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In a major regulatory development, the Capital Market Authority (CMA) has approved a new framework allowing public offering of financing investment funds and their listing on both the Main Market and Parallel Market in Saudi Arabia.
Previously limited to private placements, these funds can now access broader investor participation, supporting market diversification and increasing assets under management. The reforms also unify regulations under a single framework, enhancing transparency and governance across the sector.
The updated rules introduce key risk controls, including borrowing caps of 15% of net asset value for public funds and up to 50% for funds listed on the Parallel Market, while also limiting exposure to single beneficiaries to ensure better risk management.
Additionally, the CMA expanded the scope of financing funds to include both direct and indirect financing, aligning with global best practices and strengthening Saudi Arabia’s position as a leading investment destination.
This move reflects the Kingdom’s continued efforts to develop its capital market infrastructure, attract global investors, and unlock new financing channels for economic growth.
How J K Management Consultancies Supports You
J K Management Consultancies assists investors and businesses with regulatory advisory, company formation, fund structuring support, and compliance services in Saudi Arabia. With expert guidance, J K ensures seamless entry into evolving financial markets and helps clients leverage new CMA opportunities effectively.
