Saudi Arabia To Enable Listing of Investment Funds on Tadawul, Nomu

Saudi Arabia's Capital Market Authority (CMA) is planning to make investment funds available to the public via the stock markets. 

The new initiative, for which it has sought public feedback, allows for certain types of "financing investment funds", which are currently only available through private placements, to be listed on the Main and Parallel Markets of the Saudi Stock Exchange (Tadawul).

The move is part of a strategy to diversify investment products for the public, boost the asset management industry and provide new funding channels to support economic growth.

The proposal includes a single, unified regulatory document for these funds. It also includes new rules related to risk management, such as limiting a fund's exposure to one client or group to no more than 25% of the total size.

The funds can invest in financing activities, money market transactions and bank deposits.

The public consultation for the proposal runs for 30 days until September 10, 2025.