Saudi Arabia’s Capital Market Authority introduces new rules to enhance investment funds and liberalise foreign access.
RIYADH, Saudi Arabia — The Saudi Capital Market Authority (CMA) has enacted a set of regulatory enhancements to develop its investment fund industry and attract new investors. Announced on 9 July 2025, these reforms aim to modernise the capital market and reinforce its competitiveness regionally and globally. The changes are part of the Kingdom’s ongoing efforts to diversify its economy under Vision 2030.
The new regulations focus on three key areas: investment funds, market access, and transparency. For investment funds, the amendments streamline governance and expand the categories of entities allowed to distribute fund units. This includes licensed electronic money institutions and investment platforms, enhancing market efficiency and encouraging broader public participation. The changes also introduce provisions for the smooth transition of fund management responsibilities.
Further reforms now allow direct investment in the Saudi main stock market for Gulf Cooperation Council (GCC) residents. Previously, this was only possible through swap agreements or intermediaries. Additionally, the new rules permit investors who previously resided in Saudi Arabia or the GCC to continue trading in the Saudi market, even after their residency has ended.
These amendments follow a record year for the Saudi market in 2024. During that period, the CMA approved 44 new investment funds, with assets under management reaching approximately SAR 700 billion. This represented a notable growth rate of 25.2% compared to the previous year. The reforms were developed after a series of public consultations held since June 2024.
Source: Capital Market Authority, Saudi Arabia
