CMA OKs public offering of debt investment funds; listing on TASI, Nomu

The Capital Market Authority (CMA) board approved a new regulatory framework for debt investment funds, making amendments to existing instructions in a bid to strengthen these funds' roles as financing channels in the Saudi capital market and provide diverse financial products to support economic growth.

The approved amendments enable the public offering of debt investment funds, having been previously restricted to private placements, permitting their listing on the Main Market (TASI) and the Nomu-Parallel Market.

The CMA also consolidated all provisions governing debt investment funds into a single regulatory document, thereby enhancing regulatory clarity.

The amendments also included approving the change of the title “Instructions on the Direct Financing Investment Funds" to “Instructions for Debt Investment Funds". This is to cover direct and indirect financing activities, which reflects the expanded scope of activities and the updated regulatory framework governing these funds.

The new amendments introduce strict caps on borrowing and exposure to protect investors: Total borrowing for public debt funds must not exceed 15% of the fund's net asset value (NAV). However, for Nomu-listed debt funds, total borrowing is capped at 50% of the total fund size.

Public indirect debt funds cannot have an exposure to a single beneficiary (or group) exceeding 25% of the total fund size, aligning them with direct debt funds. Besides, investment fields are now restricted to limit exposure to highly volatile or low-liquidity assets, ensuring effective liquidity management.

The amendments also allow private debt investment funds to be open-ended, subject to specific regulatory controls.

Fund managers face additional duties, including enhanced disclosure requirements in quarterly and annual reports to unit holders to bolster transparency and governance.

This step comes as part of CMA's ongoing efforts to develop the regulatory framework of the capital market and open new financing channels.

In August 2025, CMA published the draft regulatory framework to the financing investment funds on “Istitlaa” platform and its website for public consultation for a period of 30 calendar days.

View here the regulatory framework for debt investment funds