Regulations to Enable Simplified Investment Funds Launch in KSA
The rules aim to reduce setup and management costs while giving fund managers greater flexibility in structuring investment vehicles.
Saudi Arabia’s Capital Market Authority has approved new regulations enabling the establishment of simplified investment funds, a vehicle designed to lower operational costs and introduce greater flexibility in fund structures.
The new framework, issued under the Simplified Investment Funds instructions, allows these funds to offer units exclusively to institutional clients. Each fund must be managed by a Capital Market Authority-licensed manager authorised to conduct investment management or fund management activities.
According to the regulations, the framework defines the contractual relationship between fund managers and investors, with detailed provisions to be outlined in each fund’s terms and conditions.
These provisions include controls governing the types of investment units issued, reporting mechanisms available to unit holders, policies for amending fund terms, and procedures for organising meetings among unit holders.
The regulator stated that the new structure aims to streamline fund establishment and management while maintaining regulatory oversight across Saudi Arabia’s investment sector.
