SAUDI ARABIA

Saudi market regulator loosens asset management rules

October 01, 2017

Riyadh -- Saudi Arabia’s markets regulator loosened its rules for licensing asset management and other investment firms on Sunday, according to a presentation by senior officials at the Capital Market Authority (CMA).

The revisions will reduce requirements for obtaining a “management activity” license, aiming to boost the number of asset managers in the kingdom and increase private equity and venture capital investments, the officials said.

Minimum net assets required to be considered an “investment company” were reduced to SR10 million ($3 million) from SR50 million ($13 million), according to a statement handed out during the presentation.

Two new types of activities

The requirement for “management activities” was reduced to SR20 million from SR50 million, and two new types of activities permitted: managing non-real estate investment funds and managing the portfolios of small but experienced investors.

Work experience and certification requirements to be considered a “specialized investor” approved to invest in private equity funds and private placements were also broadened.

The CMA has been revising rules to open access to markets for local entities and foreign institutional investors as part of Vision 2030, an ambitious reform plan to diversify the Saudi economy beyond oil.

It is planning new listing rules to be announced this fall alongside new M&A rules, with an emphasis on driving debt issuance. -- Agencies


October 01, 2017
509 views
HIGHLIGHTS
SAUDI ARABIA
13 hours ago

Objections to municipal violations and fines to be processed electronically within 15 days of submission  

SAUDI ARABIA
14 hours ago

New Social Insurance Law comes into force on Tuesday

SAUDI ARABIA
14 hours ago

Over 190,000 Umrah visas issued since start of the season