Saudi Arabia's CMA approves key reforms to strengthen asset mgmt sector
Saudi Arabia's Capital Market Authority (CMA) has approved a wide-ranging package of regulatory reforms aimed at strengthening the asset management industry and aligning it with international standards.
The approved amendments cover the
Investment Funds Regulations
,
Real Estate Investment Funds Regulations
, and the
Glossary of Defined Terms
.
The reforms are intended to improve transparency, investor protection, fund governance, and operational flexibility, particularly for investment fund managers and real estate investment trusts (
CMA's key changes include
Expanded distribution channels: Digital platforms and electronic money institutions licensed by the Saudi Central Bank can now distribute fund units, enabling broader access for investors.
New REIT flexibility: Real estate funds traded on the parallel market (Nomu) can invest in development projects without initial asset or percentage restrictions.
Risk reduction: Money market and capital protection funds must cap exposure to a single debt instrument at 10 per cent and total exposure to one entity at 25 per cent of net assets.
Improved governance: Rules now require CMA approval and a 60-day transition period for changes in fund management, ensuring continuity and investor protection.
Retail investor limits: Caps were introduced to limit retail investor subscriptions in private and foreign funds to 50 per cent of total contributions, preventing concentration risks.
These changes follow a record year in 2024 when the
Assets under management reached nearly SAR700bn, growing 25.2 per cent year-on-year.
The CMA said the reforms were finalised after public consultations held in June and October 2024 and in February earlier this year.
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