Saudi Arabia has a thriving domestic investment funds sector under the jurisdiction of the Capital Market Authority (the “CMA”). The role of investment fund managers is crucial, as Saudi Arabian investment funds are not separate entities but rather a contract between the fund manager and the unitholders in the relevant fund. Fund managers must be a Saudi joint stock company authorised by the CMA to conduct management activities in the Kingdom of Saudi Arabia, and their responsibilities to unitholders and the CMA are set out in detail in the CMA’s Investment Funds Regulations (the “IFRs”).
Regulation in the IFRs is divided between public and private funds, with the CMA having separate regulation for private real estate investment funds. The Saudi Stock Exchange has listings of:
Units in foreign investment funds can be marketed and offered to investors in Saudi Arabia, subject to compliance with the IFRs. The relevant requirements include:
The Z&Co. team has experience advising a range of fund managers and investors (in each case, both foreign and local) on the offering of investment funds in the Kingdom of Saudi Arabia. Recent relevant matters include advising: