Saudi Arabia’s Capital Market Authority (CMA) has initiated a public consultation on proposed regulations to strengthen the asset management sector. The draft framework seeks to enhance transparency, safeguard investor interests, and align with international best practices.
The proposed regulations outline requirements for establishing investment funds and preparing financial statements. They also aim to enable the distribution of investment fund units through entities authorised by the Saudi Central Bank and propose caps on service fees and commissions charged by public fund managers. Additionally, the framework addresses provisions for the voluntary withdrawal of public and private fund managers.
The CMA’s initiative aligns with Saudi Arabia’s Vision 2030, which includes the Financial Sector Development Program designed to diversify the economy and reduce dependence on oil revenues. The asset management industry has seen significant growth, with assets under management (AUM) reaching 22% of GDP in 2023. Private funds are currently three times larger than public funds, and Saudi bank-affiliated managers hold 63% of industry revenues.
The public consultation period is open until March 7, 2025, allowing stakeholders to review and provide feedback on the proposed regulations. The CMA’s efforts reflect a commitment to fostering a robust and competitive asset management industry in Saudi Arabia.
