Share your needs with us, get contacted by law firms.
Free. Takes 2 min.
Or refine your search by selecting a city:
Legal guides written by Tekin Law Firm:
Refine your search by selecting a city.
Funds and asset management in Saudi Arabia is a specialized field governed by a robust legal and regulatory framework. The sector is overseen by several authorities, with the Capital Market Authority (CMA) as the key regulator responsible for supervising, licensing, and regulating participants and activities in the capital market, including mutual funds, private investment funds, and discretionary portfolio management. The aim is to develop a transparent, fair, and efficient market that protects investors and supports the Kingdom's economic goals under Saudi Vision 2030. The legal environment is continually evolving to align with international standards and market demands, making compliance essential for both local and foreign investors and managers.
Navigating the funds and asset management environment in Saudi Arabia can be complex due to its specialized regulations and legal requirements. Common situations where individuals and organizations may require legal assistance include:
A specialized lawyer can help safeguard your interests, ensure compliance, and avoid penalties or reputational damage.
Funds and asset management activities in Saudi Arabia are mainly regulated under the Capital Market Law and a set of executive regulations and rules issued by the CMA. Key regulations relevant to funds and asset management include:
All funds must be authorized by the CMA, and fund managers must fulfill capital, competency, and operational requirements. The regulations are frequently updated, so ongoing legal monitoring is essential.
You can set up public funds, private funds, and special types like real estate funds, exchange traded funds (ETFs), and private equity funds, subject to approval and compliance with CMA regulations.
Only licensed firms, known as Authorised Persons, can manage investment funds in the Kingdom. They must obtain CMA approval and meet certain capital, operational, and experience requirements.
You must submit a detailed application to the CMA, provide supporting documentation, meet minimum capital and staff qualifications, undergo a due diligence process, and comply with ongoing reporting and compliance obligations.
Foreign investors can participate in Saudi funds, but certain funds or assets, like real estate funds investing in the Makkah and Madinah regions, have additional restrictions. Non-GCC foreigners may face extra requirements.
Funds must provide clear, comprehensive prospectuses, regular reports, and ongoing updates about risks, fees, and performance in compliance with CMA rules.
The CMA continuously supervises funds and managers through audits, mandatory filings, and periodic inspections to ensure compliance and protect investor interests.
Yes, subject to certain conditions and transparency requirements. Regulations on cross-border investments, currency risks, and overseas asset disclosure apply.
Investors have rights to information, fair treatment, redemptions as per terms, joining general assemblies, and recourse in case of fund mismanagement or fraud.
The CMA can impose penalties, suspend or revoke licenses, force fund restructuring, or order liquidation. Investors may file complaints or seek compensation through formal channels.
Tax application depends on the type of fund, investor residency, and investment structure. Zakat, withholdings, or VAT could apply to fund activities and investor income. Consulting a tax specialist is recommended.
Most of these regulators provide guidelines, application forms, and up-to-date regulations in English and Arabic on their official websites or through their information centers.
If you are considering entering the Saudi funds and asset management market, or if you need advice regarding regulatory compliance, structuring, or dispute resolution, it is highly recommended to consult a lawyer specialized in funds and asset management law within Saudi Arabia. Start by clearly defining your objectives and gathering preliminary documentation. Then, schedule a consultation with a qualified legal advisor who understands both the local regulatory environment and the specificities of your situation. Stay updated on regulatory changes and seek ongoing legal support for your operations to minimize risk and enhance market opportunities.
