaries in the same group, of 25% or more of the fund’s total size. It also defines permitted investment areas as financing activities, money market transactions, bank deposits, and money market funds, and sets out that indirect financing in the Kingdom would be conducted via purchasing financing portfolios from entities supervised by the Saudi Central Bank, partnering with Saudi Central Bank-licensed financing companies for joint financing, or investing with such companies where the credit granting decision is made by the financing company. The consultation runs for 30 calendar days and closes on 18/03/1447H (10 September 2025), after which the CMA will consider feedback before approving final amendments.
Saudi Arabia Capital Markets Authority 2025-08-11
Saudi Arabia Capital Markets Authority consults on enabling public offerings and listings of financing investment funds
Saudi Arabia's Capital Markets Authority is consulting on a draft framework to publicly offer financing investment funds, expanding beyond private placements. The proposals aim to broaden fund structures and introduce new products by enabling public market access for funds engaged in direct and indirect financing. Key elements include public offering and listing on the Main and Parallel Markets, consolidated regulatory provisions, new risk management requirements, and defined investment areas, with indirect financing conducted through entities supervised by the Saudi Central Bank.