Saudi Arabia: CMA opens consultation on plan to expand foreign investor access
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The Capital Market Authority has invited public feedback on a draft proposal to open Saudi Arabia’s main market to all non-resident foreign investors. The plan also introduces a flexible system for creating simplified investment funds. The consultation is open for 30 days and ends on November 6, 2025.
The CMA stated that the draft aims to reduce fund setup and management costs while providing investors with more structural options. It is based on the Limited Partnership model used in global investment funds and has been adjusted to meet the specific needs of the Saudi market.
The proposal limits offerings to eligible investors, allows funds to operate without a custodian if set up as a special purpose entity and permits participation by foreign investors, government bodies and public institutions through licensed fund managers.
Fund managers would have more freedom on notification timing and could design agreements with investors covering fund closure, liquidation and reporting.
The CMA said the proposal, together with the coming Offshore Securities Business License rules, will help grow Saudi Arabia’s asset management sector and increase its international reach.
In 2024, total assets in the Kingdom’s asset management sector exceeded SR1 trillion, up 20.9 percent from the previous year. Private investment funds comprise 75% of the value.
The number of fund subscribers rose 64.9 percent to 152,405. All comments from the consultation will be reviewed before final regulations are approved.