Saudi Arabia’s Capital Markets Authority (CMA) has opened a 30-day public consultation on draft instructions that would introduce “simplified investment funds”, a new fund type intended to be cheaper to establish and run and more flexible in structuring and in the contractual relationship between fund managers and investors. The consultation closes on 6 November 2025. The draft is designed around flexibility features similar to the limited partnership (LP/GP) model used in alternative investment funds, drawing on global practices. Key proposals include restricting offerings to client categories eligible under the draft, waiving the requirement to appoint a custodian where the fund is established as a special purpose entity, and permitting offerings to non-resident foreign investors, the Government of Saudi Arabia, government entities and other public legal entities in line with applicable regulatory provisions when conducted by a fund manager holding the Offshore Securities Business License. The CMA would also allow more flexibility in the timing for notifying it of a fund’s establishment, provided notification occurs before the proposed launch date, and would give greater scope to set fund terms on matters such as termination and liquidation, unit class features, unitholder reporting, amendments to terms and conditions, and unitholder meetings. The CMA said it will take consultation feedback into account before finalising and approving the proposed amendments.

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