Riyadh: The Capital Market Authority (CMA) called upon relevant and interested persons participating in the capital market to share their feedback on enabling investors in the capital market to invest in financing investment funds-previously offered through private placements-under the regulatory framework for financing investment funds. The consultation period will last for 30 calendar days, ending on 18/03/1447H, corresponding to September 10, 2025.

According to Saudi Press Agency, the proposed draft aims to develop the regulatory framework for financing investment funds and introduce new products in the Saudi capital market by allowing investment funds established to engage in direct and indirect financing activities to be publicly offered. This would contribute to providing an additional financing channel that supports economic growth and meets financing needs, enables the growth of the asset management industry, increases total managed assets, and diversifies the investment products available to public investors in the Saudi capital market.

Once approved, the draft is expected to contribute to increased momentum and accelerated growth in the assets under management of financing investment funds, with the total value of private financing funds reaching approximately SAR2.8 billion by the end of 2024.

The introduction of this type of financing also provides more diverse financing options and enables the collection of sufficient subscriptions to cover the fund’s size, allowing the fund manager to establish larger funds with the capacity to diversify their financing portfolios, thereby reducing the fund’s overall risk level.

The CMA emphasized that the comments of relevant and interested persons-individuals, government entities, private-sector participants, and entities supervised by the authority-will be carefully considered with a view to approving the final version of the draft.