Saudi Arabia’s Capital Market Authority (CMA) has introduced new regulatory changes to boost the investment fund sector, according to the Saudi Gazette. The updates cover investment fund regulations, real estate investment fund rules, and related definitions.
These changes are designed to strengthen the asset management industry, align with global standards, and improve investor protection. Key enhancements include expanding the range of entities allowed to distribute fund units, now permitting licensed electronic money institutions and distribution platforms to operate online and via mobile apps.
The revised rules also clarify procedures for fund termination, manager dismissal, and voluntary withdrawal, requiring CMA approval and a 60-day handover period for fund management transitions. These steps are intended to protect investors’ rights and ensure smooth management changes.
Additionally, Real Estate Investment Traded Funds (REITs) listed on the Parallel Market (Nomu) can now invest in real estate development projects from the outset, without being limited by previous asset and investment ratio restrictions. This is expected to offer greater flexibility and potentially higher returns for investors while broadening investment opportunities in the sector.
