Details of rules for activating social impact investment

Saudi Arabian flag in the illustration taken on Aug. 23

The Official Gazette – Umm Al-Qura – published the rules for activating social impact investment, which aim to regulate the issuance of the social impact investment certificate and encourage establishments to engage in social impact investment. They also aim to enhance investor confidence in certified establishments, and support those holding the certificate.

The rules define social impact investment as the allocation of capital to address specific social challenges while also generating financial returns and measurable positive impact.

The rules apply to establishments engaged in social impact investment activities and seeking to obtain a social impact investment certificate.

They set out the procedures for applying for the certificate online, with a decision to be issued within 15 days.

In case of rejection, applicants may reapply after addressing the reasons. The certificate is valid for three years from the date of issuance.