SAUDI ARABIA: Financing investment funds, which were previously offered through private placements, could be open to public investors under the latest proposal by the Saudi Capital Market Authority (CMA).
Public consultation is open till the 10th September 2025 on the plan to fold provisions governing financing investment funds into a single regulatory document – incorporating Capital Market Authority Board Resolution No. (1 -11 -2018) dated 24th January 2018.
Investment areas for such funds are limited to financing activities, money market transactions, bank deposits and money market funds – to avoid the fund's exposure to highly volatile investment assets and other low-liquidity assets.
The private fund, which must also be close-ended, is to have a minimum size of over SAR50 million (US$13.33 million). A public financing fund’s exposure to a single beneficiary or multiple beneficiaries belonging to the same group amounting is capped at 25% of the fund's total size.
Borrowings cannot exceed 15% of NAV when listed on the main market. If the fund is listed on the Parallel Market, its total borrowing must not exceed 50% of its total size.
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