Saudi Arabia’s Capital Market Authority (CMA) has unveiled new regulatory reforms aimed at strengthening the Kingdom’s investment fund landscape, in a move aligned with Vision 2030’s economic diversification goals.
The updated regulations cover investment funds, real estate investment funds (REITs), and the CMA’s official glossary of financial terms. According to a press release issued Wednesday, the reforms are designed to increase competitiveness in Saudi Arabia’s asset management industry by adopting international best practices and improving transparency and governance.
A key change is the expansion of fund distribution channels. Investment fund units can now be sold through licensed digital investment platforms and e-money institutions authorized by the Saudi Central Bank. This includes online platforms and mobile apps, making fund participation more accessible to a wider investor base.
Additional reforms streamline the procedures for fund termination and fund manager replacement. Fund managers who choose to voluntarily withdraw—whether from public or private funds—must secure CMA approval and transfer management responsibilities to a successor within 60 days to ensure investor protection.
For REITs listed on the Saudi parallel market (Nomu), the CMA will now permit investments in real estate development projects from the fund’s inception. These projects will not be subject to the usual asset allocation restrictions, creating new avenues for growth and potential returns.
The CMA says these enhancements will help deepen Saudi Arabia’s capital markets and attract both local and international investors.