The Saudi Capital Market Authority has launched a 30‑day public consultation on proposed rules that would allow licensed capital market institutions to offer robo‑advisory services. The window for feedback runs through September 24, 2025.
Under the draft framework, authorised institutions involved in investment management or fund operations would be permitted to deploy “algorithms and modern technological tools to manage client investments based on predefined investment strategies, with no or limited human intervention.”
The proposal outlines a series of obligations intended to ensure system robustness. Firms must notify the CMA in advance of investment strategies and any updates. They must implement control systems, conduct regular testing of their algorithmic tools and ensure portfolios are diverse and not overly concentrated in a single asset or issuer. Foreign‑listed securities included in the portfolios must be regulated by authorities with standards comparable to those of the CMA.
The draft mandates clear disclosures to clients, including explanations of strategy, asset selection criteria, allocation rules and rebalancing mechanisms. Institutions must register the IT officer overseeing the robo-advisory system, publish performance records since inception that include net returns after actual expenses, and maintain ongoing prudential measures to ensure service continuity and safeguard investor interests.
Robo-advisory platforms under management held approximately SAR 3.4 billion in assets at the end of 2024, across approximately 382,600 portfolios. Retail clients accounted for 99.76% of those portfolios.
The initiative forms part of the CMA’s broader fintech strategy under its 2024‑26 strategic plan, which aims to modernise financial services, improve efficiency and expand channels for individual investors.
