Saudi Arabia: CMA Proposes Expanding Public Fund Investments

Summary

Al-Watan, 12 June 2024: The Saudi Capital Market Authority has invited public comments from interested parties, market participants, and stakeholders on the proposed amendments to the Investment Funds Regulations, allowing a 30-calendar day consultation period ending 12 July 2024.

The project aims to allow public funds to subscribe to debt instruments offered through private placements if issued by issuers within the Kingdom, in order to enable the growth of the asset management industry.

Under this project, a public fund manager will be able to subscribe with a larger number of debt instrument issuers, after removing the conditions imposed on them according to the Investment Funds Regulations.

This development is expected to increase the attractiveness of the market for debt instrument issuers, as well as the appeal of funds investing in debt instruments as a result of the expanded range of assets available for them to invest in.